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☆ What’s going on with China’s shadow banking system?
▼ + stars: | 2023-09-06 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

The world’s second-largest economy is grappling with growing financial distress, which means big problems for the nation’s nearly $3 trillion shadow banking industry. What’s happening: Shadow lenders, including trust firms, operate outside of the formal banking system. That’s because shadow banks are not just a problem in China. The key concern, said Towes, is whether Western organizations have loaned to shadow banks and are now vulnerable. Production cuts by OPEC+, which produces 40% of the world’s crude oil, have helped send oil prices higher in recent months, a development that could have repercussions for inflation and interest rates.

Persons: they’ve, ”, Phillip Toews, “ we’ve, Toews, that’s, Goldman Sachs, Matt Egan, That’s, It’s, “, Jan Hatzius, ” Hatzius, —, CNN’s Hanna Ziady, Brent, ” Stephen Innes Organizations: CNN Business, Bell, New York CNN, Asset Management, US, IMF, Global, Federal Reserve, West Texas, Organization of, Petroleum, Saudi Ministry of Energy Locations: New York, China, Beijing, Europe, Saudi Arabia, Russia, OPEC

☆ JCPenney CEO: Working families are struggling to get by as inflation bites
▼ + stars: | 2023-09-05 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN —JCPenney CEO Marc Rosen sees plenty of evidence that working-class families are struggling. “And that customer is facing a tougher economic environment.”The JCPenney CEO pointed to the snowballing effect inflation has had on family budgets, noting that the typical household is spending about $700 more per month than they did two years ago for the same goods and services. He pointed to strong private brand sales for apparel as well as for home goods like cookware and small appliances such as blenders and toasters. The JCPenney CEO wouldn’t directly answer whether the department store plans to return to the public markets through an initial public offering. “We think there are a lot of advantages right now to being a private company,” Rosen said, noting that JCPenney’s owners are reinvesting in the company and are taking a “long-term perspective” on that investment.

Persons: Marc Rosen, Liz Claiborne, Rosen, ” Rosen, delinquencies, “, JCPenney, wouldn’t Organizations: New, New York CNN, CNN, “, JCPenney, New York Federal Reserve, ” Bank of America, Simon Property Group, Brookfield Asset Management Locations: New York

☆ Goldman Sachs cuts US recession odds to 15% as economic optimism grows
▼ + stars: | 2023-09-05 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

New York CNN —Goldman Sachs is increasingly confident that the US economy will stick the soft landing that many thought was nearly impossible to pull off. In a research report published Monday night, Goldman Sachs lowered its estimated chance of a US recession over the next 12 months to just 15%. Goldman Sachs pointed to “solid” job growth and rising real (inflation-adjusted) wages that should allow real disposable income to “reaccelerate” next year. The August jobs report, released late last week, showed that hiring remains solid, though it has slowed from the blockbuster pace of earlier in the post-pandemic recovery. “The August jobs report couldn’t be much better,” Moody’s Analytics chief economist Mark Zandi wrote Friday on X, formerly known as Twitter.

Persons: New York CNN — Goldman Sachs, Goldman Sachs, That’s, It’s, ”, “, Jan Hatzius, ” Hatzius, Hatzius, reaccelerate ”, Mark Zandi Organizations: New, New York CNN, Federal Reserve, Wall Street, Bloomberg, Atlanta Locations: New York

☆ Hurricane Idalia's price tag could cost $20 billion in damage, according to Moody's Analytics
▼ + stars: | 2023-08-31 | by ( Matt Egan | ) edition.cnn.com time to read: +1 min

CNN —Hurricane Idalia caused billions of dollars in damage, but the price tag won’t be nearly as high as other major hurricanes, Moody’s Analytics said Thursday. According to preliminary cost estimates from Moody’s, Hurricane Idalia caused between $12 billion and $20 billion in damage and lost output. For context, Hurricane Ian, which made landfall in Western Florida last year as a Category 4 storm, caused an estimated $112.9 billion of total damage in the United States, according to the National Hurricane Center. Not only that, but Kamins notes that property values in the Big Bend are lower than the rest of the state. Moody’s RMS plans to release official estimates of insured losses in the next two weeks.

