The 30-year fixed-rate mortgage probably does not need a government guarantee to survive, Randal Quarles, Federal Reserve vice chairman for supervision, said at a Senate banking committee hearing. Sen. Heidi Heitkamp, D-N.D., however, said, "There are a number of people in smaller or midsized institutions who believe it would be difficult to take a 30-year interest-rate risk without some kind of assurance they could offset that risk."
Wells Fargo could be close to reaching agreement on a fine of up to $1 billion to be levied by the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau, sources say. The settlement, which could be announced today, addresses problems that include improper charges in the bank's mortgage and auto-loan businesses.
Randal Quarles, vice chairman for supervision at the Federal Reserve, has been pressed by Republican lawmakers to address banks' reduction of business with the gun industry but has declined, saying it is not his place to second-guess the decision. Citigroup and Bank of America have pulled back business with gun sellers and manufacturers, respectively, which supporters of an overhaul of gun laws have praised and which critics have called an overstep in authority.
A 2013 auto-finance bulletin from the Consumer Financial Protection Bureau lacks clarity, and the House should follow the Senate in voting to repeal it, says CBA President and CEO Richard Hunt, among others. "CBA member banks are strongly committed to ensuring fair lending policies and practices while fulfilling consumers' financial needs," Hunt says. "For that reason, it is critical to have clear rules and guidance from regulators so our member banks can be certain of compliance."
Consumer Financial Protection Bureau acting Director Mick Mulvaney has warned staff members against leaking information to outsiders. The bureau's inspector general has been asked to investigate leaks, Mulvaney says in a staff memo.
BancorpSouth in Mississippi has agreed to acquire Icon Capital in Texas for 4.125 million shares and $17.5 million in cash. The transaction, expected to close in the second half of 2018, expands BancorpSouth's Texas presence because Icon has seven full-service branches in the Houston area.
Only 14% of baby boomers and 24% of millennials want the government to be primarily responsible for their retirement security, according to a recent MetLife survey. The survey also shows 74% say they prefer paying into a company-sponsored retirement plan compared with 26% who say they prefer paying into Social Security.
JPMorgan Chase plans to add roughly 700 employees as it opens up to 70 branches in the Washington, D.C., area. In a recent interview, CEO Jamie Dimon also spoke about the economics of banking, saying reinvestment of profits would happen over time, not overnight.
Vicki Robin, the 72-year-old co-author of the 1992 book "Your Money or Your Life," has become somewhat of a cult hero among millennials who adhere to the acronym FIRE -- financial independence, retire early. The movement is one way millennials are forgoing traditional retirement savings schemes and reimagining how they can attain financial independence in the current economy.
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