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☆ NRA: Supreme Court to weigh claim that New York pressured businesses to cut ties with gun rights group
▼ + stars: | 2024-03-18 | by ( John Fritze | ) edition.cnn.com time to read: +4 min

CNN —The Supreme Court will hear arguments Monday in an unusual First Amendment appeal from the National Rifle Association against a New York financial regulator who persuaded banks and insurance companies to sever ties with the gun rights group. The danger, she said, is that regulators in both red and blue states could start leaning on insurance companies and banks to drop coverage for disfavored advocacy groups or companies. Critics dubbed the policies “murder insurance.”If other insurance companies distanced themselves from the NRA, Vullo argues, it was because they no longer wanted to do business with the group. The Supreme Court held that such “informal censorship” was unconstitutional. The Supreme Court will hear a related case Monday, one that implicates the White House, federal agencies and social media.

Persons: Maria Vullo, ”, Caroline Fredrickson, ” Fredrickson, ” Vullo, Vullo, Andrew Cuomo’s, Denny Chin, “, Sullivan, Biden Organizations: CNN, National Rifle Association, New, NRA, New York Department of Financial Services, Georgetown, “, Democratic, Gov, Vullo, US, Bantam, Rhode Island, Republican Locations: New York, Parkland , Florida, London

☆ Crypto exchange Gemini to pay $1.1 billion back to customers
▼ + stars: | 2024-02-29 | by ( Juliana Liu | ) edition.cnn.com time to read: +2 min

CNN —Gemini Trust, a cryptocurrency exchange founded by Cameron and Tyler Winklevoss, will return at least $1.1 billion to customers of its now shuttered lending program, following a settlement with a New York regulator. NYDFS has the right to “bring further action against Gemini if the company does not fulfill its obligation,” it said in the statement. In a Wednesday blog post, the crypto exchange said that due to the settlement, customers of its lending program, Gemini Earn, would receive 100% of their digital assets back in kind plus any appreciation in value. Gemini Earn marketed itself as a low-risk investment in which customers could lend crypto assets to another firm, Genesis Global Capital (GGC), while earning interest payments as high as 8%. That was when the trillion-dollar crypto market crumbled, due to the collapse of FTX, the once high-flying crypto exchange.

Persons: Cameron, Tyler Winklevoss, NYDFS, Meta’s, Mark Zuckerberg, Sam Bankman, Fried Organizations: CNN, Gemini Trust, Gemini, New York Department of Financial Services, Facebook, Genesis Global, Bankman, New, GCC, Digital Currency Group Locations: New York, FTX, Manhattan

Sept 19 (Reuters) - Bitcoin isn't the only asset experiencing a late summer slump. It has shrunk by almost a tenth this year, standing at $124.4 billion as of Sept. 14. A jump in the dollar index on interest rate hikes last year was accompanied by a big rise in stablecoin volumes, he added. Yet all is not equal: Dollar-pegged Tether, the biggest stablecoin, is bucking the losing trend. Reporting by Hannah Lang in Washington; Editing by Michelle Price and Pravin CharOur Standards: The Thomson Reuters Trust Principles.

Persons: James Butterfill, CoinGecko, Paolo Ardoino, Paxos, USDC, TerraUSD, Dante Disparte, it's, Hannah Lang, Michelle Price Organizations: U.S ., New York Department of Financial Services, U.S, Silicon, Bank —, Thomson, Reuters Locations: South America, Central Asia, U.S, Washington

☆ Nasdaq pauses crypto custody plans citing the 'shifting' regulatory climate
▼ + stars: | 2023-07-19 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +1 min

Nasdaq is pausing its plans to release a crypto custody business, CEO Adena Friedman said on the company's earnings call Wednesday. "However, we continue to build and deliver technology capabilities that position Nasdaq as a leading digital asset software solutions provider to the broader global industry." Nasdaq still provides the company listing for Coinbase and filed the paperwork for recent bitcoin ETF applications from BlackRock and others. The exchange operator first revealed plans to develop the custody solution in September along with the formation of its crypto business, Nasdaq Digital Assets. Efforts have been underway this year to create new solutions that decouple the trading and custody functions of crypto exchanges.

