“As CFPB Retreats, State AGs And Bank Regulators Step Up”
With the CFPB pulling back from enforcement and supervision, state banking regulators and attorneys general are moving to fill the gap. Banks should expect fewer federal enforcement actions but a more fragmented compliance landscape, with rules and risks varying by state.
“‘PayPal Is Coming For Banking’”
Banks should treat newly chartered or charter-seeking fintechs as serious competitors, not just partners, this article warns. It notes that PayPal’s application for an ILC charter would allow it to take deposits and expand small-business lending while offering interest-bearing savings accounts.
A separate American Banker report found that nonbank competition, especially in payments, is now a top concern for banks.
“JPMorgan Chase CEO Dimon Says Credit Card Rate Cap Will Be ‘An Economic Disaster’”
As President Trump doubled down on the credit card rate-cap idea in Davos, Jamie Dimon warned it would cut off credit to 80% of Americans. "People crying the most will not be the credit card companies. It will be the restaurants, retailers, travel companies, the schools, the municipalities, because people will miss their water payments, this payment and that payment," Dimon said.
“Trump Threatens to Sue JPMorgan Over Debanking”
Speaking of Trump and Dimon, the president wrote on Truth Social that he plans to sue JPMorgan, accusing the bank of “incorrectly” debanking him after Jan. 6, 2021. The post also rehashes reporting that Trump offered Dimon the Fed chair job, a story they’ve both denied.
“Wyoming Has Big Plans For Stablecoin”
Wyoming became the first state to publicly launch a stablecoin, the Frontier Stable Token. The state says it will help reduce swipe fees, streamline payments to vendors and government agencies, and enable faster disaster relief. The token is backed by dollar reserves and short-term Treasuries.
“We're Coming to ‘Fight You,’ PNC's Demchak Warns Banks”
PNC CEO Bill Demchak warned smaller banks that as mega banks (and banks like this) expand into more markets, smaller players will increasingly struggle to defend their turf. The Pittsburgh-based bank is pursuing acquisitions, branch expansion, and technology investments, betting that national reach and scale will matter more over time.
“Are Megabanks Next In Trump’s Crackdown On Stock Buybacks?”
Concerns are growing that the Trump administration could pressure big banks to curb stock buybacks after similar campaigns against homebuilders and defense contractors. Banks’ heavy regulation gives supervisors more leverage than in most sectors.
In Other News
The Supreme Court appears likely to let Fed board member Lisa Cook keep her job, negotiations progressed for President Trump’s “ultimate long-term deal” on Greenland, and travelers beware: a major storm is set to bring heavy snow and ice across the southern and eastern U.S. this weekend.