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Senator Elizabeth Warren is questioning federal bank regulators on their decision to sell First Republic Bank to the nation's largest bank, JP Morgan Chase. In a letter sent to the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation Wednesday, Warren said the deal was "deeply troubling," and sought details on how the agencies decided to arrange that particular sale, allowing JPM to grow even larger. This is a troubling outcome, leaving me with numerous questions," she wrote. The FDIC announced this month it had seized First Republic and sold it to JPM in a deal that it estimated would cost its deposit insurance fund $13 billion. Warren also pressed the matter with Michael Hsu, the acting Comptroller of the Currency, at a hearing Thursday.

WASHINGTON, May 15 (Reuters) - Top U.S. banking regulators plan to tell lawmakers the government will be open to future bank mergers, but are committed to establishing tougher rules after recent turmoil. Barr maintained his commitment to overhauling bank rules to ensure firms do not escape stricter oversight because they are smaller or viewed as less risky. "The prudential regulation and supervision of these institutions merits additional attention, particularly with respect to capital, liquidity, and interest rate risk," he said in prepared testimony. While vowing to draft tougher rules, the agencies have also been criticized for not identifying and preventing weaknesses before the lenders failed. In prepared testimony, he said rapid interest rate increases and social media-fueled rumors drove the "unprecedented" bank run that sank his firm.

WASHINGTON, May 15 (Reuters) - A U.S. banking regulator plans to tell lawmakers his agency is "open-minded" when it comes to potential bank mergers and would act on any proposed deal in a timely fashion. Recent turmoil has added "urgency" to the OCC's work on updating bank merger guidelines, Hsu said. Tuesday's hearing will be the first for regulators since the FDIC agreed to sell failed First Republic Bank to JPMorgan Chase & Co (JPM.N) this month. Watchdogs have been under intense scrutiny after the collapses of SVB and Signature set off fears of contagion. In prepared testimony, he said rapid interest rate increases and social media-fueled rumors drove the "unprecedented" bank run that sank his firm.

☆ Bank Regulator Drops Case Against Ex-Rabobank U.S. Compliance Chief
▼ + stars: | 2023-04-07 | by ( Richard Vanderford | ) www.wsj.com time to read: 1 min

Rabobank NA was the California subsidiary of Netherlands-based Rabobank. A branch in Thousand Oaks, Calif., shown above in 2018, the year the bank pleaded guilty to conspiring to conceal its problems from the OCC. A U.S. banking regulator has dropped a case against a former Rabobank NA compliance chief who allegedly tried to cover up problems in the bank’s anti-money-laundering program, finding the judge in the case hadn’t given her a fair hearing. The U.S. Office of the Comptroller of the Currency said it would “reluctantly” end its case against Laura Akahoshi, a onetime OCC employee who later worked as Rabobank’s compliance chief. She was accused of obstructing OCC efforts to investigate Rabobank by allegedly working to hide a critical report produced by an accounting firm.

☆ JPMorgan's dealmaking flurry being scrutinized by US regulator - FT
▼ + stars: | 2023-04-07 | by ( ) www.reuters.com time to read: +1 min

JPMorgan had sued Javice and Olivier Amar, who was Frank's chief growth officer, in Delaware federal court in December. The OCC audit was scheduled before JPMorgan's lawsuit, the report said. Javice filed counterclaims in February, accusing JPMorgan of having "compromised her reputation" and wrongfully withheld $28 million of retention payments and equity. JPMorgan and the OCC did not immediately respond to Reuters request for comment. Reporting by Baranjot Kaur in Bengaluru; Editing by Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

☆ March's bank failures show options can be tricky even when retail traders pick big winners
▼ + stars: | 2023-04-03 | by ( Jesse Pound | ) www.cnbc.com time to read: +6 min

This halt, and how regulators and brokerage firms handled the outstanding options contracts, turned simple trades into a big headache for retail investors. Davies said that usually he would sell his winning options trades before expiration, so he does not have to deal with the settlement process. Robinhood later allowed Davies to create the naked short position and therefore to exercise his option. The naked short positions showed an on-paper loss in his account until the stock began trading over the counter on March 28. Another wrinkle is that some types of accounts, including retirement accounts, are not allowed to hold short positions, which created additional steps for traders and brokers to close out the trade.

