TD's glitch, banks' role in gun debate and Russian trolls: Top stories of the week

February 23, 2018 2:58 PM

TD Bank's disastrous update to its mobile and online banking systems earned the most attention from readers this week, along with stories on whether banks should stop processing payments for gun sales and a look at AML requirements in light of Russian election tampering.

Despite careful planning, TD Bank fumbles online banking upgrade

Scores of customers have been unable to use digital channels to access accounts for more than a week, and many have taken to social media to voice their displeasure with TD's response to the outage. The lesson for other banks: Test new platforms, and test them again, before making them live.

(Full story here.)

Signage in front of the Fannie Mae and Freddie Mac headquarters.

Don't reinvent the wheel on housing finance: Restore Fannie and Freddie

As the debate over housing reform heats up, policymakers should give careful consideration to a plan that recapitalizes the government-sponsored enterprises.

(Full story here.)

Pneumatic weapon hangs on the wall in military shop

Iakov Filimonov (JackF)/JackF - stock.adobe.com

Guns pose a political risk for banks

The New York Times' Andrew Ross Sorkin wants banks and credit card companies to effectively ban assault gun sales if Congress won't. It's a dangerous idea. Here's why.

(Full story here.)

Debit card provided by Greenlight Financial Technology

Greenlight Card (PRNewsfoto/Greenlight Financial Technology)

Hand-out/Greenlight Financial Technology

Here's another way Amazon and banks are collaborating

The internet giant, SunTrust, Ally and other backers have invested $16 million in a new funding round for Greenlight Financial Technology, further blurring the lines between banks and tech companies.

(Full story here.)

Rod Rosenstein, deputy attorney general, speaks during a news conference at the Department of Justice in Washington, D.C., U.S., on Friday, Feb. 16, 2018. Rosenstein briefed the media about U.S. Special Counsel Robert Mueller announcing an indictment of 13 Russian nationals and three Russian entities, accusing them of interfering in the 2016 presidential election and operating fake social media accounts. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

Did banks' KYC controls fail in Russian efforts to swing election?

Foreign operatives' alleged use of fraudulent financial accounts to try to influence the U.S. political system shows again how difficult it is for banks to truly know their customers.

(Full story here.)

Hacking smartphone user database. Isometric vector illustration.

user

Are banks doing enough to protect Zelle users?

In Zelle's national advertising campaign, the bank-run P-to-P network spotlights consumers paying a personal trainer, a babysitter and a neighbor. It sets an expectation that Zelle can be used like a credit card, and scammers have figured out how to exploit this trust.

(Full story here.)

Requirements set for data vaults under the Sheltered Harbor Initiative

Banks' underground data vault is evolving — will it use blockchain next?

Banks scrapped a plan to create a shared data bunker for customer data in favor of a backup buddy system. Some argue a move to blockchain should be next.

(Full story here.)

Senator Sherrod Brown, a Democrat from Ohio, questions Steven Mnuchin, Treasury secretary nominee for U.S. President-elect Donald Trump, during a Senate Finance Committee confirmation hearing in Washington, D.C., U.S., on Thursday, Jan. 19, 2017. Mnuchin defended his record as an owner of a mortgage lender that was accused of unfair loan and foreclosure practices during the financial crisis. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

Dems demand fair-lending docs from CFPB's Mulvaney

Democratic lawmakers are objecting to acting CFPB Director Mick Mulvaney's decision to strip the fair-lending office of enforcement powers.

(Full story here.)

Marijuana clone plants grow at the Smokey Point Productions facility in Arlington, Washington, U.S., on Thursday, Jan. 12, 2017. The increasing supply of legal marijuana is turning into a major buzz kill for growers as prices plunge -- and an opportunity for companies that can help cut production costs. Photographer: David Ryder/Bloomberg

David Ryder/Bloomberg

A solution to California's pot-banking problem: Its own central bank

The effort would help the state support its burgeoning cannabis industry without interference from federal financial regulators.

(Full story here.)

LendingClub agrees to settle shareholder litigation for $125M

The online lender continues to contend with the fallout of a 2016 scandal that led to the ouster of its founder and CEO.

(Full story here.)