BANKTHINK

morning scan

Morning Scan: CFTC Wins Overseas Swaps Suit; Credit Suisse in Trouble with Fed

Receiving Wide Coverage ... A Win for the CFTC: A federal judge has given the Commodity Futures Trading Commission a green light to regulate overseas swaps trading. Citing the CFTC's mandate under the Dodd-Frank Act, the judge "dismissed arguments by three Wall Street trade groups that the CFTC overstepped its authority in issuing new rules and guidance related to overseas swaps transactions," the Wall Street Journal reports. The New York Times suggests the ruling signals a…

Morning Scan: Banks Vie for No. 1 Slot in Apple Pay; Citi Nears IPO for One Main

Receiving Wide Coverage ... Apple Pay's Ripple Effects: Big banks are vying to have their cards at the top of iPhone users' mobile wallets when Apple Pay debuts next month. Apple has yet to release details of how its mobile payments system will work, but the Financial Times reports that everyone is betting consumers will be able to select a particular card as the default payment option. That's a scary prospect for lenders like the San…

Morning Scan: Novo Banco Turnover; U.S. Flips Bankers for Rate-Rigging Probe

Receiving Wide Coverage ... More Tumult at Portuguese Bank: The "good bank" created after the government rescue of Portuguese lender Banco Espírito Santo has a new leader after its top management team resigned Saturday. Portugal's central bank on Sunday appointed Lloyds Banking Group executive Eduardo Stock da Cunha to head Novo Banco. Stock da Cunha "will have the difficult task of retaining customers at the bank … while it prepares itself for a sale, which Bank…

Morning Scan: Banks Partner with Apple, but Retailers Resist; Dimon's Recovery

Receiving Wide Coverage ... Apple Pay Dissected: Apple Pay "respect[s] our role in the ecosystem" of payments, said James Anderson, senior vice president of product development at MasterCard. And therein lies one explanation of why banks were apparently so eager to partner with Apple on its new payments network, despite the fact they're expected to take a hit to some revenue streams (Apple must have a lot of clout, if this statement from the Times is…

Morning Scan: Reactions to Apple Pay; Santander's Succession Plan

Receiving Wide Coverage ... Paying with Apple: Banks have bought into what Apple's selling with its near-field communications-based Apple Pay system, as they like its security features, intuitive user experience and the Apple brand name, and also they harbor the hope that Apple Pay will drive additional credit card usage, as American Banker reported. Retailers, not so much. Yes, starting in October, you'll be able to wave your iPhone 6 in front of an NFC reader…

Morning Scan: Apple Jumps into Payments; Senate Talks Tough

Receiving Wide Coverage ... Paying with Apple: He may not be egotistical like Steve Jobs was, but Tim Cook at least took a stab at making a huge boastful statement. "We've created an entirely new payment process" Cook, Apple's CEO, said at the launch of the iPhone 6 on Tuesday. This statement was made notwithstanding the fact that many of the iPhone's new payments features have already been introduced by others. The new iPhone will be…

Morning Scan: Higher Capital Requirements Coming from Fed; Home Depot Breached

Receiving Wide Coverage ... More Capital Needed: Fed Chair Janet Yellen has pushed for higher capital requirements for SIFIs, and details of the Fed's plans in that area are to be released Tuesday at a Senate Banking Committee hearing, the Wall Street Journal reports. Some larger banks could face a levy as high as 4.5%, as the Fed is looking for a capital surcharge as much as two percentage points higher than the 2.5% maximum in…

Morning Scan: Big Banks' New Legal Front: Derivatives; Union Bank's Aspirations

Wall Street Journal The Fed's giant stash of assets is the equivalent of a semipermanent sovereign wealth fund, argues David Malpass, a deputy assistant Treasury secretary in the Reagan administration, in a Journal op-ed. It's one of the "world's largest and most leveraged bond portfolios, taking massive interest-rate risks." Malpass says the Fed should be coerced into establishing a "clear portfolio wind-down process" to allow it to concentrate on monetary and regulatory policy. Financial Times …

