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☆ Why credit card late fees may drop to $8
▼ + stars: | 2023-07-10 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +5 min

How things might changeIf no substantive changes are made to the proposal, here is how late fees would change, relative to current rules. Today, they may charge you automatically up to $41 ($30 for your first late payment but $41 for subsequent ones). But since the CFPB hasn’t seen today’s late fees exceed $41, it is unlikely you would see late fees as high as those examples suggest, Shearer noted. Among them, they assert that the CFPB’s estimates don’t account for the costs associated with uncollected late fees or the forgiveness of late fees by financial institutions. As a result, the cost of credit will increase, credit availability will drop, and rewards and other credit card features will decline and some may disappear,” the letter stated.

Persons: Brian Shearer, Rohit Chopra, Shearer, ”, “, ” CFPB’s Shearer Organizations: New, New York CNN, Consumer Financial, American Bankers Association, Consumer Bankers Association, National Association of, ABA Locations: New York

The lending unit of crypto firm Genesis filed for bankruptcy in January after the collapse of key counterparties including FTX caused it to freeze customer redemptions in November. Its largest creditor is Gemini, founded by billionaire identical twins Cameron and Tyler Winklevoss who are also former U.S. Olympic rowers. A bankruptcy court appointed a mediator in April to help Genesis, DCG and its creditors agree on a restructuring plan, but the parties have yet to reach a deal despite several extensions. Under the offer, DCG would retain the proceeds from the sale of Genesis' lending unit. If Silbert and DCG do not agree, Gemini will sue Silbert and DCG, and file a motion to place DCG in default and demand immediate debt repayments, Winklevoss said.

Persons: Cameron, Tyler Winklevoss, Gemini, Barry Silbert, Cameron Winklevoss, Winklevoss, DCG, Mark Zuckerberg, Silbert, ” Winklevoss, Hannah Lang, Dietrich Knauth, Michelle Price, Matthew Lewis Organizations: Digital Currency Group, Gemini, U.S, Olympic, Reuters, Genesis, Meta, Facebook, Thomson Locations: Connecticut, Washington

June 26 (Reuters) - Certain banks working with FTX founder Sam Bankman-Fried's trading firm Alameda Research raised questions about the firm's wire activity as early as 2020, according to a report released by FTX on Monday. Federal prosecutors have alleged that Bankman-Fried stole billions of dollars in customer funds to plug losses at Alameda. He has previously said that when FTX did not have a bank account, some customers wired money to Alameda and were credited on FTX. In 2020, certain banks working with Alameda pressed the firm on its wire transfers, according to the report. One bank representative wrote to Alameda about references to FTX in the company's wire activity and asked whether the account was being used to settle trades on FTX.

Persons: Sam Bankman, FTX, Fried, Hannah Lang, Matthew Lewis Organizations: Alameda Research, Federal, Alameda, Thomson Locations: Alameda, FTX, An Alameda, Washington

But certainly, we have all sorts of new questions that Putin is going to have to address in the weeks and months ahead," Blinken told NBC's "Meet the Press" program. Blinken described the turmoil as an "internal matter" for Putin. "It may be that Putin didn't want to debase himself to the level of negotiating directly with Prigozhin," Blinken said. "To the extent that the Russians are distracted and divided it may make their prosecution of aggression against Ukraine more difficult," Blinken told ABC. Senator Ben Cardin said the weekend turmoil in Russia does not ease Washington's need to continue aiding Ukraine as it launches its long-awaited counteroffensive against Russia.

Persons: Vladimir Putin, Wagner, Antony Blinken, Blinken, Putin, Yevgeny Prigozhin, NBC's, Prigozhin, Alexander Lukashenko, debase, Mikhail Klimentyev, Mike Turner, Turner, Philip Breedlove, Breedlove, Ben Cardin, Cardin, Don Bacon, he's, Bacon, David Morgan, Hannah Lang, Tyler Clifford, Scott Malone, Chizu Nomiyama, Mark Porter, Chris Reese Organizations: U.S . Congress, Russian, Press, REUTERS Forces, ABC, of, CBS, U.S . Air Force, . European Command, U.S, Democrat, Senate Foreign Relations, Fox News, Republican, House Armed Services Committee, NBC, Thomson Locations: U.S, Russia, Poland, Baltic, Ukraine, Russian, Kremlin, Russia's, Finland, Estonia, Latvia, Lithuania