Persons: Adena Friedman, we've, Coinbase, Friedman Organizations: Nasdaq, Nasdaq Digital Assets, New York Department of Financial Services Locations: BlackRock

☆ 'Lots of smoke. Lots of questions': Internal emails show JPMorgan Chase execs worried about the bank's ties to Jeffrey Epstein. So why did it take so long to cut him loose?
▼ + stars: | 2023-06-23 | by ( Kaja Whitehouse | Emmalyse Brownstein | ) www.businessinsider.com time to read: +29 min

That, of course, is the billion-dollar question: What did JPMorgan, America's largest bank, know about Epstein's alleged sex trafficking? Today, banks have entire departments dedicated to tracking client activity and flagging suspicious behavior. Lots of questions'The fuss JPMorgan compliance officers raised about Epstein in 2011 was extensive. Lots of questions," declared a senior JPMorgan compliance officer reviewing Epstein's accounts as part of that 2011 compliance review, according to court papers filed by the US Virgin Islands. Staley sent Epstein internal JPMorgan documents and relied on him for guidance on an array of business and personal dealings, the JPMorgan internal report shows.

Persons: —, Morgan Stanley, Lehman Brothers —, Jamie Dimon, Jeffrey Epstein, Leon Black, Bill Clinton, Donald Trump, Epstein, Jes Staley, Staley, Jeffrey Epstein's, Michelle Licata, Courtney Wild, Stephanie Keith, Jane Doe, JP Morgan —, Epstein —, jes staley, Patricia Wexler, Wexler, Dimon, Barry Krischer, JPMorgan, Ghislaine Maxwell, Rod Stewart, Cipriani, Joe Schildhorn, Patrick McMullan, Frank Haberstroh, Haberstroh, Les Wexner, Wexner, Tom Williams, JP Morgan, Little, Little Saint James, Epstein's, Jim Spellman, Staley didn't, Morgan, James, Emily Michot, Bill Gates, Larry Summers, Woody Allen, Stephen Cutler, Cutler, Mary Erdoes, Erdoes, Youngbee Dale, Dale, JPMorgan Chase, Michael M, NYDFS, Bernie Madoff, Cecile de Jongh, Joe Shmoe, Jacob Shamsian Organizations: JPMorgan, Highbridge Capital Management, Citigroup, Lehman Brothers, titans, Apollo, US, US Virgin Islands, Bloomberg TV, Financial, US Department of, Treasury, Getty, BSA, Polaris Market Research, United Nations University Centre, M2C Model, Palm, JPMorgan Chase, Washington D.C, Inc, Apollo Global Management, The New York Times, Little Saint, Virgin, U.S ., Miami Herald, Tribune, Service, Microsoft, Columbia University, Mountain Capital, DOJ, New, Deutsche Bank, New York Department of Financial Services, Virgin Islands, Barclays, Authority, Wall Street Journal Locations: York, Manhattan, New York, US Virgin, dimon, Palm Beach , Florida, New York City, UN, Paris, Washington, Prague, thomas, Wexner, Little Saint, I'm, Little St, U.S, U.S . Virgin Islands, Staley, Dimon's, Virgin, British

☆ JPMorgan Chase's drawn-out breakup with Jeffrey Epstein
▼ + stars: | 2023-06-23 | by ( Kaja Whitehouse | Emmalyse Brownstein | ) www.businessinsider.com time to read: +29 min

Several months later, in October 2006, JPMorgan categorized Epstein as a "high-risk" client, according to a transcript of Dimon's deposition in May. Today, banks have entire departments dedicated to tracking client activity and flagging suspicious behavior. Lots of questions'The fuss JPMorgan compliance officers raised about Epstein in 2011 was extensive. A 'faithless servant'One person who might know much more about the tangled relationship between Epstein and JPMorgan is Jes Staley. Staley sent Epstein internal JPMorgan documents and relied on him for guidance on an array of business and personal dealings, the JPMorgan internal report shows.

