DIRS.INFO The most relevant business & tech news

☆ FDIC unveils rule forcing banks to keep fintech customer data in aftermath of Synapse debacle
▼ + stars: | 2024-09-17 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

The Federal Deposit Insurance Corporation on Tuesday proposed a new rule forcing banks to keep detailed records for customers of fintech apps after the failure of tech firm Synapse resulted in thousands of Americans being locked out of their accounts. That's what happened in the Synapse collapse, which impacted more than 100,000 users of fintech apps including Yotta and Juno. Customers with funds in these "for benefit of" accounts have been unable to access their money since May. Keeping better records would allow the FDIC to quickly pay depositors in the event of a bank failure by helping to satisfy conditions needed for "pass-through insurance," FDIC officials said Tuesday in a briefing. While FDIC insurance doesn't get paid out in the event the fintech provider fails, like in the Synapse situation, enhanced records would help a bankruptcy court determine who is owed what, the officials added.

Persons: Biden Organizations: Federal Deposit Insurance Corporation, FDIC, Federal Register, Bank, JPMorgan Chase

☆ The Hard-Partying Lawyers Who Get Negligent Companies to Pay Billions
▼ + stars: | 2024-09-05 | by ( Jack Newsham | ) www.businessinsider.com time to read: +23 min

In 2023, mass-tort lawyers spent $152 million on TV ads and millions more on social media. The data provider X Ante estimated that in 2023, mass-tort lawyers spent $152 million on TV ads and millions more on social media. The decades that followed mass torts' onset on the national stage showed the big risks and big rewards of mass torts. AdvertisementIn a class action, a settlement is public, and the judge has to approve the lawyers' fees. But others are confident that indebted mass-tort lawyers can bounce back from a few bad bets.

Persons: Mike Papantonio, Pap, Johnson, Paul Cody, Bayer, Chris Seeger, audibles, Budd, Ness Motley, Motley Rice, South Carolina —, doling, Seeger, Wyeth, Phil Federico, Paul Hanly who'd, Federico, Lejeune, who've, Camp Lejeune, mack, Curt Miner, I've, Don Worley, Worley, —, Daniel A, Mark Lanier, wouldn't, Elizabeth Chamblee Burch, Burch, Ellen Relkin, Merck, Vioxx, There's, Lucian Pera, Keller Postman, Jeremy Troxel, Keller, Troxel, Michael McDonald, Warren Postman, Postman, Kelsey Vlamis, Jack Newsham Organizations: Wynn, Vegas, Camp Lejeune, pharma, Supreme, X, Pfizer, Defense, Marines, Veterans, Foreign, US Marine Corps, Johnson, University of Georgia, Business, Intuit, Rihanna, Morning Investments, Fortress Investment, Gramercy Funds, Deepwater, Investments Locations: Camp, Texas, South Carolina, Baltimore, North Carolina, Camp Lejeune, America, Beverly Hills , California, nonbanks

☆ How thousands of Americans got caught in fintech’s false promise and lost access to bank accounts
▼ + stars: | 2024-07-02 | by ( Hugh Son | ) www.cnbc.com time to read: +10 min

Craft had her wages deposited directly into a Yotta account and used the startup's debit card to pay for all her expenses. CNBC reached out to fintech customers whose lives have been upended by the Synapse debacle. Instead of spending years and millions of dollars trying to acquire or become banks, startups got quick access to essential services they needed to offer. They account for 60% of all new fintech account openings, according to data provider Curinos. The FDIC's exact language about whether fintech customers are eligible for coverage: "The short answer is: it depends."

