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☆ Why JPMorgan Chase is prepared to sue the U.S. government over Zelle scams
▼ + stars: | 2024-09-27 | by ( Hugh Son | ) www.cnbc.com time to read: +7 min

The lender disclosed that the Consumer Financial Protection Bureau could punish JPMorgan for its role in Zelle, the giant peer-to-peer digital payments network. In response, JPMorgan issued a thinly veiled threat: "The firm is evaluating next steps, including litigation." Trade groups say that in the aftermath of the financial crisis, banks became easy targets for populist attacks from Democrat-led regulatory agencies. Amid the scrutiny, the bank began warning Zelle users on the Chase app to "Stay safe from scams" and added disclosures that customers won't likely be refunded for bogus transactions. While all of these battles are ongoing, the financial industry has racked up several victories so far.

Persons: JPMorgan Chase, Jamie, Evelyn Hockstein, Tobin Marcus, Joe, Marcus, That's, Biden, Marianne Lake, Zelle, Banks, Jamie Dimon, Dimon, Donald Trump, Kamala Harris, Mark Pittman Organizations: JPMorgan, U.S . Senate Banking, Housing, Urban Affairs, Wall, Capitol, Washington , D.C, Reuters, JPMorgan Chase, Consumer Financial, Democrat, Republican, Wolfe Research, Services, PayPal, Bank of America, Senate, Electronic, Federal Reserve, U.S . Chamber of Commerce, Northern, Northern District of Texas Locations: Washington ,, Zelle, Basel, Wells Fargo, Northern District

"We need much more European big players, and I think Mistral AI can be one of them," Macron said of France's leading AI company. Macron also praised H, the newly launched French AI startup that announced this week it had raised a massive $220 million from its initial round of financing. He compared allowing American tech giants to operate under U.S. regulations while in Europe, to allowing a French bank in the United States to ignore American banking regulations. When it comes to China, however, Macron implied that he thought some U.S. tech regulations had gone too far. "Look, I think China is a competitor when you speak about trade, innovation and economy.

Persons: Emmanuel Macron, Macron, CNBC's Andrew Ross Sorkin Organizations: France —, Microsoft, CNBC, European, EU Artificial Intelligence, European Union, Google, TikTok Locations: PARIS, France, France — Europe, China, United States, U.S, Paris, Mistral, Europe, Washington, Brussels

☆ Fintech nightmare: 'I have nearly $38,000 tied up' after Synapse bankruptcy
▼ + stars: | 2024-05-22 | by ( Hugh Son | ) www.cnbc.com time to read: +4 min

The situation deteriorated in April after Synapse declared bankruptcy following the exodus of several key partners. That has left users of several fintech services stranded with no access to their funds, according to testimonials filed this week in a California bankruptcy court. One customer, a Maryland teacher named Chris Buckler, said in a May 21 filing that his funds at crypto app Juno were locked because of the Synapse bankruptcy. Synapse had contracts with 20 banks and 100 fintech companies, resulting in about 10 million end users, according to an April filing from founder and CEO Sankaet Pathak. The freeze-up of customer funds exposes the vulnerabilities in the banking as a service, or BAAS, partnership model and a possible blind spot for regulatory oversight.

Persons: Andreessen Horowitz, Chris Buckler, Buckler, Dave, Juno, Sankaet Pathak, Pathak, Joseph Dominguez, Dominguez, Jason Mikula, Mikula Organizations: Istock, Synapse, Evolve Bank & Trust, Mercury, CNBC, Evolve Bank, Trust, Regulators, FDIC, Federal Reserve Locations: California, Maryland, Joseph Dominguez of Sacramento , California, Silicon

☆ Monzo: 2024 CNBC Disruptor 50
▼ + stars: | 2024-05-14 | by ( Cnbc.Com Staff | ) www.cnbc.com time to read: +2 min

As a digital-only bank, Monzo operates entirely within a mobile app. In September, the company partnered with BlackRock , the asset management giant, to offer three funds to Monzo customers. Founded in 2015, it has more than nine million customers, making it the largest digital bank in the U.K. and the seventh largest U.K. bank by customers. In March, Monzo raised $430 million in a new round of funding led by CapitalG, the venture arm of Alphabet. It appointed Conor Walsh, a former executive at Block's Cash App division, as the CEO at Monzo U.S. in October.

