President Donald Trump's push to reduce the corporate tax rate from 35% to 15% may face opposition from House Speaker Paul Ryan, R-Wis. House Republicans issued a plan last year that proposed a tax-rate reduction to 20% and exempted exports, and Ryan has questioned whether a 15% tax rate is realistic, given his goal of making the new tax plan revenue-neutral.
Twelve Wells Fargo board members, including Chairman Stephen Sanger, have been narrowly re-elected, despite stockholders' anger about the fake-accounts scandal. The board is expected to reshuffle in the next four years because six directors, including Sanger, are approaching mandatory retirement age.
Supporters and critics of the Consumer Financial Protection Bureau must find a balance and be willing to compromise, not seek dramatic wins, writes Ari Karen, principal at Offit Kurman. "Any one-sided victory for either side will be illusory at best, and lead to a slew of new and perhaps worse problems, requiring an entirely different set of subsequent reforms," he writes.
An uptick in credit card losses has dinged the bottom line at Discover Financial Services. Its charge-off rate hit a five-year high in the first quarter, and the company raised its loan loss provision by 38%.
Increases in average life expectancy bring with them the risk of running out of funds late in life. Mark Miller writes that advisers can perform a valuable service by encouraging their clients to think carefully about the financial consequences of longevity, and he lists several topics that should be part of that conversation.
A recently launched app predicts when accounts will run low on funds and then offers advances to users to protect them from overdraft fees. The app's creators, who will charge users $1 per month and are not partnering with any banks, have raised $3 million from investors.
The Consumer Financial Protection Bureau's Project Catalyst, designed to encourage collaboration among startups and financial firms, never lived up to expectations, writes House Financial Services Committee Vice Chairman Patrick McHenry, R-N.C. The project's failure should be used as an impetus for regulatory reform that encourages innovation and entrepreneurship, he writes.
President Donald Trump is expected to unveil a tax plan that would cut the corporate tax rate to 15% but would not include House Speaker Paul Ryan's proposal of a border-adjustment tax. The Senate can pass a tax bill with a simple majority if the legislation does not add to the federal deficit outside a 10-year allotment for budget legislation.
Many executives are optimistic about President Donald Trump and his business-friendly stance, but they also want real-world results. CEOs, economists and academics weigh in on Trump's progress.
An increase in loan delinquencies and a decrease in fee income hurt Capital One Financial's bottom line in the first quarter, with earnings falling short of analysts' expectations. Net income dropped 22% to $752 million, and noninterest income fell 9% to $1.06 billion.
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