Blinken said tensions that sparked the action had been growing for months and added that the threat of internal turmoil could affect Moscow's military capabilities in Ukraine. Blinken described the turmoil as an "internal matter" for Putin. "It may be that Putin didn't want to debase himself to the level of negotiating directly with Prigozhin," Blinken said. "To the extent that the Russians are distracted and divided it may make their prosecution of aggression against Ukraine more difficult," Blinken told ABC. Senator Ben Cardin said the weekend turmoil in Russia does not ease Washington's need to continue aiding Ukraine as it launches its long-awaited counteroffensive against Russia.

Persons: Vladimir Putin, Wagner, Antony Blinken, Blinken, Putin, Yevgeny Prigozhin, NBC's, Prigozhin, Alexander Lukashenko, debase, Mike Turner, Turner, Ben Cardin, Cardin, Don Bacon, he's, Bacon, David Morgan, Hannah Lang, Tyler Clifford, Scott Malone, Chizu Nomiyama, Mark Porter Organizations: U.S . Congress, Russian, Press, Forces, ABC, of, CBS, Democrat, Senate Foreign Relations, Fox News, Republican, U.S . Air Force, House Armed Services Committee, NBC, Thomson Locations: U.S, Russia, Poland, Baltic, Ukraine, Russian, Russia's, Finland, Estonia, Latvia, Lithuania

☆ Credit-card crackdown will net limited rewards
▼ + stars: | 2023-06-22 | by ( John Foley | ) www.reuters.com time to read: +8 min

NEW YORK, June 22 (Reuters Breakingviews) - With more than two open accounts for every American, credit cards are practically part of the family. The point of credit cards is to make spending easier, yet in practice their complexity rivals the edgiest financial derivatives. At Capital One, late fees account for a little less than $2 billion of revenue, or roughly 5%, a year. If late fees have raised hackles among U.S. lenders, they’re only a taste of what could lie in store. Currently, issuers can charge $30 for a first late payment and $41 for late payments thereafter if they happen within the following six billing cycles.

Persons: Joe Biden’s, Biden, Banks, don’t, Goldman Sachs, Rohit Chopra, Michael Barr, that’s, There’s, Chase, they’re, –, Joe Biden, Jeffrey Goldfarb, Oliver Taslic Organizations: YORK, Reuters, JPMorgan, Consumer Financial, Bureau, American Bankers Association, Citigroup, Federal Reserve, Securities and Exchange Commission, Discover Financial Services, Bank of America, One, Fed, Biden, University of Michigan, Apple, Chase Sapphire, American Express, Capital, U.S, Consumer Financial Protection Bureau, New York Fed, Thomson Locations: U.S, United Kingdom

June 8 (Reuters) - The chair of the U.S. Securities and Exchange Commission (SEC) on Thursday strongly rebutted criticism that the agency is trying to crush the crypto industry, and said many companies in the space had made a "calculated economic decision" to flout its rules. That means most crypto exchanges have to comply with the securities laws too, he added. "They may have made a calculated economic decision to take the risk of enforcement as the cost of doing business." The crypto industry has attacked Gensler in recent days after the SEC sued two of the world's largest crypto exchanges, Coinbase (COIN.O) and Binance, for allegedly breaking securities laws by failing to register their operations with the agency. The SEC alleged Coinbase traded at least 13 crypto assets that are securities, while it accused Binance of offering 12 cryptocurrency coins without registering them.