Persons: Monzo, neobanks, Starling, —, CapitalG, Conor Walsh, Anil Organizations: BlackRock, Starling Bank, Zopa, Sutton Bank, Monzo, Financial Times Locations: Monzo, U.S

☆ Opinion: Why crypto was the perfect tool for criminals and kleptocrats
▼ + stars: | 2023-12-02 | by ( Opinion Casey Michel | ) edition.cnn.com time to read: +6 min

CNN —The news last week of money laundering charges against crypto exchange Binance and its CEO, Changpeng Zhao, sent shockwaves through both financial markets and crypto consumers alike. But for those familiar with the history of modern money laundering, they’re hardly surprising. Over and again, everything from Manhattan high-rises to Malibu beachfronts to Midwest manufacturing plants have allegedly housed illicit wealth, easily and anonymously. But crypto was also, in many ways, the perfect tool for kleptocrats and criminals trying to dodge sanctions and duck investigators. Like banks, real estate and more before it, the best days of the crypto industry as a haven for money laundering may yet be behind it.

Persons: Casey Michel, Changpeng Zhao, Zhao, ”, Versha Sharma, Hamas’s Al, they’re, —, kleptocrats Organizations: CNN, Wall Street Journal, Binance, Hamas’s, ISIS, Patriot Locations: Washington, American, Manhattan, Malibu, Midwest

☆ Native American populations are ‘invisible’ to banks. That needs to change
▼ + stars: | 2023-10-30 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +13 min

Before the Bell: What do investors need to know about investing in Native American and Alaskan Native communities? Dawson Her Many Horses: Native American and Alaskan Native communities are more than an ethnic group or racial category. The National League Gaming Commission, which is the regulator for Native American casinos, publishes a yearly report on gross gaming revenues for casinos. When you look at some of the research that gets done, Native American and Alaskan Native households are almost always the most underbanked. People like to focus on what I call the ‘poverty porn’ aspects of Native American and Alaskan Native communities.

Persons: Dawson, “, “ I’ve, ”, Bell, Banks, Wells, That’s, we’ve, Wells Fargo, they’re, Danielle Wiener, Bronner, Kit Kat, ” Hershey, Michele Buck, It’s, Dan Sadler, Covid shutdowns Organizations: CNN Business, Bell, New York CNN, CNN, Wells, Rosebud Sioux, The National League Gaming Commission, Bank of America, Federal, American Finance, Silicon Valley Bank, Hershey, Consumers, Dow, Federal Reserve, Apple Locations: New York, Rosebud, South Dakota, Wells Fargo, United States, Federal Government, Silicon, New York City, Alaska, Oklahoma, confections

☆ How big banks won the banking crisis
▼ + stars: | 2023-09-05 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Before the Bell: Now that the dust is hopefully settling on this year’s regional banking crisis, are there clear winners and losers in the banking sector? David Kotok: There’s no question the [global systemically important banks, G-SIB] won and the middle-sized banks — let’s call that banks with between $50 billion and $250 billion in assets — were the losers. So if you stand back from the immediate 2023 banking crisis, and you say, how many banks were there 20 years ago in the United States, how many banks are there today? The UK economy is bigger than we thoughtThe UK economy recovered from the Covid-19 pandemic much faster than previously thought, reports my colleague Hanna Ziady. For many office workers around the United States, it also means more return-to-office mandates.

