Experts hear familiar warnings in Fed’s latest novel activity guidance
The Federal Reserve issued fresh policy guidance around stablecoin issuance, distributed ledger technology and fintech partnerships. Legal and policy analysts anticipate a further chilling effect on bank engagement with so-called novel activities.
Riverview in Washington fires CEO ‘without cause’
The $1.6 billion-asset company said in a press release Wednesday that its directors “voted to terminate” Kevin Lycklama’s employment. Dan Cox, chief credit officer, was named as acting president and CEO.
BofA sued by pension fund for fraud in unemployment benefits program
The Seafarers International Union sued Bank of America’s senior managers and board alleging breach of their fiduciary duty in managing a prepaid debit card program that distributed unemployment benefits during the pandemic.
Synovus sells $373M in auto loans as balance sheet reduction continues
The deal with private equity firm KKR follows an earlier announced sale of $1.3 billion in medical office loans. The Columbus, Georgia-based company has said it’s “proactively optimizing the balance sheet” to position itself for long-term growth.
Brown: Fed dragging feet on merger review process
Senate Banking Committee chair Sherrod Brown, D-Ohio, and other committee Democrats told the Federal Reserve that the agency isn’t considering financial stability enough in its review of bank merger applications.
Acquisitive Glacier Bancorp strikes deal to expand in Northwest
The nearly $81 million plan to buy Community Financial Group in Spokane, Washington, would mark the 13th acquisition in the past decade for Glacier. The Montana-based bank has more than tripled in size during that time.
Microsoft develops AI for banks, Apple Pay launches in Vietnam
In global news this week, Microsoft is working with the London Stock Exchange Group on artificial intelligence, Apple’s mobile wallet debuts in Vietnam, and more.
With FedNow live, banks hone in on uses for real-time payments
BNY Mellon, U.S. Bank and others are looking at how the Federal Reserve’s instant settlement network could safely speed up routing, payroll and billing.
Well-capitalized banks are good for everyone, except Wall Street CEOs
The real threat is from undercapitalized banks, and regulators must require large banks to have enough capital to eliminate that threat.
Fed tells banks to get permission before offering stablecoin services
The Federal Reserve has outlined the process state member banks must follow before issuing, redeeming or holding stablecoins. The agency also says it will create an examination process to monitor novel activities.