Risk management

Merchants that accept bitcoin and other cryptocurrencies need an increased focus on the ways that fraudsters might try to exploit them.

Freddie Mac and Arch Capital are testing a new form of risk-sharing deal to boost investor appetite for low down payment mortgages. But the pilot is raising concerns about "charter creep" because it dictates private mortgage insurance decisions typically made by lenders.

Banks and payment companies have long been wary of the political and reputational risks of supporting gun sellers. But gun sellers know their customers better than most other merchant categories.

Senior leaders at the Federal Reserve, the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau said they want examiners to be more understanding of the budding partnerships forming between banks and fintech firms.

Bankers should be careful in their push to deregulate, as efforts to roll back some crisis-era rules will likely add new risks to the financial system.

Wells Fargo, which has been told by the Fed that it needs to improve its governance and controls, on Thursday received an important thumbs-up from its outside auditor and also named the four senior directors who will retire next month.

Sen. Elizabeth Warren, D-Mass., and two colleagues are seeking more information from securities regulators about whether Wall Street firms are covering up signs of sexual harassment.

Kathleen Henry and Steven Antonakes have been named to the bank's management committee.

Blue Lion Capital, which is upset with the Seattle company's growth strategy, also wants to replace two of the company's directors.

As financial services companies cool on gun sales, alternative currencies may step in to pick up the slack.

Freddie Mac posted a fourth-quarter net loss of $3.3 billion and will request $312 million from the Treasury after recent tax reform legislation forced it to write down the value of deferred tax assets.

Amid all the complaining about increased regulation, and the need to maintain higher capital levels, bankers are failing to realize that there is also a significant opportunity: Those that develop operational excellence at deploying capital can set themselves apart from peers.

Sen. Elizabeth Warren, D-Mass., asked Wells Fargo's chief executive to address recent reports that the bank's efforts to compensate customers for unnecessary fees is falling short.

With some 3.5 million ATMs all needing to be converted Windows 10 at the same time, some credit unions are being proactive now to avoid the mad rush.

The Fed determined that Jacob Goldstein, who was also president of NBRS Financial Bank, improperly signed off on loans without telling the board that he would benefit from them. The bank failed in 2014.

The one-notch downgrade, announced Wednesday, came in response to the Fed's unprecedented decision to halt asset growth at the embattled bank.

Wells has tapped Sarah Dahlgren for a newly created position overseeing regulatory relations as the megabank tries try to remove the cloud of its phony-accounts scandal.

Data analytics provider RELX Group has agreed to acquire ThreatMetrix and its digital risk-assessment network for $816.5 million (580 million pounds) in cash.

Some bankers spread the religion of this year's feel-good World Economic Forum, but others were more circumspect. The list of potential threats remains lengthy — including trade wars and the bursting of the bitcoin bubble — and all pose risks to banks and the economy.

Financial firms have mostly shrugged off the government's budget woes, but Washington's gridlock might pose a bigger risk than they think.