The cost of deposits and the next Fed chair
The cost of deposits has fallen but the trend may get short-circuited by a Fed that can’t cut rates amid the inflationary pressures of the war in Iran.
As payment partnerships proliferate, here’s how bank risks are changing
With regulatory scrutiny on the rise, banks are putting payment collaborations under the microscope.
Another noneconomist Fed chair isn’t what the country needs right now
Kevin Warsh is a younger version of Jay Powell but with a convincing economist “eminence front.” What Warsh does not have, as was the case with Powell, is an economics Ph.D., and that, as the post-pandemic inflation surge has shown us, is critical.
Fed rate pause may rekindle bank deposit competition
Banks’ deposit costs fell as the Fed made borrowing cheaper. But signs of increased competition are already emerging, and analysts see a tougher road ahead.
Fed flags overheated markets as top stability risk
The Federal Reserve’s April financial stability report found that asset valuations remain elevated, even as investors are beginning to demand more compensation for risk amid rising uncertainty around monetary policy.
Appeals judge sends Illinois interchange case back to district court
Banking groups that sued the state of Illinois over its law barring banks from charging interchange fees on taxes and tips cheered an appeals court ruling remanding the law to a lower court and vowed to keep the law going into effect, which is slated for July 1.
Goldman taps Feldgoise, Schiffrin; Fidelity to cut 800 staffers
Stephan Feldgoise and Joshua Schiffrin will join Goldman Sachs’ management committee; Fidelity Investments is dismissing about 800 personnel as it restructures its technology and product-delivery teams; Citi has hired JPMorgan’s André Ross as its country officer and banking head for South Africa; and more in this week’s banking news roundup.
What payment leaders had to say at American Banker’s Payments Forum
Leaders from Wells Fargo, JPMorganChase and more talked about how banks can respond to the fast-moving changes in money movement, new forms of artificial intelligence, fraud, digital assets and more.
Affirm’s Levchin rejects AI layoffs
Affirm CEO Max Levchin said that the company did not have any plans for AI-spurred layoffs despite the fact that it was using the technology more for software engineering.
Jack Dorsey touts Block’s AI-driven restructuring
The payments company posted strong adjusted earnings following a dramatic downsizing, which management attributed to the influence of artificial intelligence.