A "culture of cybersecurity complacency" was at the heart of the Equifax breach that jeopardized the personal information of 148 million US residents, according to a report by the Republican staff of the House Oversight and Government Reform Committee. "Had the company taken action to address its observable security issues prior to this cyberattack, the data breach could have been prevented," said the report, which disclosed that Equifax had been using an expired SSL security certificate for more than a year and a half, allowing suspicious activity to go unchecked.
Wall Street banks are scrutinizing US financial and economic data for any early warning of a recession in 2019. JPMorgan Chase puts the odds of a recession next year at 35%, while Bank of America sees a 20% to 30% chance.
Wells Fargo must address deficiencies in risk management before the Federal Reserve will lift its growth cap, Fed Chairman Jerome Powell said in a letter to Sen. Elizabeth Warren, D-Mass. The Fed imposed the cap after it was discovered that Wells Fargo employees had created fake accounts to inflate sales numbers.
Rep. Maxine Waters, D-Calif., has been nominated to lead the House Financial Services Committee when Democrats gain control in January. Waters said she would "prioritize protecting consumers and investors from abusive financial practices."
The only significant change in the latest retirement bill in the House released by Rep. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee, is an expansion of the 529 savings account, said Dan Zielinski of the Insured Retirement Institute. He noted that other issues could be addressed later in the legislative process, saying the draft released Monday might not be "the end vehicle."
Kathy Kraninger has not stated which direction she is taking as she begins a five-year term as director of the Consumer Financial Protection Bureau. Former acting Director Mick Mulvaney made changes including reduction of the budget and legal penalties, and it is not known whether Kraninger will continue his policies.
Most students use college-sponsored bank accounts for free, according to a report by the Consumer Financial Protection Bureau. Some pay fees for optional banking services, including wire transfers and overdraft fees, which CBA President and CEO Richard Hunt says do cost consumers.
The Federal Reserve and the Georgia Department of Banking and Finance have approved the acquisition of Florida's FCB Financial Holdings by Synovus Financial. The transaction, expected to close in January, gives Synovus branches in South Florida.
A proposed revamp of the Volcker rule likely would pave the way for banks to reduce compliance costs and to increase trading, Bloomberg Intelligence analyst Nathan Dean writes. Proprietary trading would remain off-limits, but banks would be able to increase trading within internal risk limits, Dean writes.