Compliance

CRA

Should consumer protection failures play a bigger role in CRA grades?

USAA Federal Savings Bank’s downgrade shows how customer mistreatment stemming from flaws in internal controls can hurt Community Reinvestment Act scores. Some want consumer compliance to carry more weight in the CRA calculus.

By Brendan Pedersen

October 21

Cryptocurrencies

How PayPal’s approach to crypto breaks with precedent

PayPal isn’t the first company to open its platform to cryptocurrencies, but its technique is more hands-on than most payment providers.

By Kate Fitzgerald

October 21

Community banking

Ex-Trump adviser Cohn predicts bleak future for community banks

Gary Cohn, former head of the Trump administration’s National Economic Council and onetime top executive at Goldman Sachs, says technological changes will continue to make it harder for smaller financial institutions to compete and force many to be sold.

By Hannah Lang

October 19

“I just don't think you can really be a one- or two- or three-branch regional bank in this world with the legal component, regulatory and digital needs that you have today,” said former National Economic Council Director Gary Cohn.

Enforcement actions

USAA's regulatory troubles now include OCC fine, CRA downgrade

The $85 million penalty and the bank's "needs to improve" rating on its Community Reinvestment Act exam were tied to alleged violations of the Military Lending Act and Servicemembers Civil Relief Act.

By Joe Adler

October 14

The OCC fine also comes weeks after the regulator disclosed on Oct. 1 that USAA Federal had received a “needs to improve” rating on its most recent Community Reinvestment Act evaluation.

Expense management

Wells Fargo faces growing pressure to slash costs

CEO Charlie Scharf disappointed investors by failing to provide either a detailed road map for long-term expense reductions or say when he might release such a plan.

By Kevin Wack

October 14

BankThink The high cost of giving banks too much slack

Examiners are skilled at spotting trouble but often do too little to correct it, as the latest revelations about Citi once again show. Prompt supervisory intervention is essential to protecting the integrity of the financial system.

October 14

Karen Petrou

Managing Partner

Federal Financial Analytics

Enforcement

Citi execs silent on cost of risk overhaul

CEO Michael Corbat and CFO Mark Mason dodged questions from analysts about how much time and money Citigroup expects to spend to address recent enforcement actions.

By Allissa Kline

October 13

CFPB

CFPB reverses course on marketing services agreements

The agency had raised concerns in the Obama administration about kickbacks in the marketing pacts between mortgage lenders and other providers, but the agency's recent guidance says the deals are legally viable.

By Brad Finkelstein

October 9

In a frequently asked questions post, the CFPB stated that marketing services agreements, or MSAs, do not violate Section 8 of the Real Estate Settlement Procedures Act.

Compliance

Citi hit with pair of enforcement actions, fined $400M

The company's mistaken payment to Revlon creditors and other lapses are said to have contributed to Citi's recent leadership shake-up. On Wednesday, the OCC and Fed ordered the company to fix its risk management problems.

By Hannah Lang

October 7

Paycheck Protection Program

Square's Jackie Reses, who led ILC bid and small-biz lending, steps down

Longtime finance entrepreneur Jackie Reses, who led Square Capital for the last five years, is leaving the company at the end of the month. Square has not yet named a successor.

By Kate Fitzgerald

October 5