Machine learning: Capital One is launching a formal study to see how machine learning can help customers manage their finances. "During the coming months and years, Capital One's machine learning capabilities could give customers greater insights into budgeting," the paper reported. "For example, advanced machine-learning algorithms could make smart predictions about upcoming bills such as rent, and irregular expenses such as those tied to seasonal weather changes, to help customers manage their spending." The credit card company has created a new Machine Learning Center of Excellence and is recruiting people with artificial intelligence experience, the paper said.
Brighter than gold: The price of bitcoin rose to a record high on Thursday, but the surge was notable for another reason: it reached parity with the price of gold for the first time. The digital currency hit $1,252 on Thursday, $10 above its all-time high of $1,242. At the same time, the price of bullion fell 0.7% to $1,241. "While it's debatable whether or not one bitcoin is the equivalent of one ounce of gold," the Journal said, it is notable because bitcoin backers "are promoting it as a 21st-century version of gold."
Ben Carson, retired neurosurgeon and 2016 Republican presidential candidate, listens to a question during a Bloomberg Politics interview in Des Moines, Iowa, U.S., on Wednesday, Jan. 27, 2016. Carson has made his Christian faith and the kind of issues that motivate faith-based voters a central part of his pitches to Iowa's heavily evangelical Republican caucus-goers but in the state that will kick off voting for a presidential nomination with its Feb. 1 caucuses, hes being bested by Donald Trump. Photographer: Andrew Harrer/Bloomberg *** Local Caption *** Ben Carson
Andrew Harrer/Bloomberg
The doctor is in: By a vote of 58-to-41, Ben Carson, the retired neurosurgeon, was confirmed by the Senate as Housing and Urban Development secretary. While many questioned Carson's qualifications for the role, he said at the hearing, "I actually believe that there is a tremendous nexus, a great intersection, because good health has a lot to do with a good environment."
Snapchat?: In what the paper describes as one of the most successful debuts in the industry, Goldman Sachs has taken in $3 billion in its exchange-traded funds in just 18 months. But "few have noticed, illustrating the conundrum for banks that have come late to the $2.7 trillion U.S. ETF market," the paper said. "While banks have decided the sector's significant growth potential is too good to miss, ETFs remain a tiny niche relative to the core businesses of investing and lending at banks" such as Goldman and JPMorgan Chase.
Financial Times
More, please: Wells Fargo's board is facing "an investor rebellion" as several of its largest institutional shareholder are pressuring the bank to do more in the wake of the phony accounts scandal. Several investors told the paper "the board had been too slow to respond to the scandal that erupted six months ago, and that questions remained over whether longstanding directors had failed in their oversight duties." While John Stumpf lost his job as chairman and CEO and two board members were replaced, "more must be done," New York City comptroller Scott Stringer said.
Cause for worry?: "Management turmoil and legal run-ins" may be the least of Bridgewater Associates' problems, the FT reports. Investors in the world's largest hedge fund are also "nervous about Bridgewater's core investing philosophy," which is built heavily on the 35-year-long bull market in bonds that may be coming to an end as interest rates rise.
Most big banks saw modest reductions in their requirements following this year's stress tests. The results come as the Fed prepares to smooth year-to-year swings with a new averaging rule.
The D.C. District Court held a hearing this morning and defendants filed briefs in a case to determine whether Federal Reserve Gov. Lisa Cook will remain on the Federal Reserve Board after her ostensible firing by President Trump earlier this week. No ruling was issued, but one is expected before the FOMC votes in mid-September.
Buy now/pay later lender Affirm hit profitability goals for its fiscal year 2025 and set aggressive guidance for fiscal 2026 ahead of Wall Street's estimates. Its stock soared more than 10% Friday.
The proposed Berkshire Hills-Brookline merger is expected to finalize on Sept. 1; Flagstar Financial has scheduled a special shareholders' meeting to simplify the bank's regulatory structure; former Credit Suisse executives agreed to settle a suit filed by shareholders claiming they failed to maintain adequate risk management; and more in this week's banking news roundup.
Housing regulator Bill Pulte lodged more fraud allegations against Fed Governor Lisa Cook as she filed a temporary restraining order regarding attempts to remove her.
Online lenders are urging the Office of the Comptroller of the Currency to force banks to disclose all account closures to the agency, following an executive order earlier this month.