Persons: JPMorgan Chase, Bell, David Kotok, he’s, SIB, Jamie Dimon, J.P, Morgan, hasn’t, Hanna Ziady, John Springford, Andy Jassy, CNN’s Jeanne Sahadi, unaddressed, Merck Organizations: CNN Business, Bell, New York CNN, Silicon Valley Bank, UBS, JPMorgan, Republic Bank, Cumberland Advisors, —, Credit Suisse, First, Federal Reserve, Office, National Statistics, ONS, Centre, European Reform, Labor, Amazon, Business Locations: New York, Silicon, First Republic, United States, Jekyll, America, Hanna Ziady ., Germany, Canada, Japan, Italy, France, Britain

☆ Will inflation come down this year? Investors seek clues in corporate results
▼ + stars: | 2023-07-11 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

It’s not just in the United States, either. Coming up: Two major measures of inflation in the United States are out this week — the Consumer Price Index on Wednesday and Producer Price Index on Thursday. On Friday morning, earnings reports for the second quarter kick off with JPMorgan Chase, Wells Fargo, Citi and BlackRock all reporting. Her Many Horses joined Wells Fargo in 2018 as senior vice president in middle market banking to focus on rebuilding the bank’s Native American banking effort. Wells Fargo Native American Banking is the leading provider of capital and financial services to Native American and Alaska Native markets, according to a statement from the company.

Persons: they’re, Jerome Powell, Christine Lagarde, ”, Albert Edwards, Edwards, it’s, Lael Brainard, Price, Michael Barr, Barr, ” Barr, Elisabeth Buchwald, Wells Fargo, Dawson, “ Dawson, Ruth Jacks, Wells Organizations: New, New York CNN, Federal, Kansas City Fed, Monetary Fund, European Central Bank, Societe, National Economic Council, JPMorgan Chase, Citi, BlackRock, Rosebud Sioux, Wells, Wells Fargo Commercial Banking, American Banking Locations: New York, United States, Wells Fargo, Wells, Dawson, Rosebud, South Dakota, American, Alaska

☆ Wells Fargo promotes head of Native American banking to managing director
▼ + stars: | 2023-07-10 | by ( ) www.reuters.com time to read: +1 min

NEW YORK, July 10 (Reuters) - Wells Fargo (WFC.N) promoted Dawson Her Many Horses, head of Native American Banking, to managing director, one of the first enrolled tribal members to reach that rank at a major U.S. bank, the lender said on Monday. Her Many Horses was appointed head of Native American Banking in the commercial banking division in 2021. He joined Wells Fargo in 2018. Wells Fargo has banking relationships with one out of three federally recognized tribes in the U.S. with about $3.4 billion in credit commitments and $4.1 billion in deposits. Reporting by Nupur Anand in New York; Editing by Lananh Nguyen and Richard ChangOur Standards: The Thomson Reuters Trust Principles.

Persons: Wells, Dawson, Wells Fargo, Nupur Anand, Lananh Nguyen, Richard Chang Organizations: YORK, American Banking, Covington, Burling, New York Times, Thomson Locations: U.S, Wells Fargo, New York

☆ The American banking landscape is on the cusp of a seismic shift. Expect more pain to come
▼ + stars: | 2023-07-10 | by ( Hugh Son | ) www.cnbc.com time to read: +10 min

But even as the dust settles from a string of government seizures of failed midsized banks, the forces that sparked the regional banking crisis in March are still at play. What is coming will likely be the most significant shift in the American banking landscape since the 2008 financial crisis. JPMorgan shares are up 7.6% this year, while the KBW Regional Banking Index is down more than 20%. Some of those pressures will be visible as regional banks disclose second-quarter results this month. "The fundamental issue with the regional banking system is the underlying business model is under stress," said incoming Lazard CEO Peter Orszag.

