Banco Popular de Puerto Rico

Receiving Wide Coverage ...Settled: JPMorgan Chase agreed to pay $264 million and admit it violated the Foreign Corrupt Practices Act to resolve charges that it hired relatives of Chinese government officials and managers of state-owned companies to win business in China. But it may only be the first of many banks to do so. Several other U.S. and foreign banks are under investigation for similar practices, including Citigroup, Goldman Sachs, Morgan Stanley, Credit Suisse, HSBC and UBS. "We do not expect this to be the last action resulting from that sweep," said Andrew J. Ceresney, the head of enforcement at the SEC.

Wall Street JournalTighter grip: The OCC Friday unilaterally revoked parts of its recent regulatory consent order with Wells Fargo following the bank's phony accounts scandal. The agency ordered Wells to first seek its approval before changing its business plans, hiring or firing senior executives or revamping its board of directors. The bank was also banned from making golden parachute payments to departing executives without OCC approval.

Receiving Wide Coverage ...More risky: Citigroup, Bank of America and Wells Fargo pose greater systemic risks to the global financial system than they did last year and had their capital requirements increased by regulators. The Financial Stability Board, which ranks the most systemically important financial institutions annually, also said Industrial and Commercial Bank of China presented more risk than last year. But HSBC, Barclays and Morgan Stanley—which sold all or part of their riskier businesses or reduced the size of them—were all deemed to be less systemically risky and had their capital requirements reduced. Globally, 30 banks are considered systemically important and subject to extra capital requirements. Financial Times, New York Times

Holiday notice: Morning Scan will return on Monday, Nov. 28. Have a happy Thanksgiving.

Receiving Wide Coverage ...Racing Stripe: The latest round of private funding for Stripe, a start-up that offers software and services that process payments for businesses, has boosted the value of the company to just under $9.2 billion, nearly double what it was worth less than two years ago and making it the most valuable U.S. fintech company, according to the Wall Street Journal. "Stripe's investors think the company can capitalize on the fast growth of online payments as consumers transfer more of their offline spending to internet retailers and as Stripe continues to expand internationally," the paper said. Stripe plans to use the new funds for acquisitions international expansion.

Receiving Wide Coverage ...Differing views: The Wall Street Journal's editorial page had some strong words about the Consumer Financial Protection Bureau, the "rogue" bureau "which has abused the law and whose structure was recently found unconstitutional. By all rights the bureau should be killed," it says, and "Mr. Trump should dismiss [Director Richard] Cordray on his first day as President." "Reform options short of a death sentence could at least restrain some of the bureau's abuses," it adds, if the GOP isn't successful in killing the agency.

Receiving Wide Coverage ...Wall Street ties: Steven Mnuchin, a former Goldman Sachs executive, is expected to be named Treasury secretary by President-elect Donald Trump. "Mr. Mnuchin's Wall Street pedigree presents a contrast with the populist themes Mr. Trump struck in his campaign, railing against big banks and vowing to close tax loopholes that benefit hedge funds," the Wall Street Journal commented. "Mr. Trump also repeatedly attacked his rivals in the primary and general elections for their Wall Street ties, especially those connected to Goldman Sachs." Mnuchin, who also made millions as a Hollywood movie producer, was Trump's campaign finance chairman. Wall Street Journal, Financial Times, New York Times, Washington Post, American Banker

Receiving Wide Coverage ...Mnuchin speaks: Steven Mnuchin discussed his views on regulatory and tax policies Wednesday after being named President-elect Trump's designated Treasury secretary. Speaking on CNBC, Mnuchin said he would focus on rolling back parts of the Dodd-Frank financial reform law. "The number one problem with Dodd-Frank is that it's way too complicated and cuts back lending," he said, adding, stripping back part of the law "will be the number one priority on the regulatory side." He used similar words to describe the Volcker rule (see below).

Receiving Wide Coverage ...It's official: Wells Fargo has formally separated the roles of CEO and chairman under pressure from some large investors, including several state treasurers, according to the Financial Times. John Stumpf, the bank's former chairman and CEO, resigned in October following the bank's phony accounts scandal and was replaced by Timothy Sloan as CEO and Stephen Sanger as chairman. But on Thursday Wells went further, amending its bylaws to mandate the split. "Wells' decision is noteworthy in a sector that has largely resisted such demands, and some corporate governance experts said it should encourage other banks to do the same," the FT said. The heads of JPMorgan Chase, Bank of America and Goldman Sachs all hold both positions.

Receiving Wide Coverage ...Fintech Boost: The Office of the Comptroller of the Currency announced a proposal Friday that would grant special limited-purpose banking licenses to financial technology firms that would give them "greater freedom to operate across the country without seeking state-by-state permission or joining with brick-and-mortar banks," as the Wall Street Journal described it. "The move could open the door to more competition between the old and new financial firms, and provide a bigger opening for some large tech companies to consider new ways to offer digital payments or other services."