Breaking News This Morning ...
Silver lining: Credit Suisse posted a larger-than-expected fourth-quarter loss of 2.3 billion Swiss francs ($2.3 billion) and a full-year 2016 loss of 2.4 billion francs, its second consecutive annual loss. It also said it planned to eliminate more than 5,500 jobs by the end of this year. Still, the bank said it is optimistic about 2017 following a strong start. Wall Street Journal, Financial Times, New York Times
Receiving Wide Coverage ...
Close call: With just one Democrat voting in his favor, Steven Mnuchin was confirmed as the next Treasury secretary by the full Senate Monday night by a 53-47 vote. Sen. Joe Manchin of West Virginia was the only Democrat to cross the aisle and vote for the former Goldman Sachs banker. The vote was the closest ever for a Treasury secretary nominee; in 2009, Timothy Geithner was confirmed in a 60-34 vote. Wall Street Journal, New York Times, Washington Post, American Banker
Wall Street Journal
Get real: Danielle DiMartino Booth says the Federal Reserve "has become an insulated institution that fails to understand how its model-based policies affect the real economy," according to the paper. The Fed, she says, relies too much on theory and not enough on reality. In her book, "Fed Up," she notes the Dallas Fed, where she worked for a decade had a goat farmer and the CEO of a local fast-food chain on its board. "It's that kind of real-world perspective that could help the bank shift its policies and focuses," the Journal said.
Homebound: Pretty much everyone knows by now how difficult many millennials have it. Bogged down by student loans and a weak job market, many can't move out of their parents' homes because they can't afford to pay rent, let alone qualify for a mortgage. As a result, millennials are less mobile than the previous four generations were at the same age, according to a Pew Research Center study using recently released U.S. Census Bureau data.
In 2016, just 20% of 25-to-35 year olds changed addresses the previous year, Pew said. That compares to 26% of members of Generation X back in 2000 and 27% of late baby boomers in 1990. Only 6% of millennials who moved last year said their primary reason was to own a home, less than half of the 14% Gen Xers who moved into homes in 2000.
Not so bad: Is Dodd-Frank really as bad as the Trump administration and some Republicans in Congress paint it? "The headline data do not suggest that loans are too hard to obtain," the FT claims. "Figures from the Federal Deposit Insurance Corporation show that gross loans across the U.S.'s commercial banks have grown pretty steadily for at least three years, spread across all categories except home-equity lines of credit and loans to other banks." It does note, however, that "certain segments have been squeezed," notably credit card and personal loans and mortgages.
New York Times
Cardless ATMs: A growing number of banks are starting to enable their customers to access cash from ATM using their cellphones. JPMorgan Chase, the Times reports, has activated this technology on a few hundred machines in four test cities, while 6,000 more ATMs have already been upgraded and are ready to go. Bank of America and Wells Fargo plan to introduce cardless options to all their ATMs by the end of this year. The technology each bank uses varies.
Blockchain when?: Nearly half of the members of a blockchain consortium said they expect the technology to be widely adopted in post-trade settlement processes over the next three to five years, while 21% say it will take at least five years. Nearly a third believe it will be adopted within the next one or two years.
"If you've lost your card or left home without your wallet, chances are you still have your smartphone in your hand." — Jonathan Velline, Wells Fargo's head of ATM and branch banking