Persons: Jamie Dimon, Brian Graham, Banks, KeyCorp, Matt O'Connor, Peter Orszag, SVB, Chris Wolfe, Wolfe, you've, You've, Goldman Sachs, Lazard's Orszag, Orszag, Janet Yellen, Sen, Elizabeth Warren, Klaros, Graham Organizations: First, JPMorgan, Silicon Valley Bank, CNBC, Klaros, Deutsche Bank, Federal Reserve Bank of New, Justice Department Locations: First Republic, Silicon Valley, SVB, KBW, Federal Reserve Bank of New York, Republic

☆ Latest 'deadline' looms in Man Utd takeover saga
▼ + stars: | 2023-06-09 | by ( Mitch Phillips | ) www.reuters.com time to read: +4 min

LONDON, June 9 (Reuters) - Manchester United fans can be forgiven if they refrain from eagerly checking the news on Friday as the latest "deadline" looms in the meandering seven-month saga of the club's sale that is beginning to resemble the final series of TV's Succession. That comes two months after a "third and final offer" was said to have been tabled. Media reports in the UK suggested that the Glazers are seeking six billion pounds ($7.5 billion), which would be a world record for any sports club or franchise, but that neither bid is that high. Further bids followed, up to the Qatari's earlier this week, which is said to include clearing nearly a billion pounds of club debt and a commitment to a major redevelopment of Old Trafford. Reporting by Mitch Phillips, editing by Toby DavisOur Standards: The Thomson Reuters Trust Principles.

Persons: Jassim bin Hamad, Briton Jim Ratcliffe, Sheikh Jassim, Glazer, Todd, Ratcliffe, Joel, Avram Glazer, Glazers, Erik ten Hag, United's, Mitch Phillips, Toby Davis Organizations: Manchester United, Daily Mail, Reuters, Guardian, United, Media, Premier League club Chelsea, Washington Commanders NFL, Raine Group, Ineos Grenadiers, Britain's Times, Group, Champions League, Manchester, Inter Milan, Premier League, FA Cup, Thomson Locations: Thani, Briton, Qatar, Old Trafford, Old Trafford . Manchester, France, Switzerland

☆ Banks ask SEC to stop short-seller attacks on their stocks driven by social-media speculation
▼ + stars: | 2023-05-05 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +3 min

A leading banking group called for the SEC to do more to stop speculative short selling in bank stocks. The American Banking Section said social-media speculation about banks was disconnected from their financial reality. "ABA is, however, unalterably opposed to short selling practices that distort the markets through manipulation and abuse," he said. Nichols called for the SEC to take a clearer stance against what he called market manipulation and abusive short selling practices. "The harm caused by short selling that runs counter to economic fundamentals ultimately falls on small investors, who see value destroyed by others' predatory behavior."

☆ The market is looking for the next 'domino' to fall, keeping banks under pressure
▼ + stars: | 2023-05-03 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

After an intense few days in which the fate of ailing lender First Republic was finally determined, veteran banking analyst Christopher McGratty was looking forward to some calm. Minutes after the start of regular trading, however, the regional bank stocks he covers for KBW began plunging. "I was like, 'Hey, it's a good day to catch up, it seems like an orderly kind of day,'" McGratty said in a phone interview. "I get back to my desk, and I had 40 emails and 10 voicemails, and my screen was completely red." The sharp selloff in regional banks sparked by the March failure of Silicon Valley Bank resumed Tuesday, catching Wall Street analysts and investors off guard.

New York CNN —The collapse of First Republic Bank is unlikely to worsen the US economic outlook, JPMorgan CEO Jamie Dimon said Monday. Dimon told CNN’s Poppy Harlow early last month that the stress in the banking system had increased the odds of a US recession. The bank had $100 billion in those deposits withdrawn from the bank during the first quarter, it reported last week. “The American banking system is extraordinarily sound,” he said. But he agreed with Dimon that the seizure of First Republic, however, does not shift those forecasts, he told CNN Monday.

☆ Charlie Munger reportedly warns of trouble for the U.S. commercial property market
▼ + stars: | 2023-04-30 | by ( Ashley Capoot | ) www.cnbc.com time to read: +1 min

Charlie Munger believes there is trouble ahead for the U.S. commercial property market. The 99-year-old investor told the Financial Times that U.S. banks are packed with "bad loans" that will be vulnerable as "bad times come" and property prices fall. "It's not nearly as bad as it was in 2008," he told the Financial Times in an interview. "We have a lot of troubled office buildings, a lot of troubled shopping centers, a lot of troubled other properties. Read the complete Financial Times interview here.