Persons: Natasha Craft, Craft, fintech, Adam Moelis, Sankaet Pathak, Michele Alt, Scott Sanborn, Sanborn, LendingClub, she's, Rick Davies, Taylor Stitch, " Davies, He's, he's, Davies, hasn't Organizations: FedEx, CNBC, Federal Deposit Insurance Corp, Synapse, Indiana FedEx, Disney, Bank, Trust, JPMorgan Chase, Klaros, PayPal, Getty, Financial Technology Association, D.C, Block, Regulators, Federal Reserve, FDIC, Oakland, San, OCC Locations: Mishawaka , Indiana, Craft, Oakland , California, New York City, Santa Barbara , California, Maryland, Bristol , Connecticut, Seattle, Tennessee, Yotta, Boston, Washington, fintechs, Silicon, San Francisco

☆ The economy probably showed gangbuster growth in the third quarter. But will it last?
▼ + stars: | 2023-10-25 | by ( Jeff Cox | ) www.cnbc.com time to read: +5 min

If the projection is correct, it will be the strongest output since the fourth quarter of 2021, when growth was just shy of 7%. However, policymakers, economists and markets will be focused more on forward-looking signals from an economy that repeatedly has defied expectations. For Q3, GDPNow is projecting growth of 5.4%, with more than half — 2.77 percentage points — to come from consumer spending. That expectation intensified during a brief banking industry crisis in March 2023 that the Fed expected would constrain credit enough to bring about a downturn. Central bank officials have raised rates aggressively while professing to not want to drag the economy into recession.

Persons: Spencer Platt, Dow, Joseph LaVorgna, Goldman Sachs, Donald Trump, LaVorgna, Steven Ricchiuto, Ricchiuto, —, Quincy Krosby, that's Organizations: Getty, Gross, Dow Jones, Commerce Department, Nikko Securities America, Federal Reserve, Fed, White, Mizuho Securities USA, Department, Treasury, LPL Locations: Manhattan, New York City, U.S

Legal experts say that if California wins, it could embolden other states to take action against lenders that make high-interest loans to low-income borrowers using what critics call "rent a bank" partnerships. Several nonbank lenders have already exited California, said Saunders, whose group tracks high-interest lenders. In California, OppFi took the unusual step of preemptively suing to try to block the state from taking action. Federal law allows state-chartered banks to lend across state lines at the interest rate legal in their home state. California has urged Dillon to recognize that OppFi decides who to lend to and has a deal with the bank to purchase the loans.

Persons: Lee Jae, Timothy Dillon, Lauren Saunders, California's, OppFi, Saunders, Dillon, Allard Chu, That's, Ron Vaske, Ballard Spahr, Jody Godoy, Andy Sullivan Organizations: REUTERS, California Department of Financial Protection, Los Angeles Superior, California, Federal Reserve, National Consumer Law Center, EasyPay Finance, FinWise Bank, FinWise, Thomson Locations: Seoul, California, Chicago, Utah, U.S, In California, Colorado, New York

☆ PayPal’s stablecoin may be a payments catalyst, but it will face these near-term hurdles, BofA says
▼ + stars: | 2023-08-10 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

PayPal 's new stablecoin — known as PYUSD — has the potential to facilitate payments , but it must overcome several headwinds before it takes off, Bank of America said. "Over the longer term, we expect PYUSD to experience additional adoption headwinds as competition from [central bank digital currencies] and yield-bearing stablecoins increases," the analyst added. "Over the longer term, we expect PYUSD to experience additional adoption headwinds as competition from CBDCs and yield-bearing stablecoins increases," he said. "Investors may have been fine holding non-yield bearing stablecoins, such as USDT and USDC, when rates were close to zero, but yield-bearing stablecoins will likely become increasingly available and attractive." Instead, Bank of America expects PYUSD to target the "largely untapped" market for blockchain-enabled asset transfers, payments and remittances.

