Fintechs balk at bill that would limit their new SBA lending authority
Critics complain a bill sponsored by the leaders of the Senate Small Business Committee would reinstate a moratorium on participation in the SBA’s flagship 7(a) program by nondepository lenders. Supporters of the bill argue that widening the program could invite more fraud.
First Citizens will hold off on buybacks as it integrates SVB
The acquisition of Silicon Valley Bank helped push the bank’s capital ratio to 13.4% in the second quarter, above its target range. But First Citizens said it would focus on absorbing SVB, and assess the impact of new capital rules, before restarting buybacks.
European banks have to upgrade their core tech. Are U.S. banks next?
Regulators have been issuing real-time-payment requirements that push EU banks to modernize their core processing systems. U.S. banks may feel similar pressure from the movement toward real-time payments.
Fitch actions cast Fannie Mae, Freddie Mac conservatorships in new light
Their links to the Treasury have been considered a source of strength and still are, but less so, according to one rating agency. Others disagree.
U.S. Bank takes step to boost capital after MUFG Union Bank deal
The Minneapolis company is issuing stock to the Japanese banking giant that previously owned MUFG Union Bank in order to repay part of a $3.5 billion obligation. The move will also boost a key capital ratio, which sagged after the deal was completed, but is expected to cut into U.S. Bancorp’s earnings per share.
NAFCU, CUNA merger plans draw concerns about equal representation
Critics of the proposed deal between the National Association of Federally-Insured Credit Unions and the Credit Union National Association say their combination could drown out the concerns of the groups’ smallest members.
Banks urge CFPB to halt small-business rule pending high court decision
Two bank trade groups have asked the Consumer Financial Protection Bureau to relieve all banks from complying with its small-business lending rule until after the U.S. Supreme Court decides whether the bureau’s funding is constitutional.
U.S. downgrade caused rates to rise, Freddie Mac says
But a Zillow economist argues that there’s plenty of evidence suggesting strong GDP and job growth had more to do with the increase than what Fitch did.
House Republicans target CFPB dialog with European regulators
A group of House Republicans led by Rep. Young Kim, R-Calif., said that the Consumer Financial Protection Bureau doesn’t have the authority to hold information discussions with the bureau’s European Union counterparts.
Fed’s Barkin says inflation-rate drop may be soft-landing signal
Federal Reserve Bank of Richmond President Thomas Barkin said the greater-than-expected easing in inflation in June may be an indication that the U.S. economy can have a “soft landing,” returning to price stability without a damaging recession.