House Speaker Nancy Pelosi, D-Calif., was unable to strike an agreement with the White House on a pared-down pandemic relief package Wednesday, and Democrats called off plans for a vote on the legislation. Both sides indicated talks would continue, after House leaders released a $2.2 trillion package, having scaled back a $3.4 trillion plan developed in May.
Federal Reserve Bank of New York researcher Asani Sarkar analyzes the conclusions of a June 2020 report from the Financial Stability Board assessing the effects of the post-crisis too-big-to-fail reforms on global systemically important banks.
The FBI has issued a Private Industry Notification to the financial sector about credential stuffing attacks fed by billions of stolen credentials available on the darknet. One problem is that many bank customers are reluctant to use multifactor authentication, says Chris Pierson, CEO of security company BlackCloak.
An internal investigation by JPMorgan Chase has found more than 500 employees received funding from the Economic Injury Disaster Loan program and some loans were received improperly, sources say. The investigation has reportedly found that many of the loans were likely legitimate, funding side businesses run by employees outside of their work at the bank.
Community banks have been reluctant to acquire other financial institutions or invest in new technology in 2020, and layoffs are increasing amid the ongoing coronavirus pandemic, according to a survey by the Conference of State Bank Supervisors.
Special-purpose bank charters for fintechs are needed to address the continued "unbundling" of financial services, said Brian Brooks, acting Comptroller of the Currency. Banking groups have opposed such charters, saying they put customers and the financial system at risk.
Amazon has entered the race to use biometrics for contactless payments with its palm-scanning payment and authentication service Amazon One. Several banks, including BNP Paribas, Societe Generale and NatWest, have tested biometric payments solutions, and Apple is exploring similar applications of the technology.
Bank loan officers responding to a Federal Reserve survey cited unattractive terms for borrowers and lenders as reasons for the sluggish uptake of the Fed's Main Street Lending Program. "Major fractions of banks of all sizes indicated that the loss sharing with the MSLP in the event of a default was too uncertain, and that the required certifications and covenants were too restrictive for the bank," the Fed said.
German fintech unicorn Deposit Solutions, which has the backing of venture capitalist Peter Thiel, will launch its savings platform in the US as SaveBetter.com. The banking-as-a-service platform allows users to make deposits across a portfolio of banks.
A federal judge sentenced former Wall Street trader Paul Rinfret, 71, to more than five years in prison after Rinfret pled guilty to securities and wire fraud in a scheme that cheated investors out of $20 million. Rinfret sold investors limited partnership interests in Plandome Partners LP, saying he would use an algorithm to trade futures contracts linked to the S&P 500, but spent most of the money on himself.
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