Persons: —, headwinds Shah, PYUSD, Shah, — CNBC's Michael Bloom Organizations: PayPal, Bank of America Locations: U.S

☆ Bank Turmoil Is Paving the Way for Even Bigger ‘Shadow Banks’
▼ + stars: | 2023-05-06 | by ( Lauren Hirsch | ) www.nytimes.com time to read: +1 min

Whipsaw trading in shares of regional banks this week made it clear the fallout from three federal bank seizures was far from over. Some investors are betting against even seemingly healthy banks like PacWest, and regulators are gearing up to tack on new capital constraints for small and medium-size lenders. Large banks, though raking in cash, are facing their own constraints, saddled with loans written before interest rates started rising. That means businesses large and small may soon need to look elsewhere for loans. And a growing cohort of nonbanks, which don’t take deposits — including giant investment firms like Apollo Global Management, Ares Management and Blackstone — are chomping at the bit to step into the vacuum.

☆ FDIC mulls loss-sharing with nonbanks to boost bids on failed lenders, Bloomberg reports
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +1 min

May 5 (Reuters) - The U.S. Federal Deposit Insurance Corp (FDIC) is mulling whether to offer loss-sharing agreements to private equity firms and other nonbanks that buy parts of failed lenders, after it was left holding a large portfolio of Signature Bank loans following its collapse, Bloomberg News reported on Friday. Since the FDIC does not regulate nonbanks, the firms cannot bid for an entire lender but such a move could entice them to buy loans and assets at a discount from collapsed institutions and help the FDIC get higher bids, the report said. The FDIC did not immediately respond to a Reuters request for comment. Earlier this week, JPMorgan (JPM.N) entered into a loss-sharing agreement with the FDIC when it agreed to assume all of First Republic's deposits but share losses on certain portfolios including residential and commercial loans. Reporting by Juby Babu in BengaluruOur Standards: The Thomson Reuters Trust Principles.

☆ Bank deposits edge up after record outflows, Fed data shows
▼ + stars: | 2023-04-07 | by ( Dan Burns | ) www.reuters.com time to read: +3 min

Federal Reserve data released on Friday showed deposits at all commercial banks rose to $17.35 trillion in the week ended March 29, on a nonseasonally adjusted basis, from a downwardly revised $17.31 trillion a week earlier. It was the first increase since the start of March and marked an end, for the moment, to a record flight of deposits triggered by the collapses of Silicon Valley Bank and Signature Bank toward the middle of last month. The second and third largest bank failures in U.S. history forced federal regulators to guarantee all deposits at both institutions and prompted the Fed to take emergency actions to restore confidence in the banking system. Deposits rose at both the largest 25 banks by assets and at small and mid-sized banks as well. The Fed said banks had offloaded that amount of assets in each of the two latest weeks, most of it coming in the form of Treasuries and mortgage-backed securities.

☆ IMF's Georgieva sees global growth below 3% in 2023, says robust recovery remains 'elusive'
▼ + stars: | 2023-04-06 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

That is the global lender's lowest medium-term growth forecast since 1990, and well below the average growth of 3.8% seen in the past two decades. Georgieva said strong and coordinated monetary and fiscal policy actions to respond to the COVID-19 pandemic and Russia's invasion of Ukraine had prevented a much worse outcome in recent years, but growth prospects remained weak in both the near- and medium-term given persistently high inflation. "With rising geopolitical tensions and still-high inflation, a robust recovery remains elusive. She said India and China would account for half of global growth in 2023, but about 90% of advanced economies would see a decline in their growth rate this year. Recent bank failures in Switzerland and the United States had exposed risk management failures at specific banks and supervisory lapses.

☆ Jamie Dimon says the banking crisis is not over and will cause ‘repercussions for years to come’
▼ + stars: | 2023-04-04 | by ( Jesse Pound | ) www.cnbc.com time to read: +3 min

Here's what comes next "But importantly, recent events are nothing like what occurred during the 2008 global financial crisis," he added. Stock Chart Icon Stock chart icon JPMorgan Chase, 1-year"Any crisis that damages Americans' trust in their banks damages all banks – a fact that was known even before this crisis. Risks are abundant, and managing those risks requires constant and vigilant scrutiny as the world evolves," Dimon wrote. The JPMorgan CEO instead called for more forward-looking regulation. All of these colliding factors became critically important when the marketplace, rating agencies and depositors focused on them," Dimon wrote.