Artificial intelligence algorithms are increasingly being used in financial services — but they come with some serious risks around discrimination. And the problem of amplifying existing biases can be even more severe when it comes to banking and financial services. As for financial services, Manji said a lot of the backend data systems are fragmented in different languages and formats. "Individuals have little knowledge of how AI systems work and that their individual case may, in fact, be the tip of a systems-wide iceberg. Among the top worries industry insiders expressed are misinformation; racial and gender bias embedded in AI algorithms; and "hallucinations" generated by ChatGPT-like tools.

Persons: Nabil Manji, Manji, they've, we're, You've, Banks, Banking's, Rumman Chowdhury, Twitter's, Chowdhury, Angle Bush, Bush, Frost Li, Li, Niklas Guske, Guske, it's, Goldman Sachs, Kim Smouter, Smouter, ethicists Organizations: Photodisc, Getty, Deloitte, CNBC, Microsoft, Google, Black, Artificial Intelligence, Tokyo University, Apple, New York Department of Financial Services, European Network, United Nations Locations: AMSTERDAM, Worldpay, Amsterdam, Chicago, Loup, United

☆ Monitoring Financial Institution Compliance
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +41 min

Compliance MonitorshipsA compliance monitor (also called an independent examiner or independent compliance consultant) is an impartial party appointed by the government to detect the root causes of the institution’s compliance failures. The purpose of a compliance monitor is not to address a particular compliance failure or punish the institution. Responded to compliance issues, in a timely manner and in a way that demonstrates that the institution takes compliance issues seriously. Compliance Department EmployeesThe monitor must evaluate the adequacy of compliance department employees, including the number of compliance employees, their experience, and their expertise. Assess the Compliance SystemsThe monitor typically engages compliance technology experts, who have specific knowledge of coding and compliance technology software, to test and evaluate the institution’s compliance systems.

☆ Warren unveils bill to repeal Trump-era bank deregulation she says led to SVB, Signature collapses
▼ + stars: | 2023-03-14 | by ( Christina Wilkie | ) www.cnbc.com time to read: +2 min

Senator Elizabeth Warren (D-MA) speaks to reporters about codifying gay marriage on Capitol Hill in Washington, September 15, 2022. WASHINGTON — A group of Democratic senators introduced new legislation Tuesday to repeal Trump-era bank deregulations they say created the conditions that allowed for the dramatic collapse of Silicon Valley Bank and the closure of Signature Bank since Friday. Right away, mid-sized banks, including SVB, began lobbying Congress for an exemption from the tighter oversight rule. On the Senate floor Tuesday, Democratic Sen. Elizabeth Warren, Mass., drew a straight line from the 2018 deregulation effort to the 2023 failure of SVB and Signature. "The weakened rules permitted banks like SVB and Signature to load up on risks, run up their profits, pay their executives, giant bonuses, and eventually blow the banks to pieces," said Warren.

☆ Binance CEO reaffirms support for Voyager deal amid SEC pushback
▼ + stars: | 2023-03-03 | by ( ) www.reuters.com time to read: +1 min

[1/2] Zhao Changpeng, founder and chief executive officer of Binance, at the Viva Technology conference in Paris, France June 16, 2022. REUTERS/Benoit TessierMarch 3 (Reuters) - Binance Chief Executive Officer Changpeng Zhao on Friday reiterated support for the exchange's U.S. partner to acquire Voyager Digital, after an earlier tweet indicated he was weighing walking away from the offer. Voyager, a crypto lender which went bankrupt last year, signed an agreement to be acquired by Binance.US in December. But the U.S. Securities and Exchange Commission (SEC) and the New York Department of Financial Services later opposed the deal. "We are still in support of the deal and helping returning funds to users as quickly as possible, if allowed to do so," Zhao tweeted.