Persons: Idalia, Ian, Adam Kamins, Kamins, ” Kamins Organizations: CNN, National Hurricane Center, Moody’s Locations: Moody’s, Western Florida, United States, Florida’s Big Bend

☆ Labor Day weekend gas prices are near all-time highs
▼ + stars: | 2023-08-31 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

New York CNN —Drivers hitting the roads this Labor Day weekend will be greeted by historically high gas prices for this time of the year. The good news is that gas prices are still well below the peak set in June 2022. Psychologically important pricesIt’s worth noting that while gas prices are high for this point of the calendar, these figures aren’t adjusted for inflation. Still, consumers are very sensitive to increases in gas prices, in part because of how visible they are. In fact, the Conference Board blamed the recent uptick in gas prices for driving down consumer confidence in August.

Persons: ”, John LaForge, Andy Lipow, – can’t, “ Organizations: New, New York CNN, Drivers, Labor, CNN, AAA, Wells, Investment Institute, Biden, Lipow Oil Associates, US Energy Information Administration, Conference Board Locations: New York, Illinois, Washington , Arizona, California, Russia, Saudi Arabia

☆ Wells Fargo overcharged nearly 11,000 investment accounts with advisory fees, SEC alleges
▼ + stars: | 2023-08-25 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —For years, Wells Fargo overcharged almost 11,000 investment advisory accounts about $27 million in fees, federal regulators alleged on Friday. Wells Fargo agreed to pay a $35 million civil penalty to settle the matter, without admitting or denying the SEC charges. The agency said Wells Fargo also paid account holders about $40 million — including interest — to reimburse customers who’d been overcharged. The SEC also said Wells Fargo overcharged some clients who opened accounts prior to 2014 through the end of 2022. Wells Fargo spokesperson Caroline Szyperski said Wells Fargo Advisors conducted a “thorough review” of accounts and has fully reimbursed affected customers.

Persons: Wells, Wells Fargo, “, ” Gurbir Grewal, Edwards, Caroline Szyperski, “ We’re Organizations: New, New York CNN, Securities, Exchange Commission, SEC, Wells Fargo Advisors, Wachovia, Advisors Locations: New York, Wells Fargo overcharged, Wells, Wells Fargo

☆ As cracks emerge in Russia, US plots fresh sanctions to crank up pressure on Moscow
▼ + stars: | 2023-08-24 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN Business —Washington plans to keep piling pressure on Russia through additional sanctions in a bid to force hard choices in Moscow, a senior US official tells CNN. The preparations of further economic punishments come as cracks emerge in Russia’s economy and society because of the war in Ukraine and sanctions from the West. The scramble in Russia to shore up the crumbling ruble shows the pressure on Moscow is working, the senior US official told CNN. The United States has steadily imposed sanctions on Russia and the US official said Washington plans to continue doing so in a bid to ramp up pressure. Former CIA director David Petraeus argues now is the time for the United States to crank up the pressure on Russia.

Persons: . Wagner, Yevgeny Prigozhin, Putin, David Petraeus, “, ” Petraeus, Petraeus, ”, Ed Mills, Raymond James, Mills, Biden Organizations: New York CNN Business —, CNN, ., US, United, Washington, CIA, KKR Global Institute Locations: New York CNN Business — Washington, Russia, Moscow, Ukraine, United States, South Africa, Washington, United

☆ Could Fed Chair Powell’s Jackson Hole speech send stocks plunging again?
▼ + stars: | 2023-08-24 | by ( Krystal Hur | ) edition.cnn.com time to read: +6 min

New York CNN —With Nvidia earnings out of the way, the next test for US markets is Federal Reserve Chair Jerome Powell’s annual speech at the Jackson Hole economic summit on Friday. “In August of 2022, Powell knew the Fed had several more rate hikes to go. Macy’s sounds the alarm on credit card delinquenciesMacy’s is warning of a spike in customers who are failing to make credit card payments, adding to the evidence of mounting financial stress on consumers, reports my colleague Matt Egan. This situation is hurting Macy’s business, driving down credit card revenue by 36% year over year and contributing to a quarterly loss, he said. Citing worsening consumer leverage metrics, Macy’s is bracing for a further increase in “bad debt” in its credit card portfolio.

