The Latest
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Trump’s Capital One accounts closed after AML review, bank says
The bank has not accused the Trump Organization of money laundering. But Capital One said the transaction patterns it identified are “among the types of activity flagged by federal banking guidance.”
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Judge rejects DOJ’s attempt to drop Lakeland redlining order
A federal judge denied the government’s bid to terminate the bank’s consent order ahead of schedule, saying “a promise to reach substantial compliance in the future is not substantial compliance.”
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UBS to pay $125M in AML penalties
The brokerage arm of the Swiss bank didn’t fix flaws identified in 2018, resulting in some 60,000 foreign currency wires valued at about $10 billion going unmonitored, regulators said.
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Frost CEO warns of ‘race to the bottom’ on Texas loan structure
While $54 billion-asset Frost Bank seeks to remain competitive on price, the structure element of loans can be tough, because it’s “dangerous to do that poorly,” CEO Phil Green said.
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OCC, FDIC propose another CRA revamp
The regulators – absent the Federal Reserve – would limit grants banks give to “activist” community groups. Friday’s proposal would also reduce the number of banks that must collect CRA-related data.
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Citi hires away FinCEN chief for compliance role
Andrea Gacki, the director of the Financial Crimes Enforcement Network since 2023, will become global head of sanctions at the New York City-based lender.
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Chime to cut 10% of workforce
CEO Chris Britt cited AI innovations but also a switch to smaller teams, faster movement, higher productivity and in-office work.
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Fed bans ex-Regions, First Interstate bankers
An Idaho-based teller embezzled $8,000 from First Interstate’s cash recycler, the central bank said. A Florida-based Regions relationship banker allegedly withdrew roughly $203,000 from a customer account without consent.
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Founder of fintech Increase buys a bank in Washington state
Increase founder Darragh Buckley said the move was a long time coming, as he started the company six years ago with the goal of marrying a bank and technology company.
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Associated Bank chief digital officer joins from BMO
Brianna Elsass leaves BMO after a decade of digital leadership positions. She most recently led the Canadian bank’s U.S. digital and technology business.
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Capital One gives update on Discover community investment plan
The bank issued a report last month on progress related to the $265 billion it had committed to invest as part of its bid to buy Discover. Charitable organizations offered little support for the statement.
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Banc of California sees surprise $251.3M loss
The Los Angeles lender repositioned securities into shorter-duration, higher-yielding products. It also launched the sale of $827 million in real estate and multifamily loans and retired $385 million in debt.
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PNC’s wealth unit targets mass-affluent clients with lending option
The Pittsburgh-based lender is pursuing a national identity, and national banks have put more focus on a securities-based lending-type solution in recent years, an executive said.
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Fifth Third lures commercial fintech head from HSBC
Dan Allred previously spent 20-plus years climbing the ranks at Silicon Valley Bank, becoming a senior market manager on its national fintech team.
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Activist investor prods Washington bank to sell
Down Range Capital Opportunity Fund is urging the board of $2.3 billion-asset Cashmere Valley Bank to find a buyer, saying its value “can only be unlocked” through a sale.
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Ex-CFPB official tapped to lead NJ consumer affairs unit
Christopher Peterson is one of at least two recent state-level consumer advocacy hires, after California named former CFPB chief Rohit Chopra to lead a newly formed consumer agency.
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PNC names CISO, while Truist powers up in wealth
PNC’s new chief information security officer and Truist’s new wealth head each spent decades with, and climbed the ranks at, their prior employers.
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Rent fintech Flex applies for ILC charter
Jeff Berkson, who until May served as chief risk officer at WebBank, will be the bank’s proposed CEO. The lender will be based in the Salt Lake City area and operate nationally through digital channels.
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Huntington banks on fee growth amid deposit cost competition
As the regional lender’s deposit costs edge up, strong fee revenue can offset the bank’s slightly lower than expected net interest income, CFO Zach Wasserman said.
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Banco Popular CEO to retire
Puerto Rico’s largest lender is moving its CFO, Jorge García, into its chief executive role when Javier Ferrer exits the bank Aug. 31.
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BitMEX to shutter after 11 years
HDR Global Trading Limited, BitMEX’s owner and operator, has decided to close the cryptocurrency exchange following a strategic review of the business and crypto industry.
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OCC rejects Wise’s trust charter application over ‘deficiencies’
The British fintech said it plans to submit a new application for a U.S. trust charter under a Genius Act framework.
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Retrieved from OCC.
Upstart nabs conditional bank charter
“We've been challenged extensively throughout the process, and that's exactly what should happen when an institution is seeking the privilege of becoming a national bank,” an Upstart executive said.
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Democrats grill CFPB nominee over CapOne, staff-cut plan
Capital One executive Brian Johnson weathered a testy exchange with Sen. Elizabeth Warren over potential conflicts of interest. Johnson said the CFPB has “deficiencies” but is “capable of great good.”
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Q&A
Tasks, not customer tiers should drive bank AI use: Deloitte
Everybody needs “to be heard, comforted, educated in times of high stress,” a Deloitte consultant said. Customers who are lower on the value scale need to receive the same excellent experience “or you're going to lose them.”