Banco Popular de Puerto Rico

Wall Street JournalRules for payment apps: Mobile payment apps like PayPal's Venmo and Alphabet's Google Wallet will be covered by the Consumer Financial Protection Bureau's new rules covering prepaid debit cards. While prepaid cards and mobile payment apps serve mostly different demographics and do different things, "the CFPB views the products as requiring similar types of oversight to ensure customers' money is safe," the Wall Street Journal reported. The payment app providers had objected to their inclusion after the rule was first proposed two years ago. Under the rules, which take effect in a year, prepaid card and mobile app providers would be required to more fully disclose their fees and provide the same liability protection as credit card issuers. The rule won't cover digital wallets that simply store payment credentials, such as Apple Pay. The CFPB has already received more than 500,000 comments on the proposal so far.

Editor's note: Morning Scan will not publish on Monday, Oct. 10 in observance of Columbus Day. We'll be back on Tuesday, Oct. 11.

Receiving Wide Coverage ...Wells names senior team: Wells Fargo announced several management appointments Monday even as it continues to try to manage the fallout from its phony accounts scandal. Avid Modjtabai, who previously led consumer lending at the bank, has been named head of a new payments, digital and innovation group. Franklin Codel was named to replace her as head of consumer lending. The two managers were named by President and COO Timothy J. Sloan, who is expected to replace embattled CEC John Stumpf in the next two years. So far, Sloan has managed to avoid being tainted by the scandal. The bank also named several people to its operating committee. The moves are seen as consolidating Sloan's position as CEO in waiting. Wall Street Journal, Financial Times, New York Times, American Banker

Receiving Wide Coverage ...CFPB loses appeal: A federal appeals court ruled Tuesday that the CFPB's structure, in which an unusual amount of power and autonomy is invested in a single director, is unconstitutional and ordered its powers be curbed. "If it stands, the decision from the U.S. Court of Appeals for the District of Columbia would reduce the agency's independence, empowering the White House to supervise the agency and remove its director, in contrast to the current arrangement where the director's five-year term is intended to outlast a president's," the Wall Street Journal commented. The three-member panel also criticized the enforcement action that led to the court ruling, in which PHH Mortgage was ordered to pay $109 million for allegedly accepting kickbacks from mortgage insurers. The court ordered the agency to reconsider the penalties.

Receiving Wide Coverage ...Stumpf leaves: Wells Fargo chairman and CEO John Stumpf announced Wednesday he is retiring immediately, as was widely expected following the bank's phony accounts scandal. "The toppling of Mr. Stumpf, 63 years old and just shy of his 10th year as CEO, marks a stunning comedown for a firm that largely passed through the financial crisis unscathed and which was seen as a reliable Main Street lender," the Wall Street Journal commented.

Breaking News This Morning ...Earnings season opens: Analysts are expecting a "downbeat" third quarter from U.S. banks, which began reporting earnings results on Friday. The combined profits for the big six banks are expected to fall about 9% to $20.1 billion compared to the same period last year, the Financial Times says. One reason is a 0.1% decline in business lending. "Although small, the contraction from the prior quarter is the first such drop in six years," says the Wall Street Journal, which nonetheless expects overall results "to be solid if not exciting."

Breaking News This MorningB of A beats: Bank of America reported earnings of $4.96 billion, or 41 cents a share, for the third quarter, compared to $4.62 billion, or 38 cents a share, in the same period of 2015. That beat analyst estimates of 34 cents a share. Revenue rose about 3% to $21.6 billion, beating Street forecasts of $20.97 billion.

Breaking News This Morning ...Goldman's earnings soar: Goldman Sachs's third quarter earnings jumped 47% versus the year-ago period as trading revenue rose 17%. The bank earned $2.09 billion, or $4.88 a share, easily beating analysts' estimates of $3.82 a share. A year earlier it earned $1.43 billion, or $2.90 a share. Revenue rose 19% to $8.17 billion from $6.86 billion, well above Street forecasts of $7.42 billion. Return on equity climbed to 11.2%, up from 7% in the year-earlier quarter and the first time the ratio exceeded 10% since early 2015. Wall Street Journal, Financial Times

Breaking News This Morning ...Morgan Stanley beats estimates: Morgan Stanley reported a third quarter profit of $1.6 billion, or 81 cents a share, up 57% from $1.02 billion, or 48 cents a share, in the year ago period. That easily beat the median Street forecast of 63 cents. Revenue rose 15% to $8.91 billion from $7.77 billion, also beating analysts' estimates of $8.17 billion. As with its peers on Wall Street, which reported earlier, the bank's results were helped by a rebound in securities trading. Return on equity jumped to 8.7%, up from 5.6% a year ago. Wall Street Journal, Financial Times

Receiving Wide Coverage ...More trouble for Wells: The California Department of Justice has launched a criminal investigation into Wells Fargo to determine if bank employees engaged in criminal identity theft and false impersonation to open accounts for customers without their permission. "There is probable cause to believe that employees of Wells Fargo Bank unlawfully accessed the bank's computer system to obtain the PII [personally identifiable information] of customers," the state's affidavit said. "The bank's employees then used the unlawfully obtained customers' PII to commit false impersonation and identity theft by opening unauthorized accounts, credit cards, and various other products that resulted in the accumulation of fees and charges for Wells Fargo."