The proposed deal may violate laws on the unregistered offer and sale of securities, the SEC said in a filing on Wednesday. It also cited news reports of U.S. investigations into the global Binance crypto exchange, of which Binance.US is a purportedly independent partner, that mean the deal could become "impossible to consummate." New York's top financial regulator and New York Attorney General Letitia James also objected to the deal in filings on Wednesday. The New York Department of Financial Services said that Voyager "illegally operated a virtual currency business within the state without a license." The U.S. Justice Department is investigating the global Binance exchange for possible money laundering and sanctions violations, Reuters reported in December.

☆ Analysis: Stablecoin regulatory crackdown sends warning to industry
▼ + stars: | 2023-02-22 | by ( Hannah Lang | ) www.reuters.com time to read: +5 min

But usage is raising questions from regulators who have expressed concern about the disclosures stablecoin issuers provide, as well as the tokens' potential instability during periods of stress. While the crypto industry has criticized the SEC's broad industry crackdown, the move against Binance USD, the third-biggest stablecoin with about $16 billion in circulation, could lend some guidelines for which stablecoin activities may get scrutinized. SEC Chairman Gary Gensler has previously said he believes some stablecoins are in fact securities, which require registration and additional regulatory oversight. The New York Department of Financial Services also ordered Paxos last week to stop minting Binance USD. But the specific features of tokens like Binance USD have some stablecoin issuers keen to highlight their differences.

☆ Binance Hires Gemini Executive as Chief Compliance Officer
▼ + stars: | 2023-02-14 | by ( Mengqi Sun | ) www.wsj.com time to read: +2 min

Binance said Noah Perlman has joined as its chief compliance officer from rival Gemini Trust Co., as the cryptocurrency exchange continues to beef up its legal and compliance team amid regulatory scrutiny. Mr. Perlman joined Binance last month after serving as Gemini’s chief operating officer for more than two years. He joined Gemini as its chief compliance officer in 2019. Mr. Perlman’s appointment ends a monthslong search for a compliance chief at Binance, which over the past year or so has been bolstering its compliance team head count. Binance Chief Executive Changpeng Zhao, known as CZ, said on Twitter in September that the exchange planned to hire a few hundred more compliance people.

☆ Crypto: Regulators are cracking down as FTX fallout casts a shadow over digital assets
▼ + stars: | 2023-02-14 | by ( Allison Morrow | ) edition.cnn.com time to read: +5 min

New York CNN —When FTX collapsed in November, it was a seismic event for the crypto industry. On Monday, New York regulators ordered blockchain firm Paxos to stop issuing BUSD, aka Binance USD, citing “several unresolved issues” related to Paxos’ oversight of its relationship with crypto exchange Binance. Investors typically buy them to store money and facilitate deals within the cryptocurrency infrastructure, making them a bedrock of the crypto ecosystem. “Regulation by enforcement is puzzling for crypto enthusiasts,” said Marcus Sotiriou, market analyst at digital asset broker GlobalBlock, in a note. In January, regulators warned US banks and other market participants about the risks of fraud, volatility, and shoddy risk management in the crypto world.

☆ Regulator Orders Crypto Firm Paxos to Stop Issuing Binance Stablecoin
▼ + stars: | 2023-02-13 | by ( Patricia Kowsmann | Caitlin Ostroff | ) www.wsj.com time to read: 1 min

BUSD, also known as Binance USD, is a stablecoin backed by U.S. dollars on a one-to-one basis. New York regulators directed a crypto company to stop issuing one of the largest dollar-pegged cryptocurrencies, as a government clampdown on the sector widens. The New York Department of Financial Services ordered Paxos Trust Co., which issues and lists Binance’s dollar-pegged cryptocurrency, to stop creating more of its BUSD token, Binance said in a statement. Paxos will continue to manage redemptions of the product, the crypto exchange added.

