The Small Business Administration has stopped approving loans during the partial government shutdown, and some businesses that were counting on receiving SBA-backed loans are struggling. Loans totaling an estimated $2 billion have been delayed.
Consumer Financial Protection Bureau Director Kathy Kraninger is asking Congress to grant the agency clear authority to supervise lending to military members. The Military Lending Act prohibits lenders from imposing an interest rate of more than 36% on loans to service members, but former CFPB acting Director Mick Mulvaney rolled back compliance oversight last year, saying the agency did not have proper authority.
President Donald Trump reportedly has not yet decided whether he will renominate Marvin Goodfriend to a spot on the Federal Reserve Board. Goodfriend was approved by the Senate banking committee, but the nomination was never presented before the full Senate and lapsed in 2018.
Traditional pensions are disappearing and most retirees will have to do their own preparation for retirement, which, because of increasing longevity, could last for 20 years or more. Only 30% of current and future retirees have the financial knowledge they will need to make important decisions about saving and investing for retirement, according to a report from Aegon.
Bob Jones is scheduled to retire as CEO of Old National Bank on May 2. Chief Financial Officer Jim Ryan will become CEO.
Laurel Road Bank has agreed to sell its digital lending platform to KeyCorp for an undisclosed amount. "Laurel Road's model of focusing on advanced degree professionals is not only consistent with Key's approach but also complements our focus on specific sectors more broadly," says Chris Gorman, vice chairman and president of banking at KeyCorp.
Wells Fargo does not belong on college campuses, based on a Consumer Financial Protection Bureau report that shows the bank has charged students high fees for credit cards and other accounts, Sen. Elizabeth Warren, D-Mass., says in a letter to Wells Fargo CEO Tim Sloan. The bank says it has initiated efforts for consumers ages 17 to 24, such as waiving monthly service fees and offering other benefits.
Vetting of potential nominees for financial regulators reportedly is delayed because of the partial government shutdown. Background checks and paperwork are needed for Securities and Exchange Commission candidate Allison Lee and Federal Deposit Insurance Corp. candidates Graham Steele and Martin Gruenberg, sources say.
Student loans are undercutting the US housing market by preventing many people ages 24 to 32 from buying, a Federal Reserve study finds. From 2005 to 2014, homeownership in that age range declined to 36% from 45%, according to the study.
The six leading US banks all saw their shares rise after earnings reports released this week showed they achieved unprecedented combined profits in excess of $100 billion in 2018. Individually, JPMorgan Chase and Bank of America each reported record years, Goldman Sachs and Citigroup enjoyed their best profits since the financial crisis, and JPMorgan Chief Financial Officer Marianne Lake expressed confidence that the positive trend will continue, albeit at a marginally slower pace. Morgan Stanley, however, posted its earnings this morning, which fell short of analysts' expectations for profit and revenue.
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