Receiving Wide Coverage ...
Now, prove it: The Supreme Court ruled 5-3 that Miami has legal standing to sue Bank of America and Wells Fargo for alleged predatory lending under the Fair Housing Act. However, "the court declined to decide whether the city had asserted a direct enough connection between the banks' actions and the harm it claimed," the New York Times noted. The case was sent back to the federal appeals court in Atlanta.
Miami sued the two banks claiming their alleged discriminatory mortgage lending practices caused minority home buyers to default on their mortgages, which in turn caused financial harm to the city. The court rejected the banks' argument the city had no legal standing to sue them. Going forward, however, Miami "will have to establish that the banks caused direct harm to the city — not attenuated, downstream effects — a high standard that could prove challenging to meet," the Wall Street Journal said.
Cleaning house: AXA, the French insurance giant that owns AllianceBernstein, abruptly fired the company's long-time chief executive Peter Kraus and all six of its independent board members.
Just thinking: President Trump said he is "looking at" bringing back the Glass-Steagall Act's restrictions separating retail from investment banking. "There's some people that want to go back to the old system, right? So we're going to look at that," he said. Bank stocks were little changed after the comments.
Ripple effect: China's latest attempt to restrain its overleveraged financial system threatens to hamper the country's economy just as credit growth is already starting to slow down. "Investors outside the country don't seem to care, but they should," the Journal says. "China probably isn't going to create another global financial scare as it did in 2015 and at the start of 2016, but the effects will still ripple around the world."
Wall Street Journal
The replacements: The Trump administration is preparing to
We can do that?: Goldman Sachs is trying to make money the old-fashioned way: by lending it out. The company's old standbys — investment banking, trading and managing money for the wealthy – "just aren't providing the kind of growth it wants," the paper reports. "So Goldman is expanding its reach with a prosaic strategy it once avoided.
Family matter: Barclays CEO Jes Staley is wading into a "
Proxy fight: A pair of proxy advisory firms are squaring off against each other in a Canadian bank's bid to buy a small Chicago bank. Institutional Shareholder Services told PrivateBancorp shareholders to vote against the bank's proposed sale to Canadian Imperial Bank of Commerce. But Glass Lewis & Co. recommends a "yes" vote, saying CIBC's offer is "reasonably sufficient."
"The split recommendations are the
Northern run: Also up north, Home Capital Group, Canada's largest subprime mortgage lender, said it has tapped into an emergency credit line as customers withdraw funds following allegations, which the lender denies, that it misled investors about
Financial Times
Know your lender: It turns out the "Bank of Mum and Dad" should be taken seriously as a competitor, at least in the U.K. According to a study by insurance company Legal & General, loans and gifts from family and friends help fund
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