☆ Risk Panel Discusses Possibility of New Rules for Nonbanks
▼ + stars: | 2023-02-11 | by ( Andrew Duehren | Andrew Ackerman | ) www.wsj.com time to read: 1 min

The Financial Stability Oversight Council on Friday heard a presentation from Treasury Department staff about establishing new oversight of nonbanks. WASHINGTON—The Biden administration’s top financial regulators discussed the possibility of stepping up oversight of financial firms operating outside the banking system, a sign they could move to ease or repeal Trump-era restrictions on regulating nonbank firms such as hedge funds or asset managers. During a closed meeting of the Financial Stability Oversight Council on Friday, regulators heard a presentation from Treasury Department staff about the process for establishing new oversight of nonbanks, the department said in a statement. The panel, charged with detecting risks to the financial system and led by Treasury Secretary Janet Yellen , said that nonbank financial activity was among its priorities for the year.

☆ What Is an SBA Loan?
▼ + stars: | 2023-02-07 | by ( ) www.wsj.com time to read: +13 min

By Tanza LoudenbackEntrepreneurs without a ton of cash or access to affordable financing may want to consider an SBA loan. Types of SBA loansThe most common type of SBA loan is a 7(a) loan. SBA loan rates and repayment termsInterest rates on SBA loans are negotiated between the lender and the borrower, within the SBA’s minimums and maximums. “The big difference is SBA loans tend to have much more favorable terms,” says Chris Hurn, the founder and CEO of Fountainhead, an SBA lender. How to apply for an SBA loanHere are the steps to apply for an SBA loan.

☆ Op-ed: FTX crash shows cryptocurrency market needs bank-like regulation
▼ + stars: | 2022-12-05 | by ( Rob Nichols | Dennis Kelleher | ) www.cnbc.com time to read: +6 min

Instead, many crypto-asset customers had accounts at nonbank crypto firms. This is very similar to what happened at nonbank financial firms during the 2008 financial crash and would have happened when the 2020 pandemic hit if the Fed had not acted so quickly. Finally, this principle doesn't mean that a company has to be a bank to offer financial products or services. Innovation in the financial sector is critical to maximizing benefits for consumers, and fair, properly and consistently regulated competition can drive this process forward. But consumers also expect that the rules that govern providers — whether bank or nonbank — protect them and financial stability.

☆ Biden Officials to Target Nonbanks for Tougher Oversight
▼ + stars: | 2022-11-23 | by ( Andrew Ackerman | ) www.wsj.com time to read: 1 min

Treasury Secretary Janet Yellen advocates for the FSOC to use all the powers granted to it by Congress to rein in risks to financial stability. WASHINGTON—The Biden administration is laying the groundwork to target nonbank firms with stricter federal oversight as regulators grow concerned about financial threats from companies operating outside of the tightly supervised banking system. The move from the Financial Stability Oversight Council, a panel of top regulators tasked with monitoring the stability of the financial system, would likely ease or repeal Trump-era restrictions that sought to limit the regulation of nonbanks, according to people familiar with the process.

☆ How to Choose the Best High-Yield Savings Account for You
▼ + stars: | 2022-06-09 | by ( ) www.wsj.com time to read: +9 min

By Beth PinskerIf you search for the best available high-yield savings offers, it can be hard to tell whether what you see advertised is being offered by an actual bank. High-yield savings accounts offer a much higher return for customers on savings than the national average, although there’s no fixed scale. What should you look for in a high-yield savings offer? What is FDIC insurance and why is it important for high-yield savings accounts? Which banks can I trust for a high-yield savings account?

☆ How to Choose the Best High-Yield Savings Account
▼ + stars: | 2022-06-09 | by ( ) www.wsj.com time to read: +9 min

Search resuls for: "nonbanks"

17 mentions found