Banking News from American Banker

Banks' deposit costs fell as the Fed made borrowing cheaper. But signs of increased competition are already emerging, and analysts see a tougher road ahead.

Stephan Feldgoise and Joshua Schiffrin will join Goldman Sachs' management committee; Fidelity Investments is dismissing about 800 personnel as it restructures its technology and product-delivery teams; Citi has hired JPMorgan's André Ross as its country officer and banking head for South Africa; and more in this week's banking news roundup.

Affirm CEO Max Levchin said that the company did not have any plans for AI-spurred layoffs despite the fact that it was using the technology more for software engineering.

The payments company posted strong adjusted earnings following a dramatic downsizing, which management attributed to the influence of artificial intelligence.

Almost 60 SBA loans originated by Community Bank & Trust — West Georgia were classified as noncurrent, according to Small Business Administration records. Last week, Community became the second U.S. bank to fail in 2026.

An April 20 bankruptcy filing accuses Kfir Gavrieli of recruiting friends, family and his synagogue to sign sham contracts that inflated Aspiration's revenue.

The megabank's first investor day in four years offered a comprehensive look at how it plans to grow profits and drive higher returns in the coming years. Part of the strategy involves branch updates.

As gas prices surge, small businesses — particularly in agriculture and transportation — have struggled to keep up. For banks, this has brought a combination of short-term benefits and long-term concerns.

The neobank reported a 25% year-over-year increase in revenue for the quarter ended March 31, with active users jumping 19% to 10.2 million. The company also raised its full-year 2026 guidance and authorized a $200 million share repurchase program.

The newly opened bank founded by big tech executives reached the deposit milestone within its first quarter of operations, according to a recent call report.

On Thursday, Citi will hold its first investor day in four years. The megabank, which has undergone substantial change under CEO Jane Fraser, is expected to share its strategy for driving higher profitability, deploying AI and ramping up shareholder returns.

Public comments on the Office of the Comptroller of the Currency's GENIUS Act implementing regulations highlighted the rift between banks and crypto firms over the permissibility of yield on stablecoin holdings, an issue that has stalled crypto market structure legislation for months.

The proposal is part of what SEC Chairman Paul Atkins calls his "Make IPOs Great Again" agenda.

Opportunity favors the prepared, and Cambridge Savings Bank had been saving for years to buy a nearby rival. Now, as the mutual bank announces plans to acquire First Seacoast Bank, it says it's found "the right deal at the right time."

The payments company said payment volume increased, but net income decreased compared to 2025.

Carter Bankshares wants to widen its footprint in the Carolinas and may look to buy a bank, especially in South Carolina, where it set up a loan production office in November. The Virginia bank recently resolved a long-running dispute with a major commercial borrower.

Wells' latest advisor recruiting coup comes just days after it pulled over a 19-person team formerly managing nearly $6 billion at Morgan Stanley.

Brian Moynihan will continue to wear two hats, thanks to the support of almost 70% of Bank of America's shareholders.

CEO Robin Vince defended the custody bank's use of artificial intelligence Monday, saying that the deployment of AI allows firms to increase their investment capacity.

Two U.S. banks have failed so far in 2026, continuing the recent pattern of smaller lenders collapsing abruptly due to firm-specific issues. January's failure of Metropolitan Capital Bank & Trust and the early May failure of Community Bank & Trust – West Georgia both fit that mold.