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 true: The immediate cost of Apple Pay is expected to be assumed by the banks.) Anderson's statement implies that Apple is willing to work with banks, whereas other disruptors not so much. In the same article, the Times points a finger directly at retailers in that regard, whose Merchant Customer Exchange partnership looks to "replace the card networks altogether." The Washington Post takes a closer look at that aspect of the Apple Pay narrative by addressing the fact that Wal-Mart has snubbed the Apple Pay party and is throwing its weight behind the mobile payments system called CurrentC. A few other names you've heard of are also in support of CurrentC: Target, Southwest Airlines, 7-Eleven, Shell gas stations and clothing peddler The Gap. "There will be a dominant player to come out of CurrentC versus Apple," consultant Michael Archer told the Post. "I'm not willing to handicap either one right now."
Wall Street Journal
Citigroup, JPMorgan Chase and others are coming under scrutiny from the Treasury Department for shifting some trading operations overseas to avoid new U.S. rules on swaps. The banks have done this by revoking their policy of guaranteeing some swaps issued by foreign affiliates, thus cutting ties to the U.S. parent.
Some American expats are getting caught up in the aggressive crackdown by U.S. officials on money laundering. Banks, including Wells Fargo and Citigroup, have rejected American customers' applications for accounts simply because they live overseas, the paper reports. Even the wealthy and those employed by multinational companies are not immune.
Jamie Dimon has worked in JPMorgan Chase offices at least a couple of hours nearly every weekday during his eight-week period of cancer treatments. Those who have seen Dimon say "he hasn't lost hair and looks a little slimmer, and at times he has seemed more tired and talked with a raspier voice." Dimon also took Warren Buffett's advice to watch episodes of his favorite show, "Breaking Bad," during his treatment sessions.
The Federal Housing Finance Agency's plan to make it easier for low-income borrowers to take out mortgages and refinance loans could backfire, argues John Carney in a "Heard on the Street" column. The FHFA wants to kick start banks and mortgage lenders into making more loans to low-income borrowers by increasing demand from Fannie Mae and Freddie Mac. But it might not work, because banks don't want to make loans that they wouldn't keep on their own balance sheets, as it would open them up to liability for faulty underwriting.
New York Times
When retailer Conn's, which lends to its customers, last week reported a higher-than-expected default rate on subprime loans, it shed light on the growing concern about the reemergence of subprime lending. So-called deep subprime loans, those made to borrowers with credit scores below 550, have grown faster than any category within the segment.
Democrats and Republicans both grilled the new head of the Small Business Administration, Maria Contreras-Sweet, during a Thursday hearing on Capitol Hill, over items like unauthorized pilot programs, scant contracting oversight and slow disaster response.