Receiving Wide Coverage…
Credit-quality alert: How are the consumer credit markets doing? To quote the Magic 8-Ball: "outlook not so good."
Synchrony Financial, the largest U.S. issuer of private-label credit cards, said Tuesday that its chargeoff rate is likely to rise by 20 to 30 basis points over the next year, as some borrowers struggle to get on top of overdue payments. Wall Street Journal, Financial Times
The credit card industry has benefitted from very low delinquency rates in recent years, but that streak might now be ending. Earlier this month, Jamie Dimon, head of JPMorgan Chase, described the auto lending business as "a little stretched."
The bad news doesn't bode well for the rest of consumer finance, either. As a Wall Street Journal columnist concluded, "there is never just one cockroach."
Into the dark: Securities and Exchange Commission staff have recommended approval of dark pool IEX to become an official stock exchange, though the decision ultimately rests with the agency's commissioners. IEX would use a "speed bump" to protect investors from high-frequency traders – the concept was featured in Michael Lewis' 2014 book "Flash Boys." Financial Times, Wall Street Journal
Wall Street Journal
Age is just a number: MetLife has waived an internal policy that would have required Steven Kandarian to step down as chief executive when he turns 65 next March.
Employment woes: Another 8,000 jobs could be on the line in Bank of America's retail division, as the company continues to embrace digital banking and scale back on branches. Most of the cuts are likely to come through attrition rather than layoffs.
Battle lines drawn: A top official at Wells Fargo is hyping ClearXchange, a payments transfer system backed by the big banks, over competitors from the startup community.
New York Times
Hands off: The Commodity Futures Trading Commission is "overreaching in its quest" to prevent spoofing and other forms of market manipulation.
Classic Hoenig: Thomas Hoenig, the vice chairman of the Federal Deposit Insurance Corp., beats the drum for tougher capital requirements in an interview with TheStreet.com.