Morning Scan: MetLife Faces SIFI Tag; Apple to Boost Security

Receiving Wide Coverage ... MetLife and the Dreaded S-Word: Much to MetLife’s dismay, the Financial Stability Oversight Council voted Thursday to propose that the firm be designated as a systemically important financial institution. The life insurer’s chief executive Steven A. Kandarian indicated that MetLife may contest being lumped into the group that includes nonbanks American International Group, Prudential Financial and General Electric Capital. The company is "not ruling out any of the available remedies under Dodd-Frank…

Morning Scan: Takeaways Vary on Liquidity Rules; More Prosecutors Head Out the Door

Receiving Wide Coverage ... Parsing the New Liquidity Rule: The newspapers had very different takes on a new liquidity rule requiring large banks to hold enough safe assets to survive at least 30 days in the event of a crisis. The Wall Street Journal says regulators "provided some relief to large U.S. banks" by allowing those with assets between $50 billion and $250 billion to calculate compliance with the rule on a monthly rather than daily…

Morning Scan: Regulators to Vote on Liquidity Rules; Fee Revenue Takes a Dive

Receiving Wide Coverage ... Home Depot Probes Breach: Home Depot may be the latest retailer to have customer credit and debit card information fall prey to a data breach. The home-improvement store is keeping pretty mum about the details of its investigation into so-called "unusual activity." But security expert and blogger Brian Krebs, who broke the story, reported that "the breach may have extended across all of Home Depot's U.S. stores and could date back to…

Morning Scan: Barclays Bids Spain Adios; NY AG to File Buffalo Redlining Suit

Receiving Wide Coverage ... Barclays Tells Spain Adios: Barclays plans to sell its Spanish retail bank, wealth and investment management and corporate banking divisions to Caixabank for $1 billion. The move is part of Barclays' larger effort to scale back in unprofitable markets; the Wall Street Journal reports it will lose $830 million in the sale. "Heard on the Street" suggests since the "sale price valued the Spanish business at about half of book value …

Morning Scan: Cyber Attack Limited to JPMorgan?; iPhone Payments Threat

Editor's note: Morning Scan will not publish on Monday, Sept. 1 in observance of the Labor Day holiday. We'll be back on Tuesday, Sept. 2. Receiving Wide Coverage ... Was JPMorgan Chase the Only Victim? Seven large banks said Thursday that they had no indication that their systems had been breached in the latest cyber attack on financial institutions, the Wall Street Journal and Financial Times both reported. Bank of America, Wells Fargo, U.S. Bancorp, PNC Financial…

Morning Scan: 'Sophisticated' Cyber Attacks on Banks; Lending Club's IPO

Receiving Wide Coverage ... Hacked: JPMorgan Chase and at least four other banks were hacked this summer in a "sophisticated" cyber attack, the Times reports, and the hackers are said to have stolen customers' checking and savings account information. The FBI and Secret Service are investigating whether the hackers have Russian ties. JPMorgan "isn't seeing considerable fraud related to the attack," the Wall Street Journal reports, citing anonymous sources, without really explaining what that vague statement…

Morning Scan: Dodd-Frank Rules Expected; Stumpf Talks

Wall Street Journal Dodd-Frank-mandated rules on providing more information on the quality of the mortgages and other loans that back securities are expected to be finalized Wednesday. The Securities and Exchange Commission's rules on asset-backed securities will require banks to provide data to investors like borrowers' credit scores and debt levels. The idea is to help investors rely less on credit ratings. The SEC is also expected to release rules forcing Moody's, S&P and other debt-rating…

Morning Scan: Hedge Funds Sue BNY Mellon; Community Banks' Bond Sales

Receiving Wide Coverage ... Sued: Several hedge funds have sued Bank of New York Mellon over its trustee role in overseeing payments from bonds on which Argentina defaulted in 2001. The suit, filed in London, seeks access to the interest payments the funds claim they are owed, after a federal judge blocked the payments last month. Wall Street Journal …

Morning Scan: Yellen's Mixed Signals; Banks to Exit Muni Bonds?

