Acting Consumer Financial Protection Bureau Director Dave Uejio's decision last month to rescind the agency's guidance on labeling "abusive" practices, which was adopted during the Trump administration, was to be expected ahead of the likely confirmation of Rohit Chopra as the agency's permanent director, experts say. "I don't think the Chopra-led agency could really jump out the gate if this policy statement was still there, so it was a necessary and expected change," said McGlinchey Stafford attorney Kelly Lipinski.
PNC Financial Services has launched a "Low Cash Mode" digital service that helps checking account holders avoid overdraft fees by notifying them when their balance is about to fall below zero. PNC Chairman and CEO William Demchak said overdraft fees have been "the No. 1 aggravation point for our customers."
Five additional Black-owned lenders will receive support from Wells Fargo as part of its $50 million commitment to minority-owned banks. Six black-owned banks received investments earlier this year and Wells Fargo also pledged support to digital bank Greenwood, which will serve Black and Latino communities.
Sen. Elizabeth Warren, D-Mass., grilled executives of the top student loan servicers, called the federal program a "complete failure" and advocated for student loan forgiveness during a hearing of the Subcommittee on Economic Policy at the Senate Committee on Banking, Housing, and Urban Affairs. Sen. John Kennedy, R-La., the ranking member of the committee, said his "mind is open" about student lending and how to fix it.
The release of reserve funds banks have held onto through the coronavirus pandemic is expected to boost their first quarter earnings reports. Banks' earnings outlook appears strong, though low interest rates and sluggish loan demand will likely continue to pose challenges.
With a AI-conducted interview, word selection is just as important as body language so practice your answers ahead of time and limit "I think" and such phrases. "Generally what we have found is a lot of the algorithms are looking for confidence," says Andres Lares of Shapiro Negotiations Institute.
The Financial Crimes Enforcement Network is asking financial institutions for comments on the true-owner database it is establishing as part of the Corporate Transparency Act, which will require companies to report their true owners to the agency, instead of just to banks. Questions remain about to what extent the law will relieve anti-money-laundering burdens from banks and how the agency will use the information.
Payment processor Stripe was a big beneficiary of last year's coronavirus lockdowns, as businesses of all variety shifted to online payments. Stripe's revenue for 2020 reportedly rose by almost 70% to around $7.4 billion, and Chief Financial Officer Dhivya Suryadevara expects continued growth.
The Federal Reserve is involved in research and development of a digital US currency, but Chair Jerome Powell emphasized it is mainly concerned at the moment with "understanding the technology and the possibilities so that you can really address the policy issues." Powell said there is no rush for the US to be first to launch such a currency, and Congress and the public should be involved in the process.
The Consumer Financial Protection Bureau has indicated it will "look more broadly, beyond fair lending" when addressing racial equity but has not specifically stated what the standards would be, write Paul F. Hancock and Olivia Kelman of law firm K&L Gates. Financial institutions could "pushback" if the CFPB goes too far, which could lead to lawsuits, they write.