Using an ethical hacker to test cybersecurity arrangements can be a good idea, as long as that hacker has verified credentials and professional standing, writes Sam Bocetta. He describes five steps for improving security, including using a virtual private network, which encrypts all data sent and received, even when employees work off-site.
US Treasury Secretary Steven Mnuchin has told lawmakers proposals to introduce a financial-transaction tax on certain trades could harm capital markets. "I am very concerned that that would destroy our capital markets, and the cost to American holders of mutual funds would bear the majority of the cost," Mnuchin said.
The merger of BB&T and SunTrust banks into Truist is complete and now top executives Kelly King and Bill Rogers are working out details that include cost-cutting measures and the chance to identify new sources of revenue while keeping an eye on making things simple for consumers. "The vast majority of our customers -- their checking, savings, money market accounts -- there won't be any account changes, no routing number changes," said King, now CEO of the merged bank.
The Financial Stability Oversight Council under its new rules has the authority to issue "nonbinding recommendations" to state insurance regulators if it concludes that an insurer big enough undermine the stability of the financial system is getting in trouble. It also is authorized to tell the public why it made those recommendations.
Some Democrats are concerned that a proposed 36% rate cap on loans proposed in a bill by Rep. Jesús "Chuy" Garcia, D-Ill., would keep some of their constituents from getting credit. FDIC Chair Jelena McWilliams said a national cap could keep a "significant portion of small-dollar borrowers" from getting credit.
A man President Donald Trump personally chose to serve on the Federal Reserve Board of Governors has died at the age of 69. Marvin Goodfriend testified before the Senate Banking Committee but no vote was taken for his nomination for the seat, which remains open.
A paper published in the Financial Review concludes that when selecting funds to hold investments within their 401(k) plans, many people select the options at the top of an alphabetical list. "It's absolutely amazing how powerful this effect is and how much it is really distorting what's being invested in," said one of the paper's authors, Jesse Itzkowitz.
The Office of the Comptroller of the Currency is expected to release a Community Reinvestment Act plan this week and many questions remain. The potential changes could include a more transparent grading process and a new definition of "low-to-moderate" income.
Members of a Russian hacking group called Evil Corp. are being sought by the US for allegedly stealing at least $100 million from banks and corporations in more than 40 countries. The Justice and Treasury departments announced indictments and sanctions against the group, which used malware spread through phishing campaigns to steal bank account login credentials and transfer funds.
US Treasury Secretary Steven Mnuchin says he and Federal Reserve Chairman Jerome Powell agree there is no need for the central bank to introduce a digital currency. Mnuchin says that he has no problem with Facebook creating a digital currency but that it must comply with rules on money laundering and bank secrecy.
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