Bank failures signal need for stronger supervision, regulation: Powell

“The events of the past couple of months would have been much more difficult to manage had the largest banks been undercapitalized or illiquid,” the Fed chair said Thursday.

By Rajashree Chakravarty • June 29, 2023

Largest banks weathered hypothetical $541B hit, Fed says

All 23 of the banks subject to stress tests remained above their minimum capital requirements in this year’s scenario, which featured a severe downturn in real estate markets.

By Anna Hrushka • June 29, 2023

Explore the Trendline➔

Artificial intelligence

Banks are enthusiastic about AI’s promises. But can they get customers on board, and will regulators let the innovation happen?

By Banking Dive staff

Yellen, regulators took ‘wrong lessons’ from bank failures: Warren

In a letter, the senator asked why the Justice Department relinquished some responsibility in its oversight of competition. She also asked when regulators would release updated merger review guidelines.

By Rajashree Chakravarty • June 28, 2023

House bill would require large banks to have chief risk officers

Under the measure, banks with $50 billion or more in assets must notify their federal and state regulators within 24 hours of a risk chief vacancy. Banks would be subject to an asset cap if the post is open for more than 60 days.

By Anna Hrushka • June 26, 2023

US servicemembers ensnared by digital payment app scams

Servicemember complaints about digital payment apps surged last year, according to a CFPB report, which also highlighted military families’ susceptibility to payments fraud.

By Lynne Marek • June 22, 2023

Maximizing the benefits of digital income verification for underwriting and risk management

Interest rates aren’t showing signs of slowing down anytime soon, especially as the U.S. economy continues to be resilient.

June 20, 2023

OCC’s Hsu says US banks strengthened liquidity but vigilance is key

The agency's semiannual risk perspective highlighted the importance of being watchful in managing weaker portfolio segments.

By Rajashree Chakravarty • June 15, 2023

Wells Fargo CFO warns of commercial real estate weakness

Wells Fargo CFO Mike Santomassimo is the latest big-bank executive to detail commercial real estate distress and its potential impact on lenders.

By Maura Webber Sadovi • June 14, 2023

JPMorgan Chase reaches $290M settlement with alleged Epstein victims

The move comes less than a month after Deutsche Bank agreed to pay $75 million to settle an alleged Epstein victim’s class-action lawsuit.

By Anna Hrushka • June 12, 2023

After TD, First Horizon appears ready for its hot bank summer

Investor events for both banks this week indicate each is eyeing aggressive growth. If they were people, they might be checking each other’s social-media feeds and engaging in a relationship detox.

By Dan Ennis • June 9, 2023

Climate First mulls Florida exit after anti-ESG bill passes

In response to the legislation, the bank nixed its exclusionary list, outlining the sectors with which it has said it won’t do business, such as the fossil-fuel sector or other extractive industries.

By Anna Hrushka • June 9, 2023

Bigger buffer would hurt BofA’s lending, Moynihan says

“If our capital ratios go up by 100 basis points, simply put, we can’t make about $150 billion of loans,” the CEO said, when asked how reports of an average 20% increase in capital requirements would affect the bank.

By Anna Hrushka • June 8, 2023

Binance court filings shed light on relationship with failed banks, Gensler

The now-SEC chief offered to serve as a Binance advisor in 2019, Binance's legal team alleges. The filing also details billions of the exchange’s dollars funneled through Silvergate and Signature.

By Gabrielle Saulsbery • June 8, 2023

Citizens to end car dealer financing business

The bank had $11.5 billion of auto loans outstanding as of March 31 — down 6.5% from the end of December, and 20.1% from March 31, 2022.

By Anna Hrushka • June 8, 2023

Banks’ use of chatbots could reduce trust, CFPB warns

“A poorly deployed chatbot can lead to customer frustration ... and even violations of the law,” the bureau’s director, Rohit Chopra said Tuesday.

By Rajashree Chakravarty • June 7, 2023

Fed, FDIC, OCC update guidance on third-party risk management

Regulators described the new guidance as “principles-based,” which can be adjusted to the unique circumstances of each third-party relationship.

By Anna Hrushka • June 7, 2023

FTX’s legal team has its hands full

The bankrupt crypto exchange is fighting court battles on multiple fronts, and former CEO Sam Bankman-Fried’s attorneys say the U.S. government is overdue to supply evidence in its case against him.

By Gabrielle Saulsbery • June 7, 2023

SEC charges Binance, CEO Zhao with 13 violations

The regulator alleged high-value U.S. customers were secretly allowed to trade on Binance platforms after the company said otherwise, and that controls allowed customers’ funds to commingle.

By Dan Ennis • June 5, 2023

UBS could close Credit Suisse deal next week

The Swiss bank may delay its second-quarter results until the end of August to give investors a clearer update on its plans for Credit Suisse’s domestic business, the Financial Times reported.

By Rajashree Chakravarty • June 5, 2023

Banks could face 20% capital buffer increase: report

The largest increases are expected to fall on lenders with big trading operations, and those who rely heavily on fee income, sources told The Wall Street Journal.

By Anna Hrushka • June 5, 2023

OCC targets big banks with ‘persistent weaknesses’

The regulator's new enforcement manual appendix comes in the wake of the recent bank failures and is aimed at larger and more complex financial institutions.

By Rajashree Chakravarty • May 30, 2023

Payments fraud climbs as banks reach for joint response

Financial institutions and payments players are seeking to coalesce around new efforts to battle skyrocketing payments fraud.

By Lynne Marek • May 26, 2023

LGBTQ+ fintech Daylight to close its doors

Customer money can be accessed for transfer until June 30, the company's last day of banking operations, CEO Rob Curtis said in a blog post.

By Rajashree Chakravarty • May 25, 2023

First Horizon investor sues TD over scrapped $13.4B deal

The Arbitrage Fund asserts TD misled investors regarding its anti-money laundering practices and regulator resistance to the tie-up, which the banks terminated this month.

By Dan Ennis • May 24, 2023

PacWest to sell $2.6B in real estate loans

Real estate investment firm Kennedy-Wilson has agreed to buy a portfolio of 74 loans at a discounted price as PacWest tries to bolster its liquidity amid regional bank turmoil.

By Rajashree Chakravarty • May 23, 2023