Receiving Wide Coverage ... Mixed Signals: Fed Chair Janet Yellen went to Wyoming and all she brought back to Washington, D.C., was a lousy T-shirt, with no better sign whatsoever of when short-term interest rates will rise. At the Kansas City Fed's yearly economic symposium in Jackson Hole, Wyo., Yellen gave a slew of mixed signals on whether she thinks the U.S. job market has improved enough yet to warrant a rise in rates, the Wall…

Morning Scan: B of A's 'Mortgage Sins'; CFPB Can't Stop Revolving Door

Receiving Wide Coverage ... BofA's 'Mortgage Sins': Documents released as part of Bank of America's $17 billion settlement with the U.S. government "read like a highlight reel of the mortgage sins that fed the 2008 financial crisis," the New York Times reports. The Times and the Wall Street Journal focus on a few particularly striking passages. Former Countrywide Financial chief Angelo Mozilo warned in a 2005 email that a possible condo-market crash would be a "financial…

Morning Scan: Countrywide's Mozilo May Face U.S. Suit; BofA to Reach $17B Deal

Receiving Wide Coverage ... BofA's $16.7B Settlement: The Justice Department and Bank of America are expected to announce a $16.7 billion deal Thursday to settle charges the bank misrepresented the quality of its mortgage-backed securities. "The settlement amount is the largest ever reached between the U.S. and a single company, and is approximately equal to the bank's total profit for the past three years," the Wall Street Journal reports. Bank of America chief Brian Moynihan has…

Morning Scan: Another AML Hit for Standard Chartered; BofA's Montag Now Sole COO

Receiving Wide Coverage ... AML Déjà Vu: Standard Chartered has agreed to pay $300 million, accept temporary restrictions on its dollar-clearing activity and cut ties with some business clients in the United Arab Emirates in order to settle charges related to flaws in its system for identifying suspicious transactions. This is the second time the New York State Department of Financial Services has hit the British Bank with an anti-money laundering penalty in just two years.…

Morning Scan: Dorsey Live-Tweets #Ferguson Protests; Is the U.S. Ready for EMV?

Receiving Wide Coverage ... Dorsey Heads to #Ferguson: Twitter co-founder and Square CEO Jack Dorsey joined protestors in Ferguson, Mo., over the weekend as they demonstrated against the police shooting of unarmed African-American teenager Michael Brown. Dorsey, a St. Louis native, documented the protests in tweets, retweets, photos and Vine videos on Saturday and Sunday. Although some of Dorsey's retweets reported fighting and tear gas in parts of Ferguson, his own posts captured peaceful marches, including…

Morning Scan: PwC to Pay $25M for Softening Bank Report; Big Data Too Messy

Receiving Wide Coverage ... PwC's $25M Penalty: Bank auditor PricewaterhouseCoopers has agreed to pay $25 million over charges it watered down a report on sanctions violations by Bank of Tokyo-Mitsubishi UFJ, according to the New York Times. The settlement with the New York State Department of Financial Services would also impose a two-year ban on PwC's ability to do some kinds of consulting work for banks under New York regulation. Bank of Tokyo hired PwC in…

Morning Scan: Banks Load Up on Cheap Debt; Supervalu Hacked?

Receiving Wide Coverage ... Debt for Sale: Get it while it's cheap. Banks are selling bonds in the U.S. at a record pace, thanks to low rates and emerging confidence in the banking sector, the Journal said. Comerica has sold a total of $600 million in bonds this year, the Dallas bank's first bond sales in almost four years. Synchrony Financial, the credit card business spun off from General Electric, JPMorgan Chase and Bank of America…

Morning Scan: Amazon Jumps into Card Readers; New Subprime Mortgage Trend?

