BofA backlash, Facebook’s bad deal and selling a century-old bank: Top stories of the week

The Trump administration's stance on immigration is causing headaches for some banks, how a tiny black-owned bank is turning to fintech to turn itself around; why banks are rejecting Facebook's offer to share data and more from this week's most-read stories.

BofA faces backlash over questions about customers' citizenship
Bank of America branch
The bank's predicament suggests that the Trump administration's hard-line stance on immigration can cause headaches for financial institutions.

(Full story here.)
The painstaking process to sell a family's century-old bank
The family that owns KleinBank negotiated for employee incentives for nonrelatives and retention awards as part of the Minnesota bank's proposed sale to Old National.

(Full story here.)
Banks won't 'like' this offer from Facebook
Facebook is seeking customer data from big banks. Executives say it's not clear what the benefit would be, but the drawbacks are easy to tally.

(Full story here.)
A blue wave is coming. Banks need to get ready
Rep. Maxine Waters, D-Calif.
The Ohio special election is the latest sign that Democrats are well positioned to retake the House in midterm elections this fall.

(Full story here.)
How this tiny black-owned bank is turning itself around with fintech
Staff meeting South Carolina Community Bank
A $52 million-asset African-American-owned bank in South Carolina is hoping its efforts can be expanded to help underbanked consumers nationwide.

(Full story here.)
Fannie, Freddie could need $78B in crisis: FHFA
Fannie Mae headquarters
The mortgage giants Fannie Mae and Freddie Mac would have to draw as much as $78 billion in the event of a serious economic crisis, according to stress test results released Tuesday by the housing regulator.

(Full story here.)
Senate Dem demands Wells Fargo explain error that led to 400 foreclosures
Sen. Brian Schatz, D-Hawaii
Sen. Brian Schatz, D-Hawaii, said it is hard to imagine how Wells Fargo's $8 million remediation plan would correct a mistake that led to 400 wrongful foreclosures.

(Full story here.)
'Still a real need for … human interaction' in retail banking's future
Tory Nixon
Tory Nixon, who became Umpqua's chief banking officer this spring, is trying to drive more customers to use mobile banking (only 15% do so now industrywide) without alienating them in the process.

(Full story here.)
Banks earning less from overdrafts, but critics still find fault
AB-07082018-OVERDRAFT (4).png
There's much for banks to like — and for consumer advocates to dislike — in a report on the industry's overdraft policies released Tuesday by the Center for Responsible Lending.

(Full story here.)
What's missing from the OCC's fintech charter
Comptroller of the Currency Joseph Otting
The agency's decision to offer special-purpose charters for fintech companies raises questions about how those institutions will be overseen and the risks they could pose to the system.

(Full story here.)