Persons: Jerome Powell’s, Powell, ”, — Powell, “, Tom Graff, Matt Egan, ” Adrian Mitchell, Danielle Wiener, Bronner, Qiana Di, Di Bari, Read Organizations: CNN Business, Bell, New York CNN, Nvidia, Kansas, Fed, Dow Jones, “, Bureau of Labor Statistics Locations: New York, Wyoming, Maui, United States, Qiana Di Bari, Lahaina, Kahului

☆ Macy’s sounds the alarm on credit card delinquencies
▼ + stars: | 2023-08-23 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

This situation is hurting Macy’s business, driving down credit card revenue by 36% year over year and contributing to a quarterly loss, he said. Citing worsening consumer leverage metrics, Macy’s is bracing for a further increase in “bad debt” in its credit card portfolio. “I think the credit card revenue is an indication of some of the pressures that we’re actually seeing on the consumer,” Mitchell said. Consumer credit card debt topped $1 trillion during the second quarter for the first time on record, according to the New York Federal Reserve. More concerningly, new credit card and auto loan delinquencies have now surpassed pre-Covid levels, according to Moody’s Investors Service.

Persons: New York CNN —, ” Adrian Mitchell, Macy’s, ” Mitchell, ” Macy’s, Locker Organizations: New, New York CNN, Citibank, Consumer, New York Federal Reserve, Moody’s Investors Service, Credit Locations: New York, Wells

☆ Goldman Sachs: A government shutdown would be ‘manageable’ for the economy. That’s why it’s likely to happen
▼ + stars: | 2023-08-21 | by ( Matt Egan | ) edition.cnn.com time to read: +5 min

New York CNN —Goldman Sachs is warning clients that Washington is on a collision course with its first government shutdown in five years. A shutdown later this year would wipe out 0.2 percentage points from growth per week, according to Goldman Sachs projections. Assuming just “modest” economic and market impact, a government shutdown should have “little effect” on central bank policy, according to Goldman Sachs. However, Goldman Sachs said a “prolonged” shutdown that starts in October could add to the arguments in favor of the Fed keeping policy on hold at the November meeting. The 2013 shutdown delayed the release of most federal economic reports, including ones on inflation, jobs and retail sales.

Persons: New York CNN — Goldman Sachs, ” Goldman Sachs, Goldman Sachs, Greg Valliere, Kevin McCarthy, ” Valliere Organizations: New, New York CNN, Justice Department, Fitch, Washington, Social Security, AGF Investments, Federal Reserve Locations: New York, Washington, Ukraine, —

☆ Alleged Russian crime boss sanctioned by Ukraine owns a major stake in US biotech firm
▼ + stars: | 2023-08-21 | by ( Matt Egan | ) edition.cnn.com time to read: +13 min

Buried in corporate filings is another relationship that is central to Humacyte: Russian billionaire Gavril Yushvaev is the company’s second-largest individual shareholder. Humacyte: Russian billionaire has no ‘control’ over firmYushvaev has not been sanctioned by the US government. “There are patients walking today on their own limbs who would not be doing so without access to the HAV to repair their damaged arteries,” a Humacyte spokesperson said. ‘It shows poor judgment’Yushvaev was brought in as an accredited private investor by Credit Suisse’s capital markets advisory group, a Humacyte spokesperson told CNN. Dougan does not personally know Yushvaev, a Humacyte spokesperson told CNN.

Persons: — Weeks, Kathleen Sebelius, Gavril Yushvaev, Yushvaev –, ”, Yushvaev, ” Forbes, Dann, Charles Whitehead, That’s, Steven Tian, Putin, Vladimir Putin, Trump, Sebelius, Humacyte, Obama, ” Yushvaev, Yale’s Tian, Whitehead, “, ” It’s, Brady Dougan, Dougan, Laura Niklason, ’ Yushvaev, Jeff Sonnenfeld, Sonnenfeld, ” Humacyte, Lawrence Ward, Ward, Eleanor Bloxham, ” Bloxham, ’, Lyft, Mother Jones Organizations: New York CNN, Pentagon, Nasdaq, US Department of Defense, CNN, Securities and Exchange Commission, Ukraine, Pepsico, Cornell Law School, BlackRock, Vanguard, Yale School of Management’s, Institute, Treasury Department, Kremlin, Credit, Ayabudge, Credit Suisse, Humacyte, PTC, Yale, Yushvaev, SEC, “, Soviet, US Treasury, Dorsey, Whitney’s, Value Alliance, The Department of Defense, DOD, Cornell, Russia Locations: Ukraine, North Carolina, Humacyte, Russian, Russia, Crimea, Cypriot, Yale, Bloxham, Lyft