Persons: Piper Sandler, Gary Gensler, Gensler, Brian Armstrong, Binance, Changpeng Zhao, Binance.US, Coinbase, Heath Tarbert, John McCrank, Hannah Lang, Susan Heavey, Manya, Michelle Price, Chizu Nomiyama, Matthew Lewis Organizations: U.S . Securities, Exchange Commission, SEC, Twitter, Coinbase, Department of Justice, U.S, Reuters, Futures Trading Commission, Manya Saini, Thomson Locations: New York, Washington, Gensler, Bengaluru

WASHINGTON, June 8 (Reuters) - Other U.S. crypto exchanges are likely to be in the firing line after the Securities and Exchange Commission (SEC) this week sued Coinbase and Binance, two of the world's largest crypto exchanges, for allegedly breaching its rules. Both Coinbase and Binance deny the SEC's allegations and have pledged to vigorously defend themselves in court. The Coinbase and Binance suits this week expand that list to include some commonly traded tokens, such as Solana, Cardano and Polygon. While big crypto companies can afford to fight the SEC, smaller companies have filed for bankruptcy following SEC enforcement actions, including crypto exchange Beaxy. "I think if there's a real value in these crypto tokens, then compliance will build trust and the business model might change," he said.

Persons: Coinbase, Binance, Jason Allegrante, Gary Gensler, “, Scott Freeman, Crypto, Kraken, OKCoin, Ripple's, Stuart Alderoty, Piper Sandler, Gensler, Bernstein, Katharine Wooller, Hannah Lang, John McCrank, Susan Heavey, Michelle Price, Stephen Coates Organizations: Securities and Exchange Commission, SEC, Cornerstone Research, Department of Justice, JST, Justice Department, Piper Sandler Global, Fintech Conference, CNBC, U.S, Executives, Thomson Locations: Solana, Cardano, U.S, United States, New York, Washington

REUTERS/David SwansonJune 7 (Reuters) - Coinbase (COIN.O) Chief Executive Brian Armstrong on Wednesday hit back at the U.S Securities and Exchange Commission (SEC) Chair over the agency's lawsuit against the crypto exchange, calling him an "outlier," while also reassuring customers that their funds were safe. Crypto companies, including Coinbase, dispute that crypto tokens are securities and have repeatedly called for the SEC to create clear rules. SETTLEMENT BREAKDOWNLast July, Coinbase disclosed an SEC probe into its asset listing processes, staking programs and yield-generating products. Grewal said despite the lawsuit, Coinbase would still be interested in a dialogue with the SEC about how to bring cryptocurrency into the regulatory perimeter. "If there were an opportunity for a real conversation, of course we would take it up, but I want to be very clear: Coinbase is absolutely committed to defending itself in court," he said.

Persons: Brian Armstrong, David Swanson, Coinbase, Armstrong, Gary Gensler, Gensler, ” Armstrong, Binance, hasn’t, haven’t, Paul Grewal, Grewal, Hannah Lang, Manya Saini, Niket, Chris Prentice, Shounak Dasgupta, Michelle Price Organizations: Milken, Global Conference, REUTERS, U.S Securities and Exchange Commission, SEC, Bloomberg, Monday, CNBC, Reuters, U.S ., Appeals, Circuit, Thomson Locations: Beverly Hills , California, U.S, Solana, Cardano, Washington, Bengaluru

[1/2] Brian Armstrong, CEO and Co-Founder of Coinbase, speaks at the 2022 Milken Institute Global Conference in Beverly Hills, California, U.S., May 2, 2022. REUTERS/David SwansonJune 7 (Reuters) - Coinbase (COIN.O) executives on Wednesday defended the company against a lawsuit brought by the U.S. securities regulator, saying the cryptocurrency sector lacks a clear set of guidelines. The agency also said Coinbase was operating as an unregistered exchange, broker and clearinghouse. Coinbase also sought to distance itself from rival exchange Binance, which was also served with an SEC lawsuit on Monday. The SEC alleged Binance, the world's largest cryptocurrency exchange and its founder Changpeng Zhao, also sold cryptocurrency products without registering them as securities.

Persons: Brian Armstrong, David Swanson, Coinbase, Binance, Changpeng Zhao, Zhao, Paul Grewal, Grewal, Hannah Lang, Manya, Shounak Dasgupta Organizations: Milken, Global Conference, REUTERS, Wednesday, U.S, Securities, Exchange Commission, SEC, CNBC, U.S ., Appeals, Circuit, Reuters, Manya Saini, Thomson Locations: Beverly Hills , California, U.S, Solana, Cardano, Cayman Islands, Washington, Bengaluru

The U.S. Securities and Exchange Commission (SEC) on Monday took aim at Binance, the world's largest cryptocurrency exchange. The SEC accuses Binance and its CEO Changpeng Zhao of operating a "web of deception". The SEC said Coinbase traded at least 13 crypto assets that are securities that should have been registered, including tokens such as Solana, Cardano and Polygon. Reuters GraphicsFounded in 2012, Coinbase recently served more than 108 million customers and ended March with $130 billion of customer crypto assets and funds on its balance sheet. Tuesday's SEC lawsuit seeks civil fines, the recouping of ill-gotten gains and injunctive relief.

