The Federal Reserve is looking into the root cause of the fake-account scandal at Wells Fargo, Chair Janet Yellen says. "We're working very hard on it," Yellen says in response to whether the Fed will take enforcement action.
Shrinkage of the Federal Reserve's balance sheet is expected to benefit banks by raising long-term interest rates and by letting banks acquire more profitable high-quality liquid assets, which banks must hold to comply with post-crisis regulation. JPMorgan Chase, for example, could see a 4% increase in earnings per share next year, says Nomura Instinet analyst Steven Chubak.
A draft bill by the European Commission would place oversight of the upcoming Markets in Financial Instruments Directive II under the purview of the European Securities and Markets Authority in Paris. Some are calling for a strengthening of the ESMA as MiFID II takes effect.
Mortgage lenders have more flexibility to collect data about race and ethnicity of applicants under rules revised by the Consumer Financial Protection Bureau pertaining to the Equal Credit Opportunity Act. Meanwhile, the CFPB is seeking comment on what data should be made public under the Home Mortgage Disclosure Act.
A Cato Institute survey of 2,000 Americans finds 63% favor a multimember commission over a single director to lead the Consumer Financial Protection Bureau, indicating bipartisan thought. Among respondents, 81% of Democrats support the CFPB, while 78% of Republicans and 60% of independents oppose it.
The Federal Reserve is collaborating with banks to act on fraudulent transactions and compromised data in the wake of an Equifax breach affecting 143 million consumers. Fed Chair Janet Yellen calls the data breach "very serious" and says it highlights the importance of strong cybersecurity.
Mergers and acquisitions among banks stand at 173 this year, down from 178 at the same time last year, according to FIG Partners. If this pace persists, bank M&A this year could be at the lowest level since 2009.
Increased regulation, a decline in community banks, limited access to capital and an aging population are among potential factors for a decrease in startups, economists say. The Census Bureau reports 414,000 businesses were founded in 2015, compared with 558,000 in 2006.
- Page 1