Receiving Wide Coverage ... Amazon's Card Reader: Amazon head honcho Jeff Bezos is notorious for his predilection for spending money and his apparent lack of concern with making a profit. So it should come as no surprise when the Journal quotes an Amazon analyst saying the e-commerce giant won't make any money off its new Square-like mobile card reader, Amazon Local Register, which American Banker reported on Wednesday. The Journal notes that while Square has become…

Morning Scan: Housing Recovery Stalls; Ocwen Financial's Woes

Receiving Wide Coverage ... What Housing Rebound? That must have been a dream. Two reports in Wednesday's papers served as ice-cold buckets of water on any hope you may have had that the value of your home was surging. First, the Journal reported on a National Association of Realtors release, which said single-family housing prices rose 4.4% in the 12 month-period that ended in the second quarter; that's the slowest annual pace since 2012. In sum,…

Morning Scan: JPM Sells Private Equity Stake; Usury Charges for Payday Lender

Receiving Wide Coverage ... Sold: JPMorgan Chase is selling half of its $4.5 billion in holdings in its One Equity Partners private-equity unit, in part because of the requirement that banks reduce investments made with their own money, and in part because of new capital requirements. The Journal story on the sale also throws in another reason for selling the business unit, by pulling a quote from Jamie Dimon from a recent earnings conference call: "It…

Morning Scan: Job Market Gains, But Rates to Remain Low; Banks' Enemy

Receiving Wide Coverage ... Recovery and Liftoff: There are signs of an improving economy, yes. Factory orders are up, there are fewer vacancies in apartment buildings. Unemployment is falling, too, the Wall Street Journal and Bloomberg report. But, until there is more significant improvement in the job market and wage growth, Fed Chair Janet Yellen and other Fed officials in all likelihood are going to lean toward keeping short-term interest rates near zero, the Journal says.…

Morning Scan: Credit Scoring Gets a Shake-Up; Bair Warns on TBTF

Receiving Wide Coverage ... Credit Where It's Due: Banks may start offering more affordable loans to a broader range of Americans because of changes in the way credit scores are calculated. FICO will place less weight on unpaid medical debt and exclude all overdue bills that have been settled with collection agencies, according to news reports. "The moves follow months of discussions with lenders and the Consumer Financial Protection Bureau aimed at boosting lending without creating…

Morning Scan: B of A Nears $16B-$17B Deal; Banks' Living Wills 'Too Sanguine'

Receiving Wide Coverage ... BofA's Very Big Deal: Bank of America has reached a tentative agreement with the Justice Department to pay between $16 billion and $17 billion to settle charges related to the sale of shoddy mortgage-backed securities, according to multiple news reports. The expected deal is a bit of an about-face for BofA, which just a few weeks ago was drawing the line at a $13 billion fine and protesting that it was being…

Morning Scan: Regulators Flunk Banks' Living Wills; Hackers Steal 1B Passwords

Receiving Wide Coverage ... Living Wills Need Do-Over: Eleven big banks remain dangerously unprepared to wind down in the event of a crisis, according to U.S. regulators. "The Federal Reserve and the Federal Deposit Insurance Corp. said bankruptcy plans submitted by big banks make 'unrealistic or inadequately supported' assumptions and 'fail to make, or even to identify, the kinds of changes in firm structure and practices that would be necessary to enhance the prospects for' an…

Marketplace
Fiserv is a leading global provider of information management and electronic commerce systems for the financial services industry.
Learn More
Informa Research Services is the premier provider of competitive intelligence, mystery shopping, and compliance testing services to the financial industry.
Learn More
CSC is a leader in private-label, third-party loan servicing with 30+ years of proven experience in delivering effective, cost-effective solutions.
Learn More
Already a subscriber? Log in here
Please note you must now log in with your email address and password.