Fed points to market froth as leading stability risk

In its latest financial stability report, the Federal Reserve found that asset valuations continue to be elevated and leverage levels remain high, especially among nonbanks like hedge funds and insurance firms.

PNC boosts branch investment to $2B, plays down more M&A

The Pittsburgh-based bank said Friday that it will focus on building 300 branches in high-growth markets by 2030. It also minimized the prospects for another acquisition on the heels of its recent deal for Colorado-based FirstBank.

Activist investor drops recent proxy battle threats

HoldCo Asset Management drops its pursuit of proxy battles with Columbia Banking System and First Interstate; Cape Cod’s Mutual Bancorp prepares to acquire Bluestone Bank; Servbank HoldCo announces plans to acquire IF Bancorp; and more in this week’s banking news roundup.

Judge rejects $425M settlement in Capital One class action

Capital One must reengage in settlement talks with lawyers for savings-account holders after a judge found that an agreement between the two sides wouldn’t provide adequate compensation to customers who were allegedly victimized by the bank.