Receiving Wide Coverage ... Rethinking Volcker: The Office of the Comptroller of the Currency is starting the process to revamp the Volcker rule on proprietary trading by banks. The OCC is expected to ask for public feedback as early as Wednesday on potential changes to the rule. Wall Street Journal, Financial Times
The move by the OCC "raised investors' hopes that the process of loosening rules on Wall Street will succeed even though other areas of the Trump administration agenda, such as tax reform, are awaiting Congressional action — for which expectations have dimmed," the Financial Times said. Bank stocks rallied, with the S&P 500 financial index rising to 419.54, its highest level since late 2007, and shares of some individual big banks climbing over 1%.
Splitsville: Bitcoin Cash, the bitcoin offshoot, got off to an inauspicious start on its first day of trading on Tuesday. The digital currency traded around $270, about a tenth of the value of original bitcoin, which was worth about $2,750.
"It is unclear how successful the new cryptocurrency will be, or how much activity it will generate," the Wall Street Journal reported. Most digital currency exchanges so far aren't supporting Bitcoin Cash, it said.
Financial Times columnist Izabella Kaminska writes that the split between alternate versions of bitcoin is "a judgment of Solomon moment. Only a decisive win by either side will prevent bitcoin from splitting itself apart."
Financial Times They're b-a-a-ck: Collateralized loan obligations, which have been blamed for causing much of the damage during the financial crisis, are starting to make a comeback, and Frank Partnoy, a professor at the University of San Diego, is concerned that the financial markets are ignoring their potential harm.
"Like its earlier esoteric cousins, a CLO bundles risky low-grade loans into attractive packages and high credit ratings," he writes in an op-ed piece. "Although most of the loans underlying these deals are of 'junk' status, more than half the new debt is rated triple A. Sound familiar?"
Sticking with London: Deutsche Bank signed a lease for a new headquarters in London, "confirming its commitment to the capital despite plans to move some staff to Frankfurt following the U.K.'s vote to leave" the European Union, the FT reports. "The commitment comes despite a warning in April that thousands of Deutsche Bank's U.K. staff may be forced to relocate after Brexit, since the U.K.'s departure from the EU is likely to limit banks' ability to serve European clients from London."
Hangin' with Mr. Cooper: The FT has a profile of Simon Cooper, the man charged with reviving Standard Chartered.
New York Times "Carl E. Reichardt, who as chairman and chief executive of Wells Fargo during the 1980s and ′90s introduced a leaner approach to commercial banking that served as a model for the industry, died on July 13 at his home in Belvedere, Calif., in the San Francisco Bay Area. He was 86."
Quotable "The path is a little clearer for some regulatory relief." — Brant Houston, managing director at CIBC Atlantic Trust Private Wealth Management, about the possibility of revamping the Volcker rule.
The U.S. arm of Spanish banking giant Santander has hired Swati Bhatia to oversee retail banking and its digital transformation efforts. Bhatia joins at "an inflection point" for the company, which aims to be "a digital bank with branches," CEO Tim Wennes said.
Mariya Rosberg is named Americas head of banking and financial services at Marsh McLennan's Oliver Wyman unit; startup ZayZoon raised $15 million in a new funding round; and more in the weekly banking news roundup.
Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
Once a prominent figure spurring financial institutions to engage in cryptocurrency, Bankman-Fried's downslide began with the collapse of the digital asset exchange FTX in late 2022 and hit rock bottom with his sentencing to 25 years in prison.