Persons: Binance, Changpeng Zhao, Kevin O'Brien, Ford O'Brien Landy, Coinbase, Nansen, Paul Grewal, Coinbase's, Ed Moya, bitcoin, Oanda's Moya, Dado Ruvic, Gary Gensler, Gensler, Kristin Smith, Jonathan Stempel, Hannah Lang, Michelle Price, Kevin Buckland, Leslie Adler, Christopher Cushing Organizations: YORK, U.S . Securities, Exchange Commission, SEC, Global Inc, Exchange, REUTERS, Securities, Supreme, Beaxy Digital, Bittrex Global, CNBC, Blockchain Association, Reuters Graphics, U.S, Binance's U.S, Thomson Locations: Manhattan, Solana, Cardano, bitcoin, Binance, Binance.US, Binance's, Cayman Islands, New York, Washington, Tokyo

The U.S. Securities and Exchange Commission on Monday took aim at Binance, the world's largest cryptocurrency exchange. The SEC said Coinbase traded at least 13 crypto assets that are securities that should have been registered, including tokens such as Solana, Cardano and Polygon. More recently, it has taken aim at unregistered crypto broker dealer, exchange trading and clearing activity. Reuters GraphicsFounded in 2012, Coinbase recently served more than 108 million customers and ended March with $130 billion of customer crypto assets and funds on its balance sheet. Tuesday's SEC lawsuit seeks civil fines, the recouping of ill-gotten gains and injunctive relief.

Persons: Binance, Changpeng Zhao, Kevin O’Brien, Ford O’Brien Landy, Coinbase, Nansen, Paul Grewal, Coinbase's, Gary Gensler, Dado Ruvic, Gensler, Kristin Smith, Jonathan Stempel, Hannah Lang, Michelle Price, Lisa Shumaker, Leslie Adler Organizations: YORK, U.S . Securities, Exchange Commission, SEC, Global, Securities, Supreme, Exchange, REUTERS, Beaxy Digital, Bittrex Global, CNBC, Blockchain Association, Reuters Graphics, U.S, Thomson Locations: Manhattan, Solana, Cardano, U.S, Binance, New York, Washington

June 5 (Reuters) - Cryptocurrencies and shares in crypto and blockchain-related companies tumbled on Monday after the U.S. securities regulator sued crypto exchange Binance, another blow to the industry. The SEC crackdown has prompted some crypto companies to increase compliance, spike products, and expand overseas, moves that some marketwatchers said would likely be accelerated by this latest action against the world's largest crypto exchange. In April, the SEC charged crypto exchange Bittrex Inc with operating an unregistered securities exchange, broker and clearing agency, and settled with Kraken in February for $30 million over the exchange's U.S. crypto staking service. Shares of Coinbase (COIN.O) were down 9.1% on the news of the SEC's charges against Binance. Both Coinbase and crypto exchange Gemini launched international exchanges for crypto derivatives in May.

Persons: Binance, Changpeng Zhao, Binance's cryptocurrency, Gary Gensler, marketwatchers, John Reed Stark, Kraken, Bittrex, James Angel, Gemini, Rajeev Bamra, Sinéad Carew, John McCrank, Manya Saini, Hannah Lang, Michelle Price, Leslie Adler, Lisa Shumaker Organizations: U.S . Securities, Exchange Commission, Reuters, SEC, Washington , D.C, Internet, Coinbase Global Inc, Georgetown University, Binance, Inc, Marathon, Mining, Moody’s Investors Service, Thomson Locations: Washington ,, U.S, New York, Bengaluru, Washington

Fed officials pointed toward a rate hike "skip" at its June 13-14 meeting, giving time for the central bank to assess the impact of its tightening cycle thus far against still-strong inflation data. U.S. manufacturing contracted for a seventh straight month in May as new orders continued to plummet amid higher interest rates, but factories boosted employment to a nine-month high. "We have made clear that we still have ground to cover to bring interest rates to sufficiently restrictive levels," Lagarde said in a speech. Money markets are pricing in an 85% chance of a 25 basis point hike when the ECB meets on June 15. "There's a sort of narrowing interest rate differential ... when the ECB is expected to hike one or two more times and the Fed is more questionable about that."