☆ Mid-size banks want all deposits insured for 2 years to avoid 'panic' and restore confidence, report says
▼ + stars: | 2023-03-19 | by ( Jyoti Mann | ) www.businessinsider.com time to read: +2 min

A coalition of more than 100 mid-sized banks is calling for deposits to be insured for two years. The Mid-Size Bank Coalition of America asked regulators to extend protection, Bloomberg reported. The MBCA said the increased protection would stop the "exodus" of deposits from smaller banks and help "stabilize" the financial sector. The coalition also said that confidence has "eroded" in smaller banks and that more cash could be taken out of regional lenders if more banks failed, per the report. After taking control of SVB, regulators said they would "fully protect" all of its deposits in the bank.

Eleven banks have deposited $30 billion in First Republic Bank , according to a joint statement from the heads of the Treasury, Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency. “This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system,” the federal officials said.

☆ Ex-Wells Fargo exec who pushed bankers to open fake accounts will plead guilty. She'll pay a $17 million fine — and faces more than a year in prison.
▼ + stars: | 2023-03-16 | by ( Grace Mayer | ) www.businessinsider.com time to read: +2 min

A former Wells Fargo exec agreed to plead guilty to charges she obstructed a bank examination. Carrie Tolstedt, who led the bank's retail division, will pay a $17M fine and faces prison time. She is the first exec to be criminally charged in the bank's scandal involving unauthorized accounts. The plea agreement calls for Tolstedt to serve up to 16 months in prison. Tolstedt is the first Wells Fargo executive to be criminally charged for the scandal.

Companies Wells Fargo & Co FollowWASHINGTON, March 15 (Reuters) - The former head of Wells Fargo's retail bank is facing prison time after pleading guilty to obstructing a bank examination in relation to the sweeping phony accounts scandal that roiled the bank in 2016. An attorney for Tolstedt, who ran the bank's retail and small business lending from 2007 to 2016, declined to comment. But, in this case, Ms. Tolstedt took steps to cover up misconduct at Wells Fargo," Joseph McNally, acting U.S. attorney for the central district of California, said in a statement. A spokesperson for Wells Fargo declined to comment. The development marks a rare instance of a senior bank executive facing prison time as a result of their job, but some said it does not go far enough.

☆ Billionaire investor Bill Ackman says feds 'screwed up' handling of Silicon Valley Bank collapse, warns they have '48 hours to fix a soon-to-be-irreversible mistake'
▼ + stars: | 2023-03-11 | by ( Aaron Mcdade | ) www.businessinsider.com time to read: +4 min

Billionaire investor Bill Ackman posted a lengthy tweet about the Silicon Valley Bank collapse Saturday. Ackman criticized the response of the federal government and its lack of monitoring SVB for risk. He said the government has "about 48 hours to fix a-soon-to-be-irreversible mistake" with its handling of SVB. "The gov't has about 48 hours to fix a-soon-to-be-irreversible mistake," Ackman tweeted in a lengthy post Saturday morning. In Ackman's view, this could lead to the collapse of several other smaller banks around the country.

Members of the FIA include the major banks on Wall Street. As a clearing house, the OCC settles and guarantee options contracts, working as a central counterparty for credit risk. Apart from the group meeting with the FIA, the OCC has also discussed this issue individually with some market participants, one of the sources said. The OCC told this person it did not see a major risk, but it wanted to assess its members' views and explore different risk scenarios. Many 0DTE options have a low probability of rising in value as they approach expiration.

☆ Bitcoin, ether fall after go-to crypto bank Silvergate announces liquidation
▼ + stars: | 2023-03-09 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +3 min

The slight move lower began late Wednesday, a few hours after Silvergate Capital announced it will wind down operations and liquidate its crypto-friendly bank. Crypto prices fell on Thursday after Silvergate, a bank that has been at the center of the industry's growth, made a decision to shut down. "This likely consolidates crypto exposure to a handful of smaller banks, which means more liquidity risk and more concentration risk. "We've also noticed a drop in liquidity on both USD crypto pairs and U.S. exchanges as liquidity providers are taking a wait-and-see approach. In the short term, lower liquidity will lead to more volatility in markets and bigger price moves up or down."

☆ In praise of American finance’s regulatory mess
▼ + stars: | 2023-03-09 | by ( John Foley | ) www.reuters.com time to read: +8 min

NEW YORK, March 9 (Reuters Breakingviews) - There are many issues on which China and the United States are far apart. The People’s Republic this week proposed combining financial regulatory functions into a new super watchdog to govern its financial sector more effectively. China’s proposed new National Financial Regulatory Administration is roughly in this mold. Since 2008, officials in Beijing have criticized the United States’ financial excesses and its “warped conception” of financial discipline. The new National Financial Regulatory Administration would sit directly under the State Council, which serves as China’s cabinet.

