Check out the recap of last night's presidential debate and learn about the effort to put data centers in space. Heading to Long Island this summer? Um … you may need a bigger boat. Here's what else you might want to read this week:
"CFPB Sets Record for Fair Lending Enforcement Actions and DOJ Referrals"
Need proof the CFPB under Director Rohit Chopra has been particularly active? Probably not, but here's some anyway: The bureau initiated 28 reviews or fair lending exams and referred 18 matters to the DOJ, both new records for the agency.
In other news, the CFPB extended the compliance deadline for its small-business rule by 290 days to July 18, 2025, roughly the same amount of time the rule languished in court because of a temporary injunction. The agency said it won't impose penalties for reporting mistakes for another year.
"Americans Chasing High Interest Rates Risk Falling Into a 'Cash Trap'"
With rate cuts looming, consumers are facing difficult decisions about how to deploy their cash, the Wall Street Journal wrote. Many like the safety and predictability of high-yield savings accounts and money market funds, but they're potentially missing out on bigger gains.
"Bank M&A Deals Substantially Bigger in 2024"
Banks announced 27 acquisitions during the second quarter (as of June 14) at a combined value of $5.45 billion. While that's not a ton of deals, the average size is relatively large; 126 deals were announced during the previous five quarters at a combined value of just $5.2 billion.
"Stop Treating All Small Businesses Alike"
For years, banks have acknowledged a need to better serve small and midsize businesses. Now they have technological tools to do so, one expert claims.
"OCC Looks to Revamp Bank Recovery Planning Standards"
Under a new proposal, banks with at least $100 billion in assets would need to develop recovery plans to respond to severe stress in the system. (The current threshold is $250 billion.) SVB, Signature, and First Republic were all between $100 billion and $250 billion in assets before failing.
"These institutions were not subject to recovery planning, which would likely have bolstered their resilience," Acting Comptroller Michael Hsu wrote in the proposal.
"Top-Performing Larger Community Banks Succeeded at Minding the Gap"
In 2023, the top-performing banks between $2 billion and $10 billion in assets were those that capitalized on higher interest rates, with their rate-sensitive assets exceeding their rate-sensitive liabilities.
"GM Subsidiary Withdraws ILC Charter Application"
Trade groups such as the ICBA had expressed concerns about risks to the FDIC's deposit insurance fund and conflicts of interest, among others. The automaker's statement strongly hinted it will resubmit at a later point, likely after a new FDIC chair is in seat (FDIC Chair Martin Gruenberg is a well-known and long-standing opponent of ILCs owned by non-banking firms). GM's financial arm has been seeking an industrial loan charter since 2020.
"How Banks Should Leverage Trusted Networks to Forge Stronger Community Ties"
Networks of individuals and businesses with shared goals represent significant marketing opportunities for community banks, one expert says. To tap such networks, banks must demonstrate that they are ethical and will provide financial support to their local areas.
"Fed Hits Fast-Growing Community Bank with Enforcement Action"
The cease-and-desist order highlights how regulatory scrutiny of rapidly growing banks has intensified in the wake of SVB's failure.
"Surge in Credit Report Lawsuits Has Banks, Credit Agencies Scrambling"
In recent years, social media influencers and credit repair companies have pushed consumers to file a bevy of lawsuits against institutions, alleging failures to properly investigate inaccurate information on credit reports.
"Big Banks Pass Fed Stress Test as They Fight Stricter Capital Rules"
All 31 of the big banks subject to the Fed's annual stress tests passed, indicating that they would have enough capital to withstand a severe global downturn. However, the tests revealed some areas of weakness, including capital ratios that declined faster than last year because expenses are higher and banks' balance sheets are laden with more risk.
But in a bit of irony, JPMorgan Chase announced that it should have done worse on the test, saying the Fed underestimated the bank's potential losses. The bank said the Fed's estimate seemed to have JPM's other comprehensive income too high, and it would have expected "modestly higher" losses.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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