☆ Big banks including JPMorgan Chase, Bank of America asked for final bids on First Republic
▼ + stars: | 2023-04-29 | by ( Hugh Son | ) www.cnbc.com time to read: +5 min

JPMorgan Chase and PNC are likely bidders for the ailing lender, which would be seized in receivership and immediately sold to the winning bank, according to people with knowledge of the situation. Bank of America is among several other institutions that are weighing a potential bid for First Republic, according to people with knowledge of the matter. Shares of the bank sank 90% last month, and then collapsed further this week after First Republic disclosed how dire its situation is. The biggest banks will bear the brunt of that expense, because member banks will likely be assessed fees to replenish the FDIC fund over several years. Wells Fargo , Goldman Sachs and Citigroup are each unlikely to make a bid, according to people with knowledge of the banks.

SummarySummary Companies Silver, platinum, palladium set for monthly gainDollar eyes monthly fallApril 28 (Reuters) - Gold prices eased on Friday as the dollar firmed in the run up to U.S. inflation data, but economic jitters kept safe-haven bullion on course for a second consecutive monthly rise. Spot gold edged 0.2% lower to $1,983.01 per ounce by 0915 GMT, but was up 0.8% for the month. But "a sudden deterioration in the bank sector crisis could trigger a rush to safe-havens likely to see gold prices soar above previous records," Evangelista added. A weaker dollar makes bullion more affordable for overseas buyers. Silver fell 0.5% to $24.82, platinum shed 1% to $1,066.57, while palladium was flat at $1,495.13 -- all headed for monthly gain.

April 19 (Reuters) - IBM Corp (IBM.N) missed Wall Street expectations for first-quarter revenue on Wednesday, hurt by shrinking corporate spending on IT services and a strong dollar. IBM cut its full-year consulting revenue growth forecast to 6%-8% from earlier expectations of high single-digit percentage growth. IBM, which receives over 75% of its revenue from its software and consulting business units, said its consulting revenue rose 8.2% at constant currency to $4.96 billion in the quarter ended March 31. Accenture signaled to a wider slowdown last month, when it decided to slash about 19,000 jobs and trimmed revenue growth and profit forecasts. Total revenue in the first quarter rose 4.4% at constant currency to $14.25 billion, compared with analysts' estimate of $14.35 billion.

☆ India's Infosys forecasts slower FY24 revenue growth of 4%-7%
▼ + stars: | 2023-04-13 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, April 13 (Reuters) - Infosys Ltd (INFY.NS) on Thursday forecast slower revenue growth for the current fiscal year compared with analysts' expectations, amid a turmoil in the U.S. banking sector that has prompted clients to tighten spending. India's second-largest IT services firm expects revenue growth of 4%-7% for the fiscal year ending March 2024. Analysts expected growth of 10.73% for the period, according to Refinitiv IBES data. Infosys won large deals worth $2.1 billion in the fourth quarter, down from $2.3 billion in the same period the previous year. Infosys' consolidated net profit rose 7.77% to 61.28 billion rupees ($749.10 million) in the three months ended March 31, while revenue rose 16% to 374.41 billion rupees.

Earnings per share for the six biggest U.S. banks are expected to be down about 10% from a year earlier, analyst estimates from Refinitiv I/B/E/S show. The bank is expected to report a 30% rise in EPS, buoyed by an almost 36% increase in net interest income, according the Refinitiv I/B/E/S estimates and Reuters calculations. "We expect a challenging earnings season for the banks," said David Chiaverini, banking analyst at Wedbush Securities, in a note. He said bank managements will become more defensive, implementing liquidity measures that could lead to downward revisions for net interest income. Net interest income for the six biggest U.S. banks are expected to be up about 30% from a year earlier, according to analyst estimates from Refinitiv I/B/E/S.