☆ China to set up new financial regulator in sweeping reform
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +6 min

The new financial regulator will replace the China Banking and Insurance Regulatory Commission (CBIRC) and bring supervision of the industry, excluding the securities sector, into a body directly under the State Council, or cabinet. The proposal for setting up the new regulator, the National Financial Regulatory Administration, was presented to China's parliament during its annual meeting on Tuesday. China's financial sector is overseen by the People's Bank of China (PBOC), the CBIRC, and the China Securities Regulatory Commission (CSRC), with the cabinet's Financial Stability and Development Committee having overall responsibility. The setting up of the new financial regulatory body comes as Beijing seeks to rein in large corporate and financial institutions that may bring systemic risks via regulatory arbitrage among multiple authorities. 'STRENGTHEN SUPERVISION'The new administration will "strengthen institutional supervision, supervision of behaviours and supervision of functions", according to the plan.

☆ Yellen warns climate change could trigger asset value losses, harming US economy
▼ + stars: | 2023-03-07 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

WASHINGTON, March 6 (Reuters) - Climate change is already having a major economic and financial impact on the United States and may trigger asset value losses in coming years that could cascade through the U.S. financial system, Treasury Secretary Janet Yellen will warn on Tuesday. "As climate change intensifies, natural disasters and warming temperatures can lead to declines in asset values that could cascade through the financial system. She said severe storms and wildfires in states like California, Florida, and Louisiana, tornadoes across the South and intensifying storms on the West Coast show how climate change is accelerating. Yellen said the new Climate-related Financial Risk Advisory Committee, set up last October by the Financial Stability Oversight Council (FSOC), would boost U.S. efforts to mitigate the risks that climate change poses to financial stability. That in turn could spill over to other parts of the financial system, she said.

Read our review Read Our Review A looong arrow, pointing rightCiti vs. Bank of America vs. Chase Ssavings Account ComparisonsSee how Citi, Bank of America, and Chase savings accounts compare. Citi® Accelerate Savings Bank of America Advantage Savings Account Chase Savings℠ APY 3.85% (vary by location) 0.01% to 0.04% 0.01% effective as of 10/10/2022. Winner: Bank of America and Citi Bank of America and Citi tie in this category because their savings accounts stand out for different reasons. Citi Fixed Rate CD 3.25 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.25 out of 5 Stars Annual Percentage Yield (APY) 0.05% to 4.15% Minimum Deposit Amount $500 View Full Details Learn moreCiti Fixed Rate CD 3.25 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.25 out of 5 Stars Annual Percentage Yield (APY) 0.05% to 4.15% Minimum Deposit Amount $500 View Full Details Learn more at Citi's secure site. Which bank of the three, Citi, Bank of America, or Chase, is the safest?

Compare Citi vs. Wells Fargo Citi® Accelerate SavingsWells Fargo Way2Save® Savings Account Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Read our review Read Our Review A looong arrow, pointing rightCiti vs. Wells Fargo Savings Account ComparisonsCiti and Wells Fargo both have two types of savings accounts. Citi Fixed Rate CD 3.25 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.25 out of 5 Stars Annual Percentage Yield (APY) 0.05% to 4.15% Minimum Deposit Amount $500 View Full Details Learn moreCiti Fixed Rate CD 3.25 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.25 out of 5 Stars Annual Percentage Yield (APY) 0.05% to 4.15% Minimum Deposit Amount $500 View Full Details Learn more at Citi's secure site. Wells Fargo has been involved in the following cases:In December 2022, The Consumer Financial Protection Bureau required Wells Fargo to pay more than $3.7 billion in a settlement that accused the bank of wrongfully charging fees that led thousands of customers to lose vehicles and homes. In 2020, Wells Fargo paid billions in settlements for its employees creating authorized bank accounts to meet unrealistic sales goals.

Read our review Read Our Review A looong arrow, pointing rightCiti vs. Bank of America Savings Account ComparisonsCiti offers two savings accounts — Citi® Accelerate Savings and the Citi® Savings Account. Meanwhile, the Bank of America Advantage Savings Account may be a better choice if you find it easier to waive monthly service fees at Bank of America. Bank of America, Member FDICBank of America Advantage Savings Account Learn more at Bank of America's secure site. Citi Fixed Rate CD 3.25 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.25 out of 5 Stars Annual Percentage Yield (APY) 0.05% to 4.15% Minimum Deposit Amount $500 View Full Details Learn moreCiti Fixed Rate CD 3.25 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.25 out of 5 Stars Annual Percentage Yield (APY) 0.05% to 4.15% Minimum Deposit Amount $500 View Full Details Learn more at Citi's secure site. Winner: Bank of America Bank of America wins in this category since it is more likely to address customer issues, but keep in mind it's also been involved in public controversies.

