Ten firms applied for national bank charters during the year ending Sept. 20, the most since 2010, according to the Office of the Comptroller of the Currency. For many financial firms, the disruptions brought by the coronavirus pandemic have highlighted the benefits of having a bank license, such as access to cheaper capital in the form of customer deposits.
JPMorgan Chase has reached an agreement with the Office of the Comptroller of the Currency to pay $250 million for risk management practices that were "deficient" and "lacked sufficient controls to avoid conflicts of interest." The bank's shortcomings were in its asset and wealth management business, the OCC said.
The Office of the Comptroller of the Currency is asking banks for four types of data before finalizing its scoring method for the Community Reinvestment Act. The agency says it will issue a final rule after public comments and the new data are evaluated.
Calls for Democrats to accept a coronavirus aid bill smaller than their $2.2 trillion proposal are picking up as President-elect Joe Biden indicates he wants to see an agreement by year-end. Former treasury secretaries from both parties have appealed to Congress to act immediately.
With the likely arrival of a coronavirus vaccine and Treasury Secretary Steven Mnuchin's decision to let some emergency aid programs end, the Federal Reserve must now decide how it will manage the transition to a post-coronavirus world.
Executives from banks that have partnered with Google Pay say the move will boost their technology offerings and ability to scale. "While some may fear the Googles and Amazons, we welcome them as ecosystem partners," said Elyse Lesley, head of US consumer partnerships and franchise development at Citigroup. "We view this as an opportunity to scale our franchise."
The Senate Banking Committee will hear testimony from Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin on Dec. 1 about the effects of emergency measures enacted to offset the coronavirus pandemic. It will be their first joint appearance before lawmakers since Mnuchin announced the end of several Fed coronavirus relief programs.
Large and regional banks are striving to keep branches open amid a widespread resurgence of coronavirus cases, but some smaller banks have begun seeing customers by appointment only. JPMorgan Chase, Bank of America, Citigroup and Wells Fargo say they are evaluating branch closures on a case-by-case basis.
As bitcoin moved closer to its record high Monday, two smaller cryptocurrencies, Ethereum and XRP, also posted big gains. The two digital currencies often follow bitcoin but are more volatile because they have less liquidity.
The US Treasury risks harming ordinary Americans with its attempt to rein in the Federal Reserve's market support measures before alternative mechanisms are ready, writes the Financial Times editorial board.
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