A new era of bank runs demands a new regulatory approach (Part 2)
After a 2023 that witnessed several significant bank failures, here’s how bank regulators should be thinking about the danger of bank runs, and structuring their supervision, going forward.
Wells Fargo gives $1,000 bonus to its lower-paid employees
Workers are eligible for the one-time cash grants if they earned a salary of less than $75,000 last year, and their total cash compensation was less than $85,000. The payments come amid a unionization push at the San Francisco-based megabank.
Banks see mixed signals, reporting challenges in GSIB surcharge proposal
While less disputed than the Basel III endgame, the Federal Reserve’s proposed framework for measuring and offsetting systemic risk within the nation’s largest banks has sparked its own debate about what needs to be reported and the Fed’s desired policy outcome for foreign subsidiaries.
Banc of California mulls more loan sales after PacWest deal
The Los Angeles company has sold $6 billion of loans and securities since buying PacWest in November. CEO Jared Wolff said it might get smaller still as it strives to boost profitability.
JPMorgan shuffles top execs, rekindling succession speculation
Several of the company’s top leaders, including Jennifer Piepszak, have been given new duties in CEO Jamie Dimon’s latest management reorganization. Piepszak and JPMorgan President Daniel Pinto are among those viewed as potential successors to long-serving Dimon.
Bread cuts expenses as charge-offs rise sharply
Economic headwinds causing charge-offs and rising delinquencies — along with potential credit card late-fee restrictions — darken the company’s 2024 forecast.
Anchorage Digital Bank to bring block trading to advisors
The San Francisco technology company is partnering with Onramp Invest to offer registered investment experts tools for facilitating larger digital asset transactions.
Sallie Mae eyes market-share gains after Discover exits student lending
The private student loan market is in flux after one major lender, Discover Financial Services, said it’s leaving the sector. Sallie Mae is gearing up to compete for that business, much as it did when Wells Fargo pulled up stakes in 2020.
The tech Upgrade plans to use to keep AI-based lending fair
As regulators repeatedly press banks and fintechs to make sure their artificial intelligence models aren’t “black boxes” and comply with existing law, the burden is on lenders to prove they are making such efforts.
Borrowing from Fed emergency tool likely jumped before rate hike
Activity from the Bank Term Funding Program has spiked by roughly $50 billion since November, when its rate fell below the level where institutions could earn money by keeping reserves at the central bank.