Read the incredible inside story of the destruction of the Nord Stream pipeline, described by the Wall Street Journal as "one of the most audacious acts of sabotage in modern history." Also, the stock market is at risk of becoming an AI "echo chamber," and the CPI came in slightly cooler than expected, clearing the runway for the Fed to cut rates in September.
Here's what else you might want to read this week:
"CFPB to Scour Banks' Chatbot Use in White House Initiative"
The Biden administration has tasked the CFPB with addressing chatbot misuse and customer service "doom loops" as part of a new initiative aimed at tackling poor customer service. The bureau will also identify illegal uses of chatbots and AI voice recordings, including when customers think they're talking to a person.
"How Bank of America Ignores Its Own Rules Meant to Prevent Dangerous Workloads"
BofA's junior employees are regularly instructed to lie about their hours to skirt company policies aimed at preventing overwork, a WSJ investigation found. Many told the paper they pulled all-nighters and worked 100-hour weeks as a matter of routine, and in May, a former Green Beret died after the completion of a $2 billion deal.
"Vance Doubles Down on Trump Call for Bigger Role in Interest Rates"
The veep candidate said in a recent interview the White House should have a role in setting interest rates, though this would require an act of Congress. Former President Donald Trump has suggested repeatedly that his business background qualifies him to weigh in on monetary policy.
"For Younger Consumers, Payments Is Banking. Why That's Trouble for Traditional Institutions"
As younger consumers increasingly embrace digital and contactless payments, and as customer loyalty dwindles amid the proliferation of financial services options, Drucker's "innovate or die" mantra has never been more urgent.
"A Compelling Employee Perk: Education Benefits"
Good help is hard to find (and hard to keep). To attract and retain high-performing employees, community banks should consider investing in education and career development, this article says.
"Former Inspectors General Urge Senators to Confirm FDIC Pick"
Former inspectors general penned a letter to Senate Banking Committee Chair Sherrod Brown, D-OH, and ranking member Tim Scott, R-SC, urging them to confirm Christy Goldsmith Romero as FDIC chair before the election. It's looking increasingly unlikely this will happen, however.
"Enterprise Risk Management Is About Managing Risk, Not Avoiding It"
Concerns about credit quality, declining profits, and several recent bank failures have industry execs on edge. They can address the effects of industry turmoil through "proactive and holistic" ERM that's tied to corporate strategy, one expert says.
"Consumer Agency Cracks Down on Seller-Financed Home Sales"
Sellers of contracts for deed financing must provide many of the same disclosures and protections as those associated with traditional mortgage loans, the CFPB wrote in an advisory opinion. The bureau also released a report highlighting abusive practices in the market.
"Credit Unions Extend Bank-Buying Spree"
Spokane Teachers Credit Union announced it was buying $550 million-asset Community Bank (the institution's actual name), pushing this year's tally of CU-bank deals to 13. The previous high was 16, set in 2022.
"Senators ask Dimon to Justify New Checking Account Fees"
Sens. Elizabeth Warren, D-MA, and Chris Van Hollen, D-MD, told JPMorgan's CEO to table plans for charging fees on checking accounts, calling the idea "outrageous" given the megabank's "record profits."
"Mortgage Rates Fall Despite Fed's Tough Love Approach"
Even though the Fed has maintained its benchmark policy rate since last July, borrowing costs for prospective homebuyers have been falling for months. Recently, mortgage rates plunged to their lowest levels in over a year.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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