Editor's note: Morning Scan will not publish on Monday, Sept. 1 in observance of the Labor Day holiday. We'll be back on Tuesday, Sept. 2.
Receiving Wide Coverage ...
Was JPMorgan Chase the Only Victim? Seven large banks said Thursday that they had no indication that their systems had been breached in the latest cyber attack on financial institutions, the Wall Street Journal and Financial Times both reported. Bank of America, Wells Fargo, U.S. Bancorp, PNC Financial Services Group, Bank of New York Mellon, State Street and SunTrust Banks all said they have not detected signs of a breach. The FBI and other agencies are investigating possible Russian involvement in the attack, which may have been conducted by breaking into the personal computer of an employee working from home. Finally, the Washington Post asks a question that's important to me and you, but apparently not so much to banks: why are customers usually the last to know if their personal information has been stolen in a cyber attack?
Lending Up: Banks reported steady loan growth in all categories, according to the FDIC's Quarterly Banking Profile. Centennial Bank reported an increase in agricultural loans, thanks to rainy weather. Bank of the West is seeing an uptick in credit cards and auto loans.
Wall Street Journal
Is LendingClub's business model too similar to the "originate-to-distribute synthetic securitization" model that led up to the financial crisis? The Journal's "Heard on the Street" column looks at LendingClub's business premise as the loan matchmaker gets ready for an IPO.
The failure of Hypo Alpe-Adria-Bank has cost the governments of Austria and Germany about $12 billion, as the nationalized bank's collapse is one of Europe's biggest financial scandals.
Apple's got a new tool in the quest to develop the dominant digital wallet. The iPhone maker partnered with Dutch chip-maker NXP to add secure, short-range wireless technology in the upcoming iPhone 6. The so-called "near-field communications" chips will let an iPhone connect wirelessly with payment terminals. Smartphone payments haven't really taken off, despite being around for eight years. But the paper points out a staggering statistic that shows Apple could break the market wide open: Apple, via its iTunes and App Store, holds credit card details for about 800 million customers. That's a good thing for Apple, but is that a good thing for the rest of us?
New York Times
Barclays will provide $275 million in financing to the city of Detroit's bankruptcy recovery plan, as the sole underwriter of the city's bond issuance. Part of the proceeds will be used to retire a $120 million loan that Barclays made to Detroit. Comerica Bank is serving as the indenture trustee for income tax revenue generated from people who work in Detroit.