Learn more A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.25 out of 5 Stars Editor's Rating A tooltip OUR EDITOR'S RATINGS ARE PRIMARILY BASED ON 3 THINGS: SIMPLICITY, AFFORDABILITY, AND VALUE. Learn more A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4 out of 5 Stars Editor's Rating A tooltip OUR EDITOR'S RATINGS ARE PRIMARILY BASED ON 3 THINGS: SIMPLICITY, AFFORDABILITY, AND VALUE. Learn more A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.25 out of 5 Stars Editor's Rating A tooltip OUR EDITOR'S RATINGS ARE PRIMARILY BASED ON 3 THINGS: SIMPLICITY, AFFORDABILITY, AND VALUE. Learn more A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.75 out of 5 Stars Editor's Rating A tooltip OUR EDITOR'S RATINGS ARE PRIMARILY BASED ON 3 THINGS: SIMPLICITY, AFFORDABILITY, AND VALUE. Pros Check mark icon A check mark.

☆ Banks should be more cautious on crypto contagion risks, U.S. regulators warn
▼ + stars: | 2023-01-03 | by ( Hannah Lang | ) www.reuters.com time to read: +2 min

Jan 3 (Reuters) - Banks should be more careful about the risks of fraud, legal uncertainty and misleading disclosures by crypto firms, U.S. regulators warned on Tuesday, just two months after the collapse of crypto exchange FTX stunned the financial world. Banks issuing or holding crypto tokens stored on public, decentralized networks are "highly likely" to be inconsistent with safe and sound banking practices, the regulators added, potentially dealing a blow to several lenders' ongoing efforts to provide crypto services to customers. The regulators said they are supervising banks that may be exposed to crypto-related risks and are carefully reviewing bank proposals to engage in crypto activities, according to the joint statement. The Fed, FDIC and OCC emphasized numerous risks associated with crypto, including the volatility of digital asset markets, contagion risk within the sector and weak risk management. The regulators said they would issue further statements on banks' crypto-related activities as warranted and would continue to work with other agencies on crypto issues.

☆ New York Flags Climate Risks for Banks
▼ + stars: | 2022-12-21 | by ( Richard Vanderford | ) www.wsj.com time to read: +4 min

Financial institutions of all sizes—including foreign-based banks with operations in New York—would be expected to evaluate climate risks throughout their business under guidance released Wednesday by the New York State Department of Financial Services. Banks would be called upon to look at climate-related risks when bringing on new clients and when extending credit. Financial institutions in New York state would be expected to look at, for example, climate-related risks that could impact their branches and offices, or scenarios that could impact liquidity. NYDFS, in contrast, said that in its view, banks of all sizes face climate-related risks. NYDFS guidance said banks should take a “proportionate approach” to managing climate-related risks, based on their exposure.

Dec 20 (Reuters) - Wells Fargo & Co (WFC.N) agreed to pay $3.7 billion to settle charges from a U.S. consumer watchdog over widespread mismanagement of car loans, mortgages and bank accounts, the regulator said Tuesday. "Wells Fargo is a corporate recidivist that puts one-third of American households at risk of harm,” CFPB Director Rohit Chopra told journalists in a briefing. Shares of Wells Fargo were down less than 1% in late morning trading. Wells Fargo has faced multiple enforcement actions taken by the CFPB and other banking regulators for violations across the bank's business lines. Scharf became CEO in 2019, the fourth person to lead Wells Fargo since the scandal emerged.

☆ Banks Should Be Wary of Crypto, Top U.S. Regulator Says
▼ + stars: | 2022-12-08 | by ( Richard Vanderford | ) www.wsj.com time to read: +3 min

Crypto industry risk management lacks maturity, and some industry practices mean trouble in one firm could spill over to others, the Office of the Comptroller of the Currency said Thursday. The OCC also advised national banks to discuss with regulators any plans to engage in digital assets, and potentially seek clearance for some activities. The OCC itself less than six months ago noted the risks of crypto, but also said crypto products and services could “create opportunities for banks and their customers.” It didn’t mention crypto opportunities in Thursday’s report. The Securities and Exchange Commission, which has yet to sue a major crypto exchange, is also facing pressure to step up its enforcement. Two former chairmen of the Securities and Exchange Commission and the Commodity Futures Trading Commission have also jointly called for stronger regulation.

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