Why banks like tokenized deposits
Banks are more active in the digital asset option than stablecoins. Those involved say the appeal is the similarity to traditional banking, only faster and more digital.
FDIC rescinds 2023 guidance on nonsufficient-fund fees
The FDIC rescinded guidance that advised charging customers multiple nonsufficient-funds fees for the same transaction could be considered unfair or deceptive.
Debt collectors sue California regulator over licensing fees
A trade group representing debt collection agencies alleges that the Golden State is charging unlawfully high licensing fees in an effort to fund an inflated budget. California regulators declined to comment on the suit.
Deutsche Bank raises chairman pay, Wells Fargo hires Ghosh
Deutsche Bank is raising the base pay of Supervisory Board Chairman Alexander Wynaendts by 21%, Wells Fargo has hired Neil Ghosh as head of chemicals investment banking, Bank of America’s Alexandre Bettamio is being considered for chief executive officer of Brazilian stock and derivatives exchange B3 SA, and more in this week’s banking news roundup.
OMB will release CDFI funding
The White House Office of Management and Budget will issue paperwork allowing the Treasury Department to disburse congressionally appropriated funds through the Community Development Financial Institutions Fund, breaking an impasse that has stalled funding for months.
FBI: Real estate cyberfraud rises with more AI, crypto scams
The industry reported $275 million in losses from internet crimes last year, a 59% annual increase as losses nationwide surpassed $20 billion.
Reputational risk rule shows why subjectivity is so hard to ban
A rule banning bank examiners from using reputational risk in their examinations includes an exception for operational risks — another notoriously unquantifiable category of risk. Experts say the concession suggests the attempt to carve subjectivity out of bank examination may amount to a relabeling exercise.
The cost of being in the public eye rises
Banks are spending more on security for their executives, given the murder of UnitedHealthcare’s CEO; a new lender targets mineral-rights holders.
Energy prices drive up inflation by 0.9% in March
A 21.2% spike in the price of gasoline was the biggest contributor to a 0.9% increase in the Consumer Price Index in March, according to a Friday report from the Bureau of Labor Statistics. The agency said other price increases were largely contained.
A new regulatory era is opening the door to banking innovation
After a nearly two-decade long “ice age” in which few new banking charters were granted, regulators have shrugged off a zero-failure mentality and are allowing some risk back into the system.