AI is the clear answer to America’s financial literacy crisis
A huge percentage of Americans, particularly Gen Z and millennials, score poorly on financial literacy tests, with predictable consequences. AI-powered agents would help empower them.
Flagstar’s losses shrink as bank looks toward profitability
The Long Island-based company’s second-quarter net loss was the seventh consecutive quarter in which it has reported a net loss. CEO Joseph Otting remained optimistic Friday about the bank’s future, saying it should return to profitability in the fourth quarter.
Not over yet: Office loans are still inflicting pain
Eagle Bancorp in Maryland took a major quarterly loss due to challenges in its office loan portfolio. It’s one of many banks working to trim down their commercial real estate loan books.
Trump, Powell tussle over renovation costs in rare visit
President Trump and Senate Banking Committee Chair Tim Scott, R-S.C., visited the Federal Reserve Board headquarters Thursday afternoon to inspect ongoing renovations whose cost overruns have heightened scrutiny of Fed chair Jerome Powell.
Pinnacle, Synovus to merge; deal would create $116B bank
The two Southeast banks agreed to combine in a transaction valued at $8.6 billion. Synovus CEO Kevin Blair would be chief executive of the combined bank, but a slim majority of board members would come from Pinnacle.
In rare move, Flagstar seeks to dissolve its holding company
Flagstar Bank wants to merge its holding company into the bank, which would cut $15 million in annual expenses and eliminate regulatory oversight by the Federal Reserve, leaving the OCC as its primary regulator. The bank’s CEO, Joseph Otting, is a former comptroller of the currency.
How the Fed is managing payments’ ‘new GPS’
Fedwire has migrated to ISO 20022, a messaging standard designed to make it easier for digital real-time processing rails to work together. It’s a difficult lift for banks, but the agency promises it will be worth it.
Bread still watching inflation even as its credit improves
Bread Financial continues to keep its eye on the potential inflationary impacts of the Trump administration’s trade policies, despite the fact that its delinquencies and losses declined in the second quarter.
When customers go rogue, new AI models try to catch them
First-party fraud — customers claiming they never made a transaction when they know full well they did — is a growing problem for banks. An emerging host of vendors including Socure are offering machine learning models that detect this.
Consumer groups sue CFPB over small business data rule
A coalition of consumer groups sued the Consumer Financial Protection Bureau and acting Director Rusell Vought for refusing to implement a statutorily-mandated small business data collection rule that is already tied up in litigation.