☆ House GOP subpoenas Citibank over Jan. 6th 'back-channel' cooperation with the FBI
▼ + stars: | 2023-08-18 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

In a Thursday letter to Citibank, Jordan said Citi declined to voluntarily provide information to lawmakers and its lawyers indicated they would only comply with a subpoena. Lawmakers had requested information from seven banks: PNC, Citibank, Bank of America, Wells Fargo, JPMorgan, Truist and US Bank. Among those seven banks, Citibank was the only one that hadn’t voluntarily complied with the request, a person familiar with the matter told CNN. The subpoena compels Citibank to produce requested documents sought by the House Judiciary Committee and Select Subcommittee on the Weaponization of the Federal Government, according to Jordan. “Federal law enforcement’s use of back-channel discussions with financial institutions as a method to investigate and obtain private financial data of Americans is alarming,” Jordan wrote.

Persons: Jim Jordan, Jordan, Lawmakers, hadn’t, “, ” Jordan, Christopher Wray, Wray, that’s, ”, Donald Trump, Annie Grayer Organizations: New, New York CNN —, Citibank, FBI, Citi, PNC, Bank of America, JPMorgan, US Bank, CNN, House, Federal Government, Republican, CNBC . House Republicans, Capitol Locations: New York, Wells Fargo, Jordan, Ohio, Washington ,, Sentinel, “

☆ As gas prices hit 10-month highs, Citi warns major hurricanes could ‘massively’ disrupt supplies
▼ + stars: | 2023-08-17 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

Oil prices could still fallFor consumers, the good news is that, outside of the risk of a bad hurricane season, Citi is bearish on oil prices. The Wall Street bank’s baseline forecast is that oil prices will drop in the coming months, a scenario that would cool gas prices. “It’s something we certainly keep a close eye on,” a White House official told CNN earlier this week. As recently as Memorial Day and July 4th, consumers were saving big on gas prices when measured against the same point last year. “Energy markets are volatile and gas prices can fluctuate,” the White House official told CNN.

Persons: Hilary, Joe Biden’s, “, CNN’s Erin Burnett, Janet Yellen, heatwaves Organizations: CNN, AAA, That’s, Citigroup, National Hurricane Center, Coast, Citi, White, “ Energy, White House Locations: Russia, Saudi Arabia, Gulf of Mexico, Mexico, California, Washington, Colorado , Arizona, Illinois, AAA . Indiana , Pennsylvania, New York

☆ Some of America's poorest communities are landing clean energy projects
▼ + stars: | 2023-08-16 | by ( Matt Egan | ) edition.cnn.com time to read: +5 min

This is just one example of a struggling community that has landed a major investment in clean energy since President Joe Biden signed the Inflation Reduction Act into law exactly one year ago Wednesday. The $750 billion law — the largest climate investment in US history — has helped spark a boom in private investment, especially in clean energy, electric vehicles and batteries. Importantly, many of these clean energy projects are set to be built in communities that really need the help. New plants could bring people into the labor force who have been left behind,” the Treasury analysis finds. The $4.4 billion investment is expected to create 300 new jobs and support countless existing ones.

Persons: Joe Biden, —, Wally Adeyemo, ‘, it’s, ” Daniel Yergin Organizations: New, New York CNN, Adams Fork Energy, CNX Resources, Treasury Department, CNN, Honda, LG Energy, Treasury, Bank of America, ” Bank of America, P, P Global Locations: New York, Mingo County , West Virginia, Mingo County, Fayette County , Ohio, Columbus, Marysville , Ohio

CNN —Earnings season continues this week with Target, Walmart, TJ Maxx parent company TJX and other high-profile retailers set to release their quarterly results. That shift showed up in earnings results for retailers including Home Depot and Target earlier this year. US retail spending, which is adjusted for seasonality but not inflation, inched up in June but fell below economists’ expectations. Americans feel hopeful inflation is coolingAmericans are feeling more optimistic that inflation is trending down now and into the future. Consumer spending expectations ticked up from the month before but remain below levels seen during the past year, according to the report.

