Receiving Wide Coverage ...
Bitcoin plunges after Hong Kong hack. Bitcoin plunged 20% yesterday after Bitfinex, an exchange based in Hong Kong, said it had been hacked and funds were stolen. Nearly 120,000 bitcoins were stolen. Bitfinex, one of the largest exchanges for the digital currency, froze all customer accounts as it investigates the breach. Financial Times, New York Times
Goldman fined by the Fed. The Federal Reserve fined Goldman Sachs $36.3 million for a 2014 incident in which one of its former junior executives took confidential information from the Federal Reserve Bank of New York.
The New York Times called the move by the Fed an "awkward" and "unusual" one, since the leak originated at the New York Fed by one of its own employees. The Goldman banker was a former New York Fed employee. And Goldman, not the New York Fed, discovered the leak.
Wall Street Journal
A new headache for mortgage lenders? It's not just homeowners who are suing banks for their alleged role in the housing bust. A growing number of cities are getting into the act.
The city of Miami is suing Bank of America and Wells Fargo, charging that the banks' alleged predatory lending practices caused widespread declines in property values and tax revenue plus increased expenses for police and other city services as a result of mass foreclosures.
The suit is being brought by Joel Liberson, who has filed similar lawsuits on behalf of Los Angeles, Oakland and Miami Gardens, FL.
B of A and Wells have challenged whether the city has the right to sue; the Supreme Court agreed in June to hear the case. A decision is due in about a year. A decision in Miami's favor could open the door to a lot more lawsuits.
Barclays fined by Finra. The U.K. bank was fined $1.3 million by the U.S. securities industry watchdog for "systemic" reporting violations.
We know what's best for you. In her second column on her visit to the CFPB, Michelle Singletary argues that proposed new agency rules on payday lending, customer arbitration and debt collection practices may have the effect of limiting access to credit for many people, but, she says, "that's a good thing."
"Some people need protection from bad financial practices and, frankly, their own bad decisions," she writes.