Harassment and drugs plagued a Citigroup division for years
Bankers from Citigroup were partying with clients one night in May 2018 at a downtown Manhattan hot spot called Catch.
Banks need to leverage big data to combat a surge in AI-enabled fraud
Specialized large language models should be harnessed to help financial institutions identify and halt fraudulent activity. The best model would involve regulator-approved pooling of anonymized customer data.
Racist emails becoming focal point in redlining settlements
The Justice Department and the CFPB are increasingly relying on emails among employees that contain discriminatory comments to strengthen their hand in cases against lenders.
FDIC OIG says lax lending, poor risk management led to Iowa bank failure
The FDIC Office of Inspector General attributed the downfall of Citizens Bank in November 2023 to lax lending practices and risk mismanagement by the Lange family, causing a $14.8 million loss to the regulator’s Deposit Insurance Fund. The OIG saw no grounds for a more extensive review.
Citigroup, JPMorgan Chase will disclose new climate metric
The two megabanks have agreed to release a ratio that measures their level of financing for low-carbon energy versus fossil fuels. The banks’ moves follow pressure regarding climate change from entities associated with New York City’s local government.
The challenges unique to managing tech teams
Technology executives at financial institutions must strike a balance between jumping on new technologies while justifying their business case for the bank.
Fed’s Barr working with Powell to find consensus on Basel III
The Federal Reserve’s vice chair for supervision says the board is discussing ways to address the various concerns banks have raised about the capital reform proposal.
Large firms seeking mergers face long odds under proposed FDIC policy
The FDIC’s newly unveiled policy statement on bank mergers could add strain to an already bleak outlook for mergers in the banking industry, particularly for larger banks.
Credit union purchases of banks on pace for record after latest deal
Harborstone Credit Union in suburban Lakewood, Washington, plans to buy Savi Financial. That’s seven deals in less than three months this year; the highest full-year total was 16 in 2022.
M&T Bank creates new chief comms role, Citi cuts investment bank jobs, McKinsey publishes new AI report
M&T Bank creates new chief communications officer role, Citi cuts London investment banking jobs as deal drought persists, new report by McKinsey advises banks to institute AI from headquarters rather than by divisions, and more in our weekly news roundup.