Citizens will stop lending to firms linked to ICE detention
The regional bank faced months of pressure to end its relationship with CoreCivic and The Geo Group, two of the country’s largest private-prison operators. On Friday, it said it would “exit the credit facilities” it has in place for those companies, attributing the decision to business factors, not pressure from activists.
Fifth Third says it’s using AI to track Comerica conversion
Banks use artificial intelligence to do many different jobs. At Fifth Third, the technology is supervising the biggest post-merger integration in the bank’s history.
PayPal balks at Stripe acquisition offer
PayPal’s board of directors is reportedly unimpressed with Stripe and Advent International’s $53 billion offer to buy the company. Analysts had speculated that the offer may be low, despite the fact that it came in at a 30% premium compared with other merchant processors.
Regulators answered half of banks’ data-security asks
Banks must tell regulators of a serious breach within 36 hours under a codified rule. Regulators say they will tell banks 72 hours of their own data breaches, in a memo nobody can enforce.
Wise bets on its bank workaround to entice investors
By establishing direct connections to clearing networks such as Japan’s central bank, the cross-border payment firm avoids intermediaries, feeding its strategy to undercut traditional financial institutions.
Truist culls some consumer loans, cites long-term strategy
The Charlotte, North Carolina-based bank stopped originating marine and recreational vehicle loans during the second quarter. Executives said the change will reduce net interest income in the short term, but deliver higher profitability over the long run.
How ETF conversions unlock diversification, tax deferral in stock portfolios
Clients with concentrated stock holdings might be better off turning their portfolios into ETFs in a tax deferral transaction called a Section 351 conversion.
OpenUSD has its work cut out if it hopes to challenge incumbent stablecoins
The recently announced consortium of crypto companies behind OpenUSD, a new dollar-denominated stablecoin, will have to demonstrate that it can build partnerships with banks and intermediaries before it can challenge USDC and Tether.
Lumin Digital gets $70 million from bank, credit union users
The customer-sourced investment will continue to support the digital banking provider’s AI and digital loan origination initiatives.
Banks have never had it this good
Banks are posting record profits, benefitting from being in the middle of a hot credit cycle. Everything is going their way. The only question is, how long can it last?