Persons: Christine Lagarde, Edward Moya, Patrick Harker, payrolls, Lagarde, John Velis, Hannah Lang, Joice Alves, Rae Wee, Andrew Heavens, Will Dunham, Mark Potter, Leslie Adler Organizations: Federal Reserve, Reserve, European Central Bank, Fed, OANDA, Philadelphia Federal, ADP, Institute for Supply Management, ECB, BNY Mellon, Thomson Locations: OANDA . U.S, Washington, London, Singapore

May 19 (Reuters) - Auction house Sotheby's announced Friday seven non-fungible tokens from bankrupt cryptocurrency hedge fund Three Arrows Capital sold for about $2.5 million. The auction was part of liquidating Three Arrows, according to a February memo from Teneo, one of the court-appointed liquidators. Singapore-based Three Arrows was the first major crypto firm to go bankrupt in 2022, brought down by the collapse of cryptocurrencies Luna and TerraUSD. Non-fungible tokens (NFTs) are a blockchain-based asset that represents ownership of a digital item, such as an image, video or piece of text. The market for NFTs exploded in 2021, and auction houses including Sotheby’s and Christie’s joined the craze.

NEW YORK, May 16 (Reuters) - Silicon Valley Bank's former CEO Greg Becker told senators at a hearing that he was unaware the bank was in trouble when he sold stock in the months leading up to the regional U.S. lender's collapse. Becker, who sold SVB shares through the first quarter - the largest sale of which occurred on Feb 27, less than two weeks before the bank collapsed on March 10, triggering a rout in banking shares globally. Responding to questions from senators, Becker painted a picture of an unprecedented, unpredictable crisis at the bank. He said the bank took risk management seriously and had liquidity of around $80 billion at the end of last year. [1/2] Greg Becker, former president and CEO of SVB, speaks at the 2022 Milken Institute Global Conference in Beverly Hills, California, U.S., May 3, 2022.

"I believe it was a series of unprecedented events that all came together in the fastest bank run in history," Becker told the Senate Banking Committee. "I was the CEO of Silicon Valley Bank, I take responsibility for what ultimately happened," Becker said. Executives from Signature Bank also testified alongside Becker on Tuesday, pushing back on assertions from lawmakers that the bank had weak corporate governance. "I don't believe that there was mismanagement at the bank," said Eric Howell, the former president of Signature Bank. The bank tried to cover the loss by raising capital, but in announcing the transaction helped fuel a bank run.

May 15 (Reuters) - Greg Becker, the former chief executive officer of Silicon Valley Bank, is set to appear before the U.S. Congress on Tuesday, two months after the collapse of his bank sparked panic among bank customers and investors, forcing the government to backstop deposits. California banking regulators moved quickly to shut down Silicon Valley Bank on March 10 after depositors withdrew $42 billion in 24 hours. Becker will testify before the Senate Banking Committee alongside Scott Shay and Eric Howell, the former chair and president, respectively, of Signature Bank. When his manager left to work for Silicon Valley Bank, Becker followed, he said on a 2021 Bloomberg podcast. Before becoming president and CEO of SVB Financial Group, Becker co-founded SVB Capital, the company's investment arm.

☆ U.S. prosecutors look at short selling in bank shares - source
▼ + stars: | 2023-05-10 | by ( Chris Prentice | ) www.reuters.com time to read: +3 min

NEW YORK, May 10 (Reuters) - Federal prosecutors in Washington are looking into short seller activity around the recent volatility in U.S. bank shares sparked by the failure of three regional lenders since March, a source familiar with the matter said. Short sellers arrange to borrow shares they consider overvalued and sell them in the hopes that if the price drops they can repurchase them for less and pocket the difference. Critics say short sellers hurt companies, but short sellers and advocates say they act as an important check on public firms. Since at least 2021, the Justice Department and the SEC have been investigating potential manipulation by short sellers and hedge funds around the publication of negative research reports. The source did not say whether the latest interest in bank stocks was related to that pre-existing probe.

