Industry News
Banking
Top stories summarized by our editors
2/26/2021

JPMorgan Chase continues to target merger and acquisition deals with "perhaps a greater sense of urgency," CFO Jennifer Piepszak told an investor conference. "There are businesses like asset management where scale matters even more than it did a year ago. And then other businesses where the need to move quickly and to innovate quickly to keep up with competition is certainly accelerating," Piepszak said.

2/26/2021

Thasunda Brown Duckett will leave her post as CEO of JPMorgan Chase's consumer banking unit to take over as head of financial services firm TIAA. Duckett led an initiative to grow the bank's US network to 4,900 branches and was the first Black woman to be named to its operating committee.

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Reuters
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Thasunda Brown Duckett, TIAA
2/26/2021

Several public discussions of the GameStop trading frenzy have highlighted the role of Robinhood and the practice of payment for order flow. Ken Griffin, CEO of Citadel Securities, which pays Robinhood for order flow, said the arrangement is approved by the Securities and Exchange Commission but if regulators want to change the rules, "that's fine with us."

2/26/2021

Sen. Kevin Cramer, R-N.D., is introducing legislation aimed at codifying the "fair access" rule on banks, a Trump administration proposal that was tabled when the Biden administration took over. The rule would prevent banks from refusing to lend to certain industries, such as fossil fuel companies and gun manufacturers.

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The Hill
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Sen. Kevin Cramer, Senate
2/26/2021

Katherine Tai, President Joe Biden's nominee for US trade chief, told the the Senate Finance Committee that China will be expected to fulfil all commitments in the Phase 1 trade agreement it made with the US. Discussing China at her nomination hearing, Tai spoke of the country as "an outsized player whose cooperation we'll also need to address certain global challenges," which suggests she will take a more measured approach in some areas but maintain the previous administration's tough line.

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Senate Finance Committee
2/26/2021

Toronto-Dominion Bank will shutter 82 of its US branches, with the majority of the closings scheduled for April, according to Greg Braca, chief executive of the firm's TD Bank US unit. The move follows an evaluation of branch locations and potential redundancies, he said.

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TD Bank, Toronto-Dominion Bank
2/26/2021

The majority of "non-pass" syndicated loans are held by nonbanks and the banking industry has more loan-loss reserves and better risk management than it did in 2008, according to a report on leverage loans released by Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency. Large syndicated loans have a higher risk now because of the effects of the coronavirus pandemic, regulators said.

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Reuters
2/26/2021

The Federal Reserve's financial services outage Wednesday was due to an "internal error" and was not a cyberattack, Fed officials said. The Fed has given no additional details on the outage, which halted transactions by financial institutions for several hours.

2/26/2021

Senate banking committee chairman Sherrod Brown, D-Ohio, will propose a plan that would allow consumers who are not served by a commercial bank to open banking accounts at post offices and credit unions. The proposal is part of a push by Democrats to revise the child tax credit and issue monthly checks to parents.

2/25/2021

The banking industry is continuing to support Black-owned banks and businesses with loan and grant programs. JPMorgan Chase said this week it will commit $40 million to Black-run banks and has joined five other banks in facilitating the $435.4 million acquisition of CFBanc by Broadway Financial.