Banco Popular de Puerto Rico

Receiving Wide Coverage ...Ho hum: World financial markets mostly shrugged off the results of Italy's constitutional referendum, which went down to defeat on Sunday, although the country's banks and its economy remain in serious trouble as a result. Wall Street Journal, Financial Times, New York Times

Receiving Wide Coverage ...Paying the piper: Wells Fargo CEO Timothy Sloan reiterated that the bank expects to spend tens of millions of dollars on investigations and other regulatory matters in the wake of its phony accounts scandal. "I think that seems reasonable today based on what we know. It's the upper end of our range from an efficiency standpoint," he said at a Goldman Sachs financial services conference Tuesday. He also said the scandal could affect the bank's retail banking results this quarter as well as its submission next year for capital returns under the Federal Reserve's stress test and capital-planning process.

Receiving Wide Coverage ...Big brother: Credit Karma and Mint are ready to offer automated tax preparation services as part of new features "that will make them feel more like robotic financial advisers, tapping customers on the shoulder when they could make better financial decisions," as the New York Times puts it. Credit Karma said Wednesday it acquired AFJC Corp., an online tax preparation and filing company, and would begin offering its services, called Credit Karma Tax, in time for the 2017 filing season, the Wall Street Journal reported.

Receiving Wide Coverage ...Heading out: Andrew J. Ceresney, director of the SEC's enforcement division, said he will resign at the end of the year after three years at the agency. His move follows that of his boss, SEC chairwoman, Mary Jo White, who last month announced her intention to leave.

Receiving Wide Coverage ...Positioning: Gary Cohn's likely departure from Goldman Sachs to join the Trump administration as director of the National Economic Council "sets off a new round of C-suite jockeying at Goldman, where the decade-long tenure of Chief Executive Lloyd Blankfein has created a younger generation of executives eager to advance," the Wall Street Journal reports. Cohn's dual roles of president and chief operating officer are likely be split among two executives, possibly investment-banking co-chief David Solomon and CFO Harvey Schwartz.

Receiving Wide Coverage ...Suspended: Prudential Financial said it suspended sales of its MyTerm life insurance policies through Wells Fargo following allegations that Wells employees wrote policies without customers' permission and withdrew money from their bank accounts to pay the premiums. Many of the victims did not speak English, according to a suit filed by three former Prudential employees, who claim the company tried to hush up the scandal. Prudential said Monday it would reimburse any customers who said they were charged for policies they did not ask for. California and New Jersey insurance investigators are looking into the matter. Wall Street Journal, Financial Times, New York Times, American Banker

Receiving Wide Coverage ...Nixed: U.S. banking regulators rejected Wells Fargo's revised living will as inadequate and imposed new sanctions on the bank: preventing it from setting up overseas entities and buying nonbank companies. Wells was one of five big banks – the others were JPMorgan Chase, Bank of America, Bank of New York Mellon and State Street – whose living will plans were rejected last April; Wells was the only one whose revision did not pass muster. The bank has until March 31 to submit a third plan; if that one is also rejected, the bank could be hit with more sanctions, including higher capital requirements. "This the first time that regulators have imposed penalties since the country's biggest banks were required to submit 'living wills' starting in 2012," the Wall Street Journal notes. Wall Street Journal, Financial Times, New York Times, Washington Post, American Banker

Wells Fargo to introduce new pay plan; banks borrowing increases; banks transforming brokers

Receiving Wide Coverage ...Confirmed: As expected, Goldman Sachs named David Solomon and Harvey Schwartz as presidents and co-COOs to replace Gary Cohn, who is leaving to join the Trump administration. The naming of two co-presidents to replace Cohn "raises questions about the structure and strategic direction of the company," the Financial Times says, and suggests "a return to a traditional structure that pits an executive from the trading side of the business against one from investment banking." While the New York Times suggests it's "a new generation."

Wall Street JournalIncentives dropped: Wells Fargo said it will stop offering bonuses to its securities brokers for urging customers to take out loans, including mortgages, securities-backed loans and other consumer lines of credit. "Such bonuses usually come in the form of deferred compensation and can add several thousand dollars to a broker's annual pay," the Journal said. Erik Karanik, a managing director at Wells Fargo Advisors, said the move brings the brokerage unit in line with the rest of the bank, which has changed its sales incentives in the wake of the phony accounts scandal.