☆ Crypto Firm Paxos to Stop Issuing Dollar-Pegged Binance Token
▼ + stars: | 2023-02-13 | by ( Patricia Kowsmann | Caitlin Ostroff | ) www.wsj.com time to read: 1 min

New York regulators directed a crypto company to stop issuing one of the largest dollar-pegged cryptocurrencies, as a government clampdown on the sector widens. The New York Department of Financial Services ordered Paxos Trust Co., which issues and lists Binance’s dollar-pegged cryptocurrency, to stop creating more of its BUSD token. Paxos will continue to manage redemptions of the product, according to a Binance statement.

REUTERS/Dado Ruvic/IllustrationLONDON, Feb 13 (Reuters) - New York's chief financial regulator has ordered Paxos, the company behind the stablecoin of major crypto exchange Binance, to stop issuing the token, Paxos said in a statement on Monday. The Binance USD (BUSD) stablecoin, one of the world's biggest, is issued and redeemed by New York-based Paxos Trust Company, both of which are regulated by the New York Department of Financial Services. Paxos said it would stop issuing new BUSD as of Feb. 21 "as directed by and working in close coordination with the New York Department of Financial Services". Binance USD is the seventh-largest cryptocurrency, with more than $16 billion in circulation, according to market tracker CoinGecko. Zhao said Binance would "continue to support BUSD for the foreseeable future" and that he saw users "migrating to other stablecoins over time."

☆ Paxos ordered to cease minting Binance stablecoin by New York regulator
▼ + stars: | 2023-02-13 | by ( Rohan Goswami | ) www.cnbc.com time to read: +3 min

Cryptocurrency firm Paxos will cease issuing new Binance USD, or BUSD , stablecoins under the direction of New York state's financial regulator, Binance founder Changpeng Zhao said Monday. "We were informed by Paxos they have been directed to cease minting new BUSD by the New York Department of Financial Services," Zhao said on Twitter. Paxos' BUSD product is related to, but separate from, Binance's self-issued Binance-pegged BUSD. "The Department has not authorized Binance-Peg BUSD on any blockchain, and Binance-Peg BUSD is not issued by Paxos," NYDFS said. Last week, the Securities and Exchange Commission settled with crypto exchange Kraken over allegations of unregistered offering and sale, in connection with Kraken's crypto staking platform.

☆ Deutsche Bank Names New Compliance Chief as Part of Reshuffle
▼ + stars: | 2023-01-19 | by ( Mengqi Sun | ) www.wsj.com time to read: +3 min

Laura Padovani will join Deutsche Bank on April 1 as its group chief compliance officer and head of compliance, according to a memo seen by The Wall Street Journal. Ms. Padovani spent seven years at Barclays, most recently as its compliance chief, and 20 years at American Express. Mr. Tagné, who has spent more than six years at Deutsche Bank, will also take on the role of deputy chief compliance officer, according to the memo. Germany’s top financial watchdog, BaFin, in November threatened to fine Deutsche Bank if it didn’t implement controls against money laundering by mid-2023. Deutsche Bank was fined $150 million in 2020 by the New York Department of Financial Services for failing to properly monitor its dealings with Epstein.

☆ Coinbase Layoff Ax Won’t Fall on Compliance Team
▼ + stars: | 2023-01-12 | by ( Richard Vanderford | ) www.wsj.com time to read: +2 min

Wide-scale layoffs at Coinbase Global Inc. won’t significantly impact its compliance team, as the cryptocurrency exchange remains under a New York regulator’s watch after recently settling allegations it violated anti-money-laundering laws. Coinbase wants to cut operating expenses by 25% and plans to lay off about 950 people, Chief Executive Brian Armstrong said Tuesday. A spokeswoman for the company, asked whether the departures would impact the exchange’s risk, compliance or legal teams, said there won’t be “meaningful” layoffs in key roles. Newsletter Sign-up WSJ | Risk and Compliance Journal Our Morning Risk Report features insights and news on governance, risk and compliance. The exchange in the settlement agreed to spend another $50 million to improve its compliance program over the next two years.

