The US economy saw its steepest drop on record during the second quarter, with GDP plunging 32.9%. The drop reflects the devastation the coronavirus pandemic and stay-at-home orders had on the economy.
American women are on track to hold some $30 trillion worth of assets by the end of the decade, a report from McKinsey finds, a trend that has major implications for the wealth-management sector. "An unprecedented amount of assets will shift into the hands of U.S. women over the next three to five years, representing a $30 trillion opportunity by the end of the decade," McKinsey said.
News that Kodak will pivot to pharmaceuticals after receiving a $765 million loan from the federal government sparked a massive rally in the company's shares, ending the day 318% higher. The rally triggered circuit breakers 20 times during Wednesday's trading session.
Modern Money Murmurs: Hard to think of a more dramatic example of government picking corporate winners and losers than this. If you can think of one, send it our way.
The Consumer Bankers Association has joined other groups on opposing a proposed banking charter specifically for payment companies under discussion by the Office of the Comptroller of the Currency. "These charters could introduce serious risks that would undermine the valuable role that national banks play in our dynamic economy," the groups said in a letter to OCC.
Federal Reserve Chair Jerome Powell has responded to a concern that asset manager BlackRock's role as a buyer of corporate bonds and commercial mortgages for the Fed could prompt conflicts of interest. Powell said the relationship, which began with BlackRock's appointment in March, is monitored carefully and stressed that "BlackRock is just our agent."
Sen. Elizabeth Warren, D-Mass., called for Consumer Financial Protection Bureau Director Kathy Kraninger to resign, saying her leadership has been a "miserable failure" during the coronavirus pandemic. Warren said the CFPB's policies give companies a "get out of jail free" card while hurting consumers.
Bank of America joined 30 lawmakers in asking the Small Business Administration to correct erroneous Paycheck Protection Loan data released to the public early this month. The erroneous information is "casting shadows on the veracity, quality, and reliability of other loan data," BofA and lawmakers said in a letter to the SBA.
The Office of the Comptroller of the Currency is being sued by attorneys general from New York, Illinois and California over a rule they say would allow nonbank lenders to purchase bank loans in states with interest rate caps. The rule encourages "rent-a-bank' partnerships and predatory practices, the states said in their lawsuit.
Banking and consumer groups are asking Congress to include a three-year moratorium on industrial loan company charters for fintechs in the latest stimulus package. The groups say an ILC charter application currently under review for Japanese e-commerce company Rakuten, if approved, would open the door for companies like Amazon and Apple to receive them.