Legal issues and news

In this month's roundup of top banking news, how the widespread CrowdStrike outage affected banks of all sizes, JPMorgan Chase's new tech bet for combating rising fraud, what Project 2025 could mean for bankers and more.

The lender denied its software uses artificial intelligence in fighting a 'digital redlining' case.

Instances of check fraud have ballooned in recent years, plaguing banks, and they don't seem to be slowing down. Probably the best thing regulators can do to combat that fraud is to develop an equally inexpensive alternative that is more secure, and FedNow might be that service.

In a new survey of bank executives from IntraFi, 90% of respondents said instances of check fraud have increased in recent years and half want law enforcement to make check fraud a bigger priority to stop criminals from stealing checks in the mail.

A rising number of check fraud cases involving counterfeit checks is compounding the already-serious problem of fraud in one of the oldest payment methods widely available.

The Biden Administration firmly rejects proposed cuts to key financial oversight and consumer protection agencies in the Republican-backed financial services appropriations bill for fiscal year 2025.

Federal banking agencies asked the Fifth Circuit to lift an injunction on new community lending regulations, arguing that the court misinterpreted the scope of the Community Reinvestment Act's reach.

Shares in the Dallas bank fell sharply after it disclosed that it expects to lose its contract for the Direct Express program, which would wipe out more than $3 billion in non-interest bearing deposits. Comerica's involvement with the Treasury Department's prepaid card program has been marred by controversy.

Mixed earnings results at Wells Fargo and the ongoing merger proposal between Discover Financial Services and Capital One Financial are creating added pressure for investors.

Banks reported that they have far more protections against fraud in digital channels versus branches or call centers, according to survey research.

As part of the three-year agreement, the group will fund a $1.22 million scholarship fund to recruit minorities into the appraisal profession.

The four lawsuits allege that attackers stole members' Social Security numbers, among other data. Patelco has not yet confirmed whether any data was stolen.

The banking industry is using the threat of lawsuits to push regulators toward a less stringent final rule on capital. Those in favor of tougher rules should fight fire with fire.

In this edition of American Banker's news quiz, see if you know the latest updates on JPMorgan Chase's fraud prevention methods, Supreme Court rulings on swipe fees, the woes of former Silvergate Bank executives and more.

The attack knocked out online banking, mobile banking and the call center at Patelco Credit Union.

A pair of rulings upended the deference afforded to agency interpretations of the law and extended the statute of limitations to bring regulatory challenges. But experts say the impact on banking regulation will likely be limited.

The excision of the Chevron doctrine from administrative law is the crest of a wave of litigative enthusiasm that has been building in the banking industry for years. But defanging the administrative state could also establish binding legal precedents that can cut both ways.

Silvergate's former CEO and onetime chief risk officer settled allegations that they misled investors about the strength of the bank's anti-money laundering compliance program. Meanwhile, Silvergate's former CFO denied separate allegations by the SEC and vowed to defend himself in court.

The bank has seen positive returns expanding its national branch network, but it is contending with fraudsters who are increasingly targeting branches.