Persons: TJ Maxx, hasn’t, Christina Hennington, Doug McMillon, they’re, Matt Egan Organizations: CNN Business, Bell, CNN, Target, Walmart, TJ, Shoppers, Home Depot, Refinitiv, “, University of Michigan’s, Consumer, Federal Reserve Bank of New, Federal Reserve, AAA, Labor Locations: Federal Reserve Bank of New York, Russia, Saudi Arabia

☆ UBS to pay $1.4 billion for selling toxic mortgages prior to the Great Recession
▼ + stars: | 2023-08-14 | by ( Matt Egan | ) edition.cnn.com time to read: +1 min

New York CNN —The Justice Department announced on Monday that UBS has agreed to pay $1.4 billion in penalties for allegedly defrauding investors by selling mortgage-backed securities that blew up during the Great Recession. The settlement resolves the final case brought by the DOJ to investigate the role of Wall Street firms in the 2008 financial crisis. In a statement, UBS described the agreement as a settlement of a “legacy matter” and said it has been fully provisioned in prior periods. Other Wall Street firms including Barclays, Deutsche Bank and Goldman Sachs were previously hit by even larger fines to reach toxic mortgage settlements with the US government. All told, prosecutors say they leveled more than $36 billion in fines for conduct that fueled the 2008 financial crisis, including from banks and ratings firms.

Persons: ”, Ryan Buchanan, Goldman Sachs Organizations: New, New York CNN, The Justice, UBS, DOJ, Wall Street, Eastern, of, Northern, Northern District of, Barclays, Deutsche Bank Locations: New York, of New York, Wall, Northern District, Northern District of Georgia

☆ US gas prices climb to highest level in nearly 10 months
▼ + stars: | 2023-08-14 | by ( Matt Egan | ) edition.cnn.com time to read: +1 min

The national average for regular gasoline hit $3.85 a gallon on Monday, according to AAA. That’s the highest level since October 19 and comes just weeks ahead of Labor Day weekend when millions of Americans will hit the roads. The summer spike in gas prices has eased, with the cost to drivers moving just gradually higher more recently. The national average is up by two cents over the past week. Those year-over-year savings have nearly vanished, with the national average down just 11 cents from this point last summer.

Organizations: New, New York CNN, AAA, Labor, Utah ., Saudi, Saudi Ministry of Energy Locations: New York, Russia, Saudi Arabia, Arizona , Illinois, Utah, Utah . Colorado, Michigan

☆ US inflation means families are spending $709 more per month than two years ago
▼ + stars: | 2023-08-11 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —US inflation has had a snowballing effect on family budgets. The typical American household spent $709 more in July than they did two years ago to buy the same goods and services, according to Moody’s Analytics. That figure underscores the cumulative impact high inflation has had on consumer finances — even as price growth has cooled considerably in recent months. Most of that increase in spending is driven by housing costs, which have surged, Zandi told CNN in an email on Friday. Inflation-adjusted earnings are stuck in 2019Even though prices have soared, real earnings, which adjust for inflation, are stuck at late 2019 levels.

Persons: Mark Zandi, Zandi, ” Zandi Organizations: New, New York CNN, Moody’s, Twitter, CNN, Federal, ” Bank of America Locations: New York

☆ The rate of Americans failing to pay credit cards and car loans climbs above pre-Covid levels
▼ + stars: | 2023-08-10 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New credit card and auto loan delinquencies have now surpassed pre-Covid levels, according to a Wednesday report issued by Moody’s Investors Service. This metric is now ahead of where it was in the second quarter of 2019, before the Covid-19 pandemic rocked the economy. The rate of new auto loan delinquencies is also on the rise, hitting 7.3% in the second quarter, compared with 6.9% in the first quarter. Auto loan and credit card delinquencies remain well below Great Recession levels. The good news from the Moody’s report is that fewer Americans are falling behind on their mortgage payments.