☆ Jamie Dimon is riding to the rescue again. This time, he's poised to come out on top.
▼ + stars: | 2023-03-31 | by ( Carter Johnson | ) www.businessinsider.com time to read: +15 min

Why, then, has Dimon been so willing to swing back into action in the wake of Silicon Valley Bank's collapse? But it's starting to look like JPMorgan — and Dimon — will end up winners no matter how things turn out. In backstopping First Republic, JPMorgan helps a client and a bank that experts say would fit nicely into its business. By saving First Republic, JPMorgan also stands to gain goodwill from Silicon Valley startups, which are customers of the smaller bank. The paper also reported that regulators asked Dimon, Bank of America, and other banks to buy Silicon Valley Bank and pay out depositors over the insured limit.

☆ FDIC hires Newmark Group to sell billions of Signature Bank debt - source
▼ + stars: | 2023-03-29 | by ( Manya Saini | ) www.reuters.com time to read: +2 min

[1/2] The company logo for Signature Bank is displayed at a location in Brooklyn, New York, U.S., March 20, 2023. Earlier this month, state regulators closed New York-based Signature Bank, making it the third largest failure in U.S. banking history. The subsidiary, Flagstar Bank, assumed substantially all of Signature Bank's deposits, some of its loan portfolios and all 40 of its branches. On Tuesday, FDIC told Signature Bank's crypto clients they have until April 5 to close their accounts and move their money. New York's financial regulator had said earlier in March its decision to close Signature Bank had "nothing to do with crypto."

☆ FDIC hires Newmark Group to sell billions of Signature Bank debt - WSJ
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +1 min

[1/2] The company logo for Signature Bank is displayed at a location in Brooklyn, New York, U.S., March 20, 2023. REUTERS/Brendan McDermidMarch 29 (Reuters) - The Federal Deposit Insurance Corp (FDIC) has hired Newmark Group Inc (NMRK.O) to sell about $60 billion of Signature Bank loans, the Wall Street Journal reported on Wednesday citing people familiar with the matter. Earlier this month, state regulators closed New York-based Signature Bank, making it the third largest failure in U.S. banking history. On March 19, a subsidiary of New York Community Bancorp (NYCB.N) entered into an agreement with U.S. regulators to buy deposits and loans from Signature Bank. The subsidiary, Flagstar Bank, assumed substantially all of Signature Bank's deposits, some of its loan portfolios and all 40 of its branches.

☆ The Fed Tries to Thread the Needle on Interest Rates
▼ + stars: | 2023-03-22 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

Federal Reserve Chairman Jerome Powell wants you to know the American banking system is safe and he will get inflation under control. If we’re all lucky, maybe both will turn out to be true. That’s the optimistic take, anyway, on what you might call the Fed’s thread-the-needle policy meeting this week. The Federal Open Market Committee (FOMC) pressed ahead Wednesday with a quarter-point increase to the fed funds rate, bringing the target range to 4.75%-5%. The quarterly summary of economic projections by Fed officials released Wednesday still foresees the rate topping out at 5.1% this year, so the rate-rising cycle appears to be one more and done.

☆ Op-ed: ESG investing and 2018 change in bank laws didn't cause Silicon Valley Bank to collapse, says former Sen. Heitkamp
▼ + stars: | 2023-03-21 | by ( Heidi Heitkamp | Former Democratic U.S. Senator North Dakota | ) www.cnbc.com time to read: +6 min

Within hours of the Silicon Valley Bank collapse, political spin machines on both the left and right got cranking. I was one of the Democrats on the Senate Banking Committee who negotiated that legislation, which granted regulatory relief to small community and mid-sized regional banks. Under the burden of increased regulation, smaller institutions and many regional banks were struggling to stay competitive. If all the bank depositors withdrew their deposits on the same day, any bank would fail regardless of liquidity or bank capitalization.) The Fed had the authority to enhance the current level of regional bank supervision, a step the central bank is considering in the wake of the SVB failure.

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