☆ Stocks making the biggest moves premarket: Silvergate Capital, Walgreens, Amazon and more
▼ + stars: | 2023-01-05 | by ( Sarah Min | ) www.cnbc.com time to read: +3 min

People walk by a Walgreens, owned by the Walgreens Boots Alliance, Inc., in New York City, November 26, 2021. Check out the companies making headlines and moves in premarket trading. Walgreens Boots Alliance — The drugstore stock fell about 2% in premarket even after the company reported fiscal first quarter earnings that beat analyst estimates. Western Digital — Shares jumped more than 5% after Western Digital and Japan's Kioxia Holdings resumed merger talks, according to a Bloomberg News report that cited sources familiar with the matter. American Express — The stock fell 1.48% in the premarket after being downgraded by Stephens on Thursday to underweight from equal weight.

Popular cryptocurrency exchange Coinbase announced an agreement Wednesday to pay $50 million to resolve a New York investigation into lapses concerning its anti-money laundering and know-your-customer practices. "That failure exposed the Coinbase platform to potential criminal activity requiring the Department to take immediate action including the installation of an Independent Monitor,” she said. In one instance, a former Coinbase customer who had been criminally charged with crimes related to child sexual abuse material conducted suspicious transactions potentially associated with illicit activity on the exchange. (Eventually, Coinbase discovered the activity and with the help of law enforcement recovered the funds.) In a statement on its website, Coinbase acknowledged the $100 million settlement and outlined other steps it was taking to address the lapses.

☆ Coinbase settles with New York state financial regulator for $100 million, stock spikes
▼ + stars: | 2023-01-04 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

Coinbase signage in New York's Times Square during the company's initial public offering on the Nasdaq on April 14, 2021. Coinbase settled a case with New York's state financial regulator, the parties announced Wednesday, and will pay a $50 million fine and invest a further $50 million in compliance efforts. Regulators from the New York Department of Financial Services said the company had longstanding failures in its anti-money laundering program. "This agreement includes a $50 million penalty and a separate commitment from Coinbase to invest $50 million in our compliance program over two years," Coinbase Chief Legal Officer Paul Grewal said in a statement. Regulators wrote that Coinbase's compliance shortcomings led to "suspicious or unlawful conduct being facilitated through Coinbase's platform," according to the consent order.

☆ Coinbase is paying a $50 million fine over allegations it fell behind on a mountain of internal warnings
▼ + stars: | 2023-01-04 | by ( Sindhu Sundar | ) www.businessinsider.com time to read: +3 min

Coinbase is paying a $50 million fine after a New York agency found fault with its crypto platform. It will also invest $50 million into improving its own vetting of customers and transactions. Coinbase said it has taken "substantial measures" to improve its monitoring tech and protocols. The settlement, which the New York Department of Financial Services disclosed on Wednesday, includes a $50 million fine, and also calls for Coinbase to spend another $50 million on a monitoring plan overseen by the agency. Coinbase, a crypto exchange founded in 2012, has more than 100 million users on its platform.

☆ Stocks making the biggest moves midday: Wynn Resorts, Microsoft, Honeywell, Salesforce and more
▼ + stars: | 2023-01-04 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

The Wynn Resorts logo stands illuminated as people sit by the fountain at the Wynn Macau casino resort in Macau, China, on Tuesday, July 24, 2018. Check out the companies making the biggest moves midday:Wynn Resorts — The casino operator's stock jumped nearly 7%, building on its solid start to 2023. Salesforce — Shares of the cloud-based software company jumped more than 3% after Salesforce announced that it is cutting 10% of its personnel and reducing some office space as part of a restructuring plan. Celanese — The global chemical and specialty materials company jumped more than 6% after being upgraded by RBC Capital Markets to outperform from sector perform. The firm cited the solar company stock's "steep drop from the initial euphoria created by the Inflation Reduction Act."

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