Persons: New York CNN —, That’s, Moody’s Organizations: New, New York CNN, Moody’s Investors Service, New York Federal Reserve, Auto Locations: New York

☆ Is it time to worry about stagflation?
▼ + stars: | 2023-08-10 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +8 min

CNN —For the past two years, economists have been worrying about the risks of high inflation rates. But far less attention has been given to inflation’s sibling: stagflation. Stagflation is the combination of high inflation and a slowing economy. The current state of stagflation: Last year, then-World Bank President David Malpass warned that stagflation risks were high because of supply chain disruptions stemming from lockdowns in China and bans on Russian oil. What’s happening now: The risk of stagflation varies significantly across different regions of the globe.

Persons: Stagflation, David Malpass, Janet Yellen, ”, Lan Ha, stagflation, Andrew Kenningham, “, That’s, ” Kenningham, ” Ha, Ha, Parija Kavilanz, don’t, Dallin Hatch, Biden, Joe Biden, Trump, Matt Egan, It’s Organizations: CNN Business, Bell, CNN, Federal, World Bank, Euromonitor, Capital Economics, Bank of England’s, National Institute of Economic, Social Research, Trump Locations: Israel, lockdowns, China, Europe, Germany, Ukraine, Saudi Arabia

☆ Under Biden, US oil production is poised to break Trump-era records
▼ + stars: | 2023-08-09 | by ( Matt Egan | ) edition.cnn.com time to read: +6 min

And yet, on his watch, US oil production is poised to shatter all-time records set during the Trump administration. If anything, the outlook for US oil production has brightened recently – in large part because oil prices have rebounded from recession fears and drillers have become more efficient. Climate vs. inflationWhen and if the oil production record falls, don’t expect any fireworks from the White House. Last week, Saudi Arabia vowed to extend its oil production cut for at least another month. It’s also true that domestic oil production -— unlike prices -— has been slow to recover from the Covid-19 crash.

Persons: Joe Biden, Trump, It’s, Biden, ”, Hunter Kornfeind, it’s, Mike Pence, Joe Biden’s, Pence, Barack Obama, “, Matt Smith, ” Biden, That’s, Kornfeind Organizations: New York CNN Business, Rapidan Energy, drillers, US Energy Information Administration, Strategic Petroleum Reserve, EIA, Exxon, Rapidan Energy Group, American Petroleum Institute, Biden, CNN, “ Locations: Saudi Arabia, Texas, Americas, Russia

☆ What does Moody’s downgrade mean for markets?
▼ + stars: | 2023-08-09 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

CNN —Moody’s on Monday evening downgraded 10 US banks and put the credit ratings of six others on review, an indication that the agency could also eventually downgrade those institutions. Some investors say that while the Moody’s downgrade isn’t groundbreaking, it’s a reminder that the economy, and markets, still have challenges ahead. Moody’s downgraded Commerce Bank, BOK Financial, M&T Bank, Old National Bank, Prosperity Bank, Amarillo National Bank, Webster Financial, Fulton Financial, Pinnacle Financial and Associated Bank. Wall Street firms fined $549 million for using WhatsApp and other channelsWells Fargo is among a number of Wall Street firms that admitted Tuesday to using WhatsApp, Signal and other messaging platforms for “off-channel” communications in violation of federal recordkeeping requirements. The Securities and Exchange Commission said the Wall Street firms acknowledged wrongdoing and have agreed to pay penalties totaling $289 million, reports my colleague Matt Egan.

