Receiving Wide Coverage ...
Another hack: Deloitte said Monday it suffered a cyberattack. But the hacker accessed data affecting only a “very few” of the big accounting firm’s clients and “no disruption has occurred to client businesses, to Deloitte’s ability to continue to serve clients, or to consumers,” the firm said. Wall Street Journal, Financial Times, American Banker
Big changes at AIG: American International Group announced a major reorganization, including disbanding its commercial and consumer units. Going forward, the company’s units will focus on types of insurance. The move is part of AIG’s plan under new CEO Brian Duperreault to expand and make acquisitions following years of contraction.
The changes come in the wake of the decision last Friday by the Financial Stability Oversight Council not to remove the “systemically important financial institution” label from AIG. “One of the most important ramifications of a removal of the so-called SIFI label is that it would make it easier for Mr. Duperreault to make acquisitions, without worrying about the need to obtain Federal Reserve approval,” the Wall Street Journal said. Wall Street Journal, Financial Times
Wall Street Journal
Another SoFi exit: June Ou, Social Finance’s chief technology officer and vice president of engineering — and the wife of former CEO Mike Cagney, who resigned recently in the wake of sexual harassment allegations at the company — is parting ways with the company. Ou will be the fourth senior SoFi executive to leave the firm in the past few months.
Free money: Australia’s biggest banks have agreed to eliminate fees for consumers withdrawing their money at competing banks’ ATMs. “The move comes after a series of scandals in the industry ranging from poor financial advice to failure to pay out on life insurance policies that have highlighted alleged rule-breaking by Australian banks,” the paper reports. Commonwealth Bank of Australia, the country’s largest bank, is under investigation for a variety of scandals, including allegations of money laundering. Scott Morrison, Australia’s treasurer, welcomed the move and said the government is working to create more competition among the country’s banks.
Trust but verify: The paper offers a brief history of Equifax, which traces its roots back to 1899, when two Atlanta grocers started Retail Credit to collect information about the creditworthiness of people in the neighborhood. “Their whole history is about skepticism toward consumers, believing that consumers are trying to get over on the local businesses,” says Josh Lauer, author of a book on the credit bureau business. “They were providing a service, trying to make lending safer.”
“This matter involving our Edgar system concerns me deeply. Rightfully, it will cause this committee and others to increase their focus on whether the commission’s approach to cybersecurity appropriately addresses our cyberrisk profile.” — Securities and Exchange Commission Chairman Jay Clayton’s prepared testimony before the Senate Banking Committee on Tuesday.