Tag Archives: banking

Wells Fargo Fires 100+ For Seeking Bailout Funds

Bloomberg News reports: Wells Fargo & Co. fired more than 100 employees for improperly getting coronavirus relief funds, according to a person with knowledge of the situation, Bloomberg News reports. The firm found staffers who it believes defrauded the U.S. Small Business Administration “by making false representations in applying for coronavirus relief funds for themselves,” according to an internal memo …

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Federal Reserve Says Coin Shortage Is Due To COVID

NBC News reports: About two weeks ago, Jake Devney started having a hard time getting quarters at the bank. Devney owns Coin Clean Laundry in Minneapolis and usually keeps about five to seven days worth of quarters in their coin vault. “Right now, pretty much every other day we have to go and exchange the quarters. So take them out …

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Deutsche Bank Fined $150 Million For Epstein “Lapses”

Bloomberg News reports: Deutsche Bank AG will pay New York’s banking regulator $150 million for a string of compliance lapses including a half-decade of lax oversight of the financial dealings of convicted sex offender Jeffrey Epstein. New York’s Department of Financial Services provided fresh details Tuesday of Epstein’s money movements in the years before his death. It laid out how …

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ATM Use Plunges As People Fear Handling Cash

Axios reports: People have suddenly stopped using money — of the bill-and-coin variety — for fear it may spread the virus. Some worried shopkeepers have stopped accepting it, too. The coronavirus may have changed our buying and payment habits forever. Online shopping is through the roof, and consumers are rushing to get “contactless” credit and debit cards, which are tapped …

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FBI Warns Hackers Are Targeting Mobile Banking Apps

Via press release from the FBI: The FBI advises the public to be cautious when downloading apps on smartphones and tablets, as some could be concealing malicious intent. Cyber actors target banking information using banking trojans, which are malicious programs that disguise themselves as other apps, such as games or tools. When the user launches a legitimate banking app, it …

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Report: Trump Admin Faked Data On Payday Loans

The New York Times reports: Last summer, on his final day of work at the nation’s consumer finance watchdog agency, a career economist sent colleagues a blunt memo. He claimed that President Trump’s appointees at the Consumer Financial Protection Bureau had manipulated the agency’s research process to justify altering a 2017 rule that would have sharply curtailed high-interest payday loans. …

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Wall Street Firm Pitched 175% Return On Govt Program

Reuters reports: A New York investment firm pitched wealthy investors in recent days on a way to make returns of 22% to 175% using U.S. government programs designed to help Americans keep their jobs and boost the coronavirus-stricken economy, according to a marketing document seen by Reuters. Following questions posed by Reuters, Arcadia Investment Partners LLC, which has about $1 …

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CALIFORNIA: Banks Agree To 90-Day Mortgage Freeze

Courthouse News reports: California Gov. Gavin Newsom delivered a dose of good news for homeowners on Wednesday, announcing the nation’s largest banks will voluntarily freeze mortgage payments for 90 days on families mired in the Covid-19 crisis. Newsom said the agreement is the result of weeks of negotiations with the heads of banks like Wells Fargo, U.S. Bank, JPMorgan Chase …

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Wells Fargo Chair Resigns Ahead Of House Testimony

The New York Times reports: Wells Fargo’s chairwoman, Elizabeth A. Duke, has resigned, the bank announced on Monday, bowing to pressure from Washington ahead of what is likely to be another round of grilling from Congress over its history of deceptive consumer practices. Ms. Duke, who is known as Betsy, resigned on Sunday. She had been the bank’s chairwoman since …

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Federal Reserve Cuts Interest Rate Over Virus Impact

NBC News reports: The Federal Reserve announced an emergency rate cut on Tuesday in response to the viral outbreak, trimming the nation’s benchmark borrowing rate by 0.5 percentage points. The move comes after finance ministers from the G-7 convened via teleconference with Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin to determine an economic strategy to defend against …

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Wells Fargo To Pay $3 Billion In Fake Accounts Scandal

The New York Daily News reports: Wells Fargo will pay $3 billion to settle investigations into its long-running scam that had company employees opening millions of bogus bank accounts in order to meet unrealistic sales goals. Since the fake-accounts scandal was revealed in 2016, the San Francisco-based bank has paid out billions in fines to state and federal regulators, reshuffled …

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Forecast: Credit Card Delinquencies Near 10-Year High

Bloomberg News reports: Americans are projected to fall seriously behind on their credit card bills at the highest rate in a decade as banks push a record number of people to get plastic. The share of credit card borrowers who are at least 90 days past due on their accounts will probably tick up to 2.01% next year, the highest …

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Google To Offer Personal Checking Accounts In 2020

Reuters reports: Alphabet Inc’s Google said on Wednesday it will offer personal checking accounts next year through its Google Pay app in partnership with Citigroup Inc and a small credit union at Stanford University. The project, named Cache, comes as rivals Facebook and Apple are expanding their own efforts in consumer finance, a broad area that ranges from digital payment …

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Major Partners Bail From Facebook’s Cryptocurrency

The Associated Press reports: On Friday, Visa and MasterCard announced their departures from the Libra project, as did e-commerce giant eBay and payments startup Stripe. Last week, PayPal became the first major company to drop out of Libra. The exodus comes amid growing — not to mention stronger-than-anticipated — regulatory pushback against Libra in the U.S. and elsewhere. “It’s a …

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Major Bank Raises Recession Risk To 30% In Next Year

CNBC reports: Recession risk is rising, according to Bank of America. Based on the most recent data, the bank’s global economist now sees a greater than 30% chance of a recession in the next year. “Our official model has the probability of a recession over the next 12 months only pegged at about 20%, but our subjective call based on …

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Hacker Arrested In Massive Capital One Data Breach

The New York Times reports: A software engineer in Seattle hacked into a server holding customer information for Capital One and obtained the personal data of over 100 million people, federal prosecutors said on Monday, in one of the largest thefts of data from a bank. The suspect, Paige Thompson, 33, left a trail online for investigators to follow as …

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Wells Fargo To Pay Customers $386M In Class Action Lawsuit Over Unneeded Charges For Auto Insurance

Reuters reports: Wells Fargo & Co will pay at least $386 million to settle class-action claims by customers who said the bank signed them up for auto insurance they did not want or need when they took out car loans. The settlement was disclosed in filings on Thursday with the U.S. District Court in Santa Ana, California, and requires a …

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AOC/Bernie Bill Would Cap Credit Card Interest At 15%

Axios reports: 2020 candidate Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) — both self-declared Democratic-socialists — will introduce a bill on Thursday to prevent credit card interest rates from rising above 15% and capping consumer loans. Credit cards are one of the most insidious forms of indebtedness. By bundling a loan with a very convenient payments device, banks …

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Warren Trolls Chase Bank For Mocking Its Customers

The Hill reports: Sen. Elizabeth Warren (D-Mass.) trolled Chase Bank after the bank’s attempt at sharing personal finance advice on Twitter was met with backlash. Chase’s original tweet, which has since been deleted, was criticized for appearing to mock people for spending money on things like coffee, food and taxis. In response, Warren sent a tweet mocking Chase in part …

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RUSSIA: Bank Owned By Former Republican House Rep Stripped Of License Over Money Laundering Violations

The Charlotte Observer reports: A Russian bank owned by former North Carolina Congressman Charles Taylor has been accused of money laundering and lost its license. The Commercial Bank of Ivanovo “failed on multiple occasions to comply with Bank of Russia regulations” on money laundering “of criminally obtained incomes and the financing of terrorism,” the Bank of Russia said in a …

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