Persons: CNN — Moody’s, JPMorgan Chase, Wells, Goldman Sachs, BNY, Cullen, Frost, ” Moody’s, ”, Kara Murphy, Fitch, Christopher Marinac, Janney Montgomery Scott, Price, Matt Egan, Houlihan Lokey, Alicia Wallace Organizations: CNN Business, Bell, CNN, Bank, Dow Jones, Nasdaq, JPMorgan, Banking, BNY Mellon, Northern Trust, Frost Bankers, Truist Financial, US Bank, Moody’s, Commerce Bank, BOK, T Bank, National Bank, Prosperity Bank, Amarillo National Bank, Webster Financial, Fulton Financial, Pinnacle Financial, Associated Bank, PNC Financial Services, Financial, Citizens Financial, Fifth Third Bank, Huntington Bank, Regions Financial, Cadence Bank, FNB Corp, Simmons, Ally Financial, Bank OZK, Valley Bank, Signature Bank, Federal Reserve, Kestra Investment Management, Consumer, Wall Street, Securities, Exchange Commission, SEC, BNP, SG Americas, BMO Capital Markets, Mizuho Securities, SMBC Nikko Securities, Federal Reserve Bank of New Locations: Wells Fargo, Amarillo, Marinac, Wells, SMBC Nikko Securities America, WhatsApp, Federal Reserve Bank of New York, York

☆ Regulators fine Wall Street firms $549 million for using WhatsApp and other channels to discuss business
▼ + stars: | 2023-08-08 | by ( Matt Egan | ) edition.cnn.com time to read: +1 min

New York CNN —Wells Fargo and a slew of other Wall Street firms admitted Tuesday to using WhatsApp, Signal and other messaging platforms for “off-channel” communications in violation of federal recordkeeping requirements. The Securities and Exchange Commission said the Wall Street firms acknowledged wrongdoing and have agreed to pay penalties totaling $289 million. The SEC said the firms violated federal securities laws by failing to maintain or preserve the “substantial majority” of these communications. Another regulator, the Commodity Futures Trading Commission, also fined four of the same Wall Street firms for failing to maintain records and failing to supervise matters related to their businesses. The CFTC hit Bank of Montreal with a $35 million fine and a $75 million fine each for BNP Paribas, Societe Generale and Wells Fargo.

Persons: Wells, Houlihan Lokey, ” Sanjay Wadhwa Organizations: New, New York CNN, Securities, Exchange Commission, Wall Street, SEC, BNP, SG Americas, BMO Capital Markets, Mizuho Securities, SMBC Nikko Securities, Futures Trading Commission, CFTC, Bank of Montreal, BNP Paribas, Societe Generale Locations: New York, Wells Fargo, SMBC Nikko Securities America, WhatsApp

☆ US inflation: Multiple rate hikes are still needed, says top Fed official
▼ + stars: | 2023-08-07 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —A senior official at the Federal Reserve is pushing back against growing hopes on Wall Street that the central bank could be nearly done raising interest rates. In a pair of speeches on Saturday and on Monday, Fed Governor Michelle Bowman warned that multiple rate hikes could be required to get inflation back to healthy levels. By contrast, many investors and some leading economists have been predicting the Fed will raise interest rates just one more time, or perhaps none. “We expect the decline in core inflation to more than outweigh the mid-year resilience in growth and wage data,” Goldman Sachs economists wrote on Friday. Investors are pricing in a 26% chance of one quarter-point rate hike through the end of the year and just a 2.5% chance of multiple hikes.

Persons: New York CNN —, Michelle Bowman, Bowman, Atlanta . Bowman, ”, ” Bowman, Goldman Sachs, ” Goldman Sachs Organizations: New, New York CNN, Federal, Fed Locations: New York, Atlanta ., Colorado Springs , Colorado

☆ Wells Fargo says missing deposits glitch is resolved
▼ + stars: | 2023-08-05 | by ( Matt Egan | ) edition.cnn.com time to read: +1 min

New York CNN —The Wells Fargo glitch that made some customers’ direct deposits disappear from their bank accounts is over, the bank said on Saturday. “All accounts have been resolved and are showing accurate balances and transactions,” Wells Fargo spokesperson Amy Bonitatibus said in a statement to CNN. Wells Fargo said only a “limited number” of customers were unable to see recent check deposit transactions. Back in March, Wells Fargo reported the same problem of some customers’ direct deposits not showing up, according to an NBC News report. If customers notice missing funds from a Wells Fargo account or any bank account, they should contact the bank directly, according to the US Office of the Comptroller of the Currency.

Persons: ” Wells, Amy Bonitatibus, “, Wells Fargo Organizations: New, New York CNN, ”, CNN, NBC Locations: New York, Wells Fargo, Wells

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