Department of Justice investigators are examining whether financial incentives provided by Visa to PayPal and Square prevented the fintechs from using other money transfer technologies or card networks, sources say. The inquiry reportedly is part of the DOJ's antitrust investigation into Visa first reported in March.
Consumer Financial Protection Bureau Director Rohit Chopra told the House Financial Services Committee the bureau aims to ensure big tech companies don't dominate competition and limit consumers' options in the retail finance and payments sectors. Payment systems operated by major tech companies should adhere to consumer protections and not "undermine a fast, fair and transparent system," said Chopra.
The US Securities and Exchange Commission is reportedly only allowing unleveraged exposure to bitcoin futures contracts and has asked Valkyrie Investments to withdraw its leveraged bitcoin exchange-traded fund proposal, according to sources. Meanwhile, Direxion has filed an application for an ETF that effectively bets against the ProShares ETF's bitcoin futures contracts.
Despite some skepticism among traditional institutions, banks should embrace open banking to improve consumers' experience and to help the sector evolve, says Citigroup Chief Innovation Officer Vanessa Colella. "I think 100% of big banks understand that we need to partner with fintech and tech companies to work in data and cyber, not just for client-facing tech, but also for enabling infrastructure at the bank as well," Colella says.
Bank of America is not merely a traditional bank but is also "clearly a technology company," CEO Brian Moynihan says. "We spend about $3.5 billion a year on new code implementation. New products and services are driven by technology," Moynihan says.
China's policymakers face a dilemma as their announced plan to achieve zero carbon emissions by 2060 competes with the need to supply electricity for industrial production and the domestic needs of its populace. The country remains heavily reliant on coal to generate energy, and a UBS report estimates it will need investment of up to $2 trillion a year to make the transition to cleaner sources.
An increase in consumer loan originations helped boost Capital One's third quarter earnings, however, increased marketing spend to stay competitive will remain a headwind, said CEO Richard Fairbank.
Flagstar Bancorp said regulators are unlikely to approve its acquisition of New York Community Bancorp this year. The $2.6 billion buyout is now expected to close sometime in 2022.
Sen. Joe Manchin's opposition to the proposal that would require banks to report customer transaction information to the Internal Revenue Service has left banks cautiously optimistic the plan will not advance to legislation. "Today made two things clear: This proposal is on life support as Democrats have resorted to making changes by the hour," said Consumer Bankers Association President and CEO Richard Hunt.
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