☆ Credit card companies need to explain the 'exorbitant' late fees they're charging customers, says Elizabeth Warren
▼ + stars: | 2023-05-09 | by ( Ethan Dodd | ) www.businessinsider.com time to read: +6 min

Sen. Elizabeth Warren wants to know if credit card companies stand with the banks. Currently, credit card companies are permitted to fine consumers up to $41 for each missed credit card payment — no questions asked. The other nine credit card companies Warren sent the letter to did not immediately reply to a request for comment. She wanted to know why reducing credit card late fees would be any different. Warren also asked each credit card company to answer how much money they collect in credit card fees each year — and the proportion from low-income earners — and the actual cost of collecting those fees.

☆ Talk of banning short sales is suddenly in the air, but history argues against it
▼ + stars: | 2023-05-05 | by ( Bob Pisani | ) www.cnbc.com time to read: +6 min

It's just a hop, skip and a jump away from the obvious conclusion: ban short sellers! There are already rules to prevent violation of short selling rules Fortunately, the SEC has not (at least yet) jumped on this bandwagon. Gensler, however, has made it clear he is looking out for bad actors who may be violating existing laws on short selling. For example, there are rules that prohibit naked short selling , the practice of short selling shares that haven't first been borrowed. When short selling is banned, traders who want to buy stock but need to hedge their risk will be hesitant to do so."

☆ U.S. bankers urge SEC to probe short sales, reduce 'abusive' trading
▼ + stars: | 2023-05-05 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

"We urge the SEC to consider all its existing tools and to take measures to reduce the avenues for abusive trading practices and restore investor confidence," the group said. "These measures include, at a minimum, a clear message and appropriate enforcement actions against market manipulation and other abusive short selling practices." Short sellers raked in $378.9 million in paper profits on Thursday alone from betting against certain regional banks, according to analytics firm Ortex. ABA President and CEO Rob Nichols told Gensler that short selling could be a legitimate financial tool, but his group was "unalterably opposed to short selling practices that distort the markets through manipulation and abuse." He called on Gensler to send a clear message to market players and take appropriate enforcement action against market manipulation and other abusive short selling practices.

☆ US officials are looking into possible market manipulation of regional bank stocks
▼ + stars: | 2023-05-05 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

US and state officials are assessing whether market manipulation is driving volatility in regional bank stocks, Reuters reported. A banking association is asking the SEC to stop short-bets on bank stocks. The Securities and Exchange Commission calls market manipulation "intentional or willful conduct designed to deceive or defraud investors by controlling or artificially affecting the price of securities." The American Bankers Association is urging the SEC to stop short bets in regional bank stocks. Short sellers pulled in nearly $400 million on Thursday from the sell-off in regional bank stocks, according to data from financial analytics platform Ortex.

[1/2] Block Inc logo is seen displayed in this illustration taken, April 10, 2023. Shares of Block, formerly called Square, rose more than 4% in extended trading on Thursday. Prior to market close, its stock was down more than 10% from the beginning of this year. Block has denied the allegations and has said it would explore legal action against the short seller. Short sellers like Hindenburg typically sell borrowed securities and aim to buy these back at a lower price.

FDIC Chair Martin Gruenberg has said the report, to be released at 2:00 p.m. EDT (1800 GMT) on Monday, will address options on deposit insurance coverage levels, excess deposit insurance, implications of risk-based pricing and the adequacy of the regulator's deposit insurance fund, which will take an estimated $20 billion hit from the failure of SVB and a smaller knock of about $2.5 billion from Signature Bank. The FDIC's deposit insurance fund helps to fulfill the agency's guarantee of bank deposits up to $250,000 per person. In the event an insured bank fails, the FDIC uses the deposit insurance fund to pay back customers who maintained accounts under the limit. U.S. Federal Reserve Chair Jerome Powell told Republican lawmakers in March that Congress should re-evaluate limits on the size of federally insured bank deposits. Some analysts have floated a more targeted change: raising the insurance cap for small business accounts used to manage payroll and other transactions.

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