Munis

Even before Tim Sloan stepped down as chief executive of the scandal-stung Wells Fargo, the bank had already gotten back into the good graces of the biggest U.S. state.

JPMorgan Chase, State Street, Wells Fargo, Citigroup and Bank of America decreased their holdings of tax-exempt bonds by nearly $16 billion in the first half of 2018, according to quarterly filings with the U.S. Securities and Exchange Commission.

The regulation implements a recent legislative provision dealing with how banks comply with post-crisis liquidity requirements.

The Securities and Exchange Commission moved to require states and local governments to disclose bank loans and privately placed debt, seeking to address concerns that bondholders are being left in the dark about a fast-growing segment of public finance.

The company has created a municipal group that will focus on nonpublic financing services at a time when loans to bond issuers are declining.

Little-known Office for Management and Budget official Kathy Kraninger would succeed acting director Mick Mulvaney, her OMB boss; Wells Fargo still faces the big chill from several big cities and states.

Banks are extending maturities and making loans to riskier credits to boost volume; banks cut their muni holdings as tax rates drop.

The OCC finds that Wells Fargo was not alone in its sales abuse practices (though it's not naming names); Fifth Third's Tim Spence is our Digital Banker of the Year; the CFPB acting director wipes out the agency's Consumer Advisory Board; and more from this week's most-read stories.

U.S. banks reduced their holdings of state and local government bonds for the first time since 2009 after the federal government slashed corporate tax rates, according to figures released by the Federal Reserve Thursday.

An ex-banker running for governor has proposed the idea. It's a political perennial, but industry officials are nonetheless raising concerns.