The whistleblower who tipped off UK and US regulators about global interest-rate benchmark manipulation at Deutsche Bank was awarded nearly $200 million by the US Commodity Futures Trading Commission. The whistleblower had initially been denied an award, but submitted a request for reconsideration to the CFTC.
Consumer Financial Protection Bureau Director Rohit Chopra has named Eric Halperin to lead the bureau's enforcement division. Halperin worked in the Justice Department's Civil Rights Division from 2010 through 2014.
The post-pandemic landscape provides an opportunity for financial services firms to place more women in leadership positions, where they are still significantly underrepresented, a report by McKinsey finds. "We challenge companies to not go back to the status quo, and take this chance to redefine the way we ensure diversity of thought and leadership in our ranks," said Jill Zucker, one of the report's authors.
Plaid has announced a new venture into the payments sector by deploying its software to facilitate digital payments from consumers and business bank accounts, in a joint initiative with tech firms and payment processors such as Square and Stripe. The venture represents a renewed attempt to enter the sector after last year's planned sale to Visa was blocked by the Justice Department.
Ally Financial will purchase credit card company Fair Square Financial for $750 million. Ally started winding down its cash back credit card in 2019, but will gain 650,000 card customers with the Fair Square acquisition.
If the US develops a digital dollar, it puts the Federal Reserve in direct competition with banks, said Fed Governor Chris Waller. The decision on whether a central bank digital currency should be created should be up to lawmakers rather than the Fed, Waller said.
Capital buffers were introduced at the end of the last financial crisis to insulate against future shocks, but they proved less than effective during the coronavirus crisis, writes Laura Noonan. The Association of Financial Markets in Europe contends that a solution may be found by enlarging countercyclical buffers and shrinking the capital conservation buffer, although Noonan notes this approach could give rise to some new risks.
Texas Citizens Bancorp is being purchased by Business First Bancshares in a $52.9 million equity deal. The merger is set to be completed during the first quarter of next year and the merged entity will have combined assets totaling $4.9 billion.
The Consumer Financial Protection Bureau's examination of the consumer financial data practices of big tech companies has been welcomed by the Consumer Bankers Association. "Since the Bureau was founded, a growing share of banking activity has occurred outside of the purview of leading regulators, putting consumers and the resiliency of the financial system at risk. CBA long has advocated for instituting a level playing field to ensure every American family receives the protections they deserve, regardless of where they go to meet their financial needs," said CBA President and CEO Richard Hunt.