Major banks are upgrading ATMs to attract customers, adding features such as touch screens, the ability withdraw a large sum and access via mobile code, instead of debit card. High-tech, modern-looking machines that offer "perceived convenience" are what big banks want, says Andrew Hovet of Novantas, though some small banks can match them "feature to feature."
Today's appeals court case on whether the Consumer Financial Protection Bureau's framework is unconstitutional could have broad impacts not only on the agency itself but on financial industry regulations as a whole. Supporters of the agency say a favorable ruling would add legitimacy to the regulator's current structure, but lawmakers are pursuing legislation that would sharply curtail the agency's powers.
An appeals court decision in the Consumer Financial Protection Bureau's case against Chance Gordon, a California lawyer accused of violating the Consumer Financial Protection Act by misrepresenting homeowners, reflects a need for checks and balances in the executive branch, writes Rich Samp of the Washington Legal Foundation. The court's decision to let the executive branch retroactively ratify actions taken by CFPB Director Richard Cordray before his Senate confirmation should be reviewed and overturned by the Supreme Court, Samp writes.
Reform of the Dodd-Frank Act is being held up by Republican infighting over a measure that calls for looser regulation of banks when setting fees for debit cards. Banking lobbyists support repeal of the Durbin amendment, as does House Financial Services Committee Chairman Jeb Hensarling, R-Texas, while opponents, including Reps. David Young, R-Iowa, and Dennis Ross, R-Fla., think it would hurt consumers by giving too much control to two major firms.
Republicans and Democrats are challenging President Donald Trump's budget proposal, which would cut several government programs and would boost military and infrastructure spending. Legislators are concerned that the cuts would negatively affect constituents and that the economy would have to reach 3% growth by 2021 and remain there for six years for the proposal to be effective.
Auto-loan delinquencies increased to 3.82% in the first quarter from 3.52% in Q1 of 2016, according to the Federal Reserve Bank of New York. The increase comes despite high employment and low interest rates, indicating "there a subset of people that shouldn't have gotten loans," Standard Life economist Jeremy Lawson says.
Millennials, unlike preceding generations, can't rely on assets such as property and stock to appreciate enough to fund a comfortable retirement, writes columnist Noah Smith. Millennials tend to save more diligently than forebears do, according to research and despite popular perception, possibly because they witnessed the 2008 financial crisis.
Vermont is on track to be the ninth state to establish a state-sponsored retirement plan for private sector employees. The voluntary multiple-employer plan for businesses with 50 or fewer workers is scheduled to come into operation in January 2019, despite a resolution signed by President Donald Trump that could lead to the end of such plans.
FSR has named Anthony Cimino, its former senior vice president of risk management, as head of government affairs, overseeing policy efforts in areas including Financial Stability Oversight Council reform, retirement security, housing finance and financial technology. "FSR looks forward to having him at the helm as we look to modernize the financial regulatory system in a way that helps grow the economy while better serving and protecting consumers," President and CEO Tim Pawlenty said.
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