The CFPB has ordered UniRush (purveyor of the RushCard prepaid debit card) and its payment processor, MasterCard, to fork over $13 million in fines after a breakdown last year that blocked thousands of customers from...more
2/2/2017
/ Automotive Industry ,
Banking Sector ,
Consumer Financial Protection Bureau (CFPB) ,
Cross-Selling ,
Financial Institutions ,
Fines ,
Fraud ,
Interest Rate Adjustments ,
JPMorgan Chase ,
Lehman Brothers ,
MasterCard ,
National Emissions Standards ,
Online Marketplace Lending ,
Prepaid Payment Products ,
Volkswagen ,
White Collar Crimes
Unfortunately enough for Deutsche Bank, 2017 isn’t starting off much better than the previous year. The German banking giant has agreed to pay a $425 million fine to NY state authorities (and another $204 million to the UK’s...more
1/31/2017
/ Banking Sector ,
Banks ,
Bonds ,
Capital Requirements ,
Deutsche Bank ,
Dodd-Frank ,
Elon Musk ,
Energy Storage ,
Facebook ,
Federal Reserve ,
Financial Institutions ,
Investors ,
Microsoft ,
Money Laundering ,
Renewable Energy ,
Russia ,
Stress Tests ,
Tesla ,
Trump Administration
The recent US rejection of the TPP will have wide-reaching effects in Asia. Among them is the strong likelihood of 80s-style trade warring between Japan and the US....more
1/26/2017
/ Aircraft ,
Banking Sector ,
Banks ,
Biotechnology ,
Boeing ,
Credit Suisse ,
Department of Labor (DOL) ,
Deutsche Bank ,
Dow Jones ,
Fiduciary Rule ,
Financial Markets ,
Mergers ,
Nasdaq ,
RMBS ,
Royal Bank of Scotland ,
Securities ,
Stock Exchange ,
Trade Relations ,
Trans-Pacific Partnership ,
US Trade Policies
Meanwhile, some banking officials—including a BOE representative speaking in NYC yesterday—contend that the legal expenses related to financial misconduct enforcement actions and litigation (roughly $275 billion for global...more
10/21/2016
/ Acquisitions ,
Banking Sector ,
Banks ,
Barclays ,
Broker-Dealer ,
Consumer Lenders ,
Dark Pool ,
Financial Markets ,
Hedge Funds ,
Internet Lenders ,
Investors' Exchange (IEX) ,
Nasdaq ,
Online Marketplace Lending ,
Tobacco
Federal regulators unveiled a proposal yesterday that would push the country’s biggest banks and other “critical financial companies” to shore up cybersecurity protocols, to prevent hacks, and to have a recovery plan at the...more
10/20/2016
/ Bank Accounts ,
Banking Sector ,
Banks ,
Bonds ,
Cross-Selling ,
Cyber Crimes ,
Cybersecurity ,
Earnings Reports ,
Economic Development ,
Embezzlement ,
Fraud ,
Hackers ,
Identity Fraud ,
Initial Public Offering (IPO) ,
Insider Trading ,
Tax Evasion ,
Uber ,
Wells Fargo
Holding companies appear to be an important new feature of the “living will” revisions the big banks have been making in an effort to appease the Fed and FDIC’s efforts to stamp out “too big to fail” entities. The idea is for...more
10/13/2016
/ Bank Accounts ,
Banking Sector ,
Banks ,
Consumer Financial Products ,
Consumer Lenders ,
Corporate Culture ,
Cross-Selling ,
Federal Reserve ,
FinTech ,
Fraud ,
Holding Companies ,
Interest Rate Adjustments ,
Morgan Stanley ,
Online Marketplace Lending ,
Russia ,
Tone At The Top ,
Toyota ,
Wells Fargo
In a “highly anticipated” ruling from the US Court of Appeals for the DC Circuit, a three-judge panel has found the structure of the Consumer Financial Protection Bureau unconstitutional, holding that the current organization...more
10/12/2016
/ Abandoned Property ,
Administrative Proceedings ,
Amazon Marketplace ,
Article II ,
Bank Accounts ,
Banking Sector ,
Blockchain ,
Constitutional Challenges ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Due Process ,
Financial Markets ,
HUD ,
Insurance Industry ,
Kickbacks ,
Morgan Stanley ,
Mortgage Insurance ,
Mortgages ,
PHH Corp. v CFPB ,
Referral Fees ,
Reinsurance ,
Removal For-Cause ,
RESPA ,
RMBS ,
Samsung ,
Single Director ,
Smartphones ,
Statute of Limitations ,
Statutory Interpretation ,
Technology Sector ,
Vacant Properties ,
Virtual Currency
The Deal Professor weighs in on Yahoo’s announcement last week of the hack of roughly 500 million of its customers’ data and the specter of the MAC (material adverse change) that Verizon may choose to invoke to dance away...more
9/26/2016
/ Acquisitions ,
Bank Accounts ,
Banking Sector ,
Cross-Selling ,
Cybersecurity ,
Data Breach ,
Distressed Debt ,
Google ,
Hackers ,
Hiring & Firing ,
Initial Public Offering (IPO) ,
Insurance Industry ,
Material Adverse Effects ,
Mergers ,
Mortgage Loan Originators ,
Mortgages ,
Putative Class Actions ,
Salesforce ,
Search Engines ,
Snapchat ,
Social Media ,
Stress Tests ,
Takeover Bids ,
Twitter ,
Verizon ,
Wells Fargo ,
Yahoo!
Well, see, Yahoo just doesn’t have enough on its plate these days. So why not the revelation that hackers stole data on 500 million users in 2014? The hack—thought to be a state-sponsored affair—is likely the biggest data...more
9/23/2016
/ Anbang ,
Apple ,
Bank Accounts ,
Banking Sector ,
Banks ,
Corporate Culture ,
Cross-Selling ,
Cyber Attacks ,
Data Breach ,
Department of Justice (DOJ) ,
Financial Markets ,
Hackers ,
Initial Public Offering (IPO) ,
Insider Trading ,
Marriott ,
Search Engines ,
Securities and Exchange Commission (SEC) ,
Tesla ,
Tone At The Top ,
Wall Street ,
Wells Fargo ,
Yahoo!
Testifying before the Senate Banking Committee yesterday, Wells Fargo CEO John Stumpf admitted that the illegal sham-account-creation activity at the heart of its recent SEC fine may have begun earlier than first reported....more
9/21/2016
/ Antitrust Litigation ,
Apple ,
ATMs ,
Bank Accounts ,
Banking Sector ,
Banks ,
Barclays ,
Bitcoin ,
Department of Justice (DOJ) ,
Digital Currency ,
Exxon Mobil ,
Financial Institutions ,
Fraud ,
Interest Rate Adjustments ,
Interest Rates ,
Japan ,
JPMorgan Chase ,
Libor ,
Ponzi Scheme ,
Regulatory Oversight ,
Securities and Exchange Commission (SEC) ,
Senate Banking Committee ,
Tesla ,
Virtual Currency ,
Wells Fargo
In a closely watched and dissected speech yesterday, Federal Reserve governor Lael Brainard told the crowd gathered at the Chicago Council on Global Affairs that she favored “prudence” in raising rates despite recent signs of...more
9/13/2016
/ Agricultural Sector ,
Bank Accounts ,
Banking Sector ,
Banks ,
Financial Markets ,
Hedge Funds ,
Interest Rate Adjustments ,
Mergers ,
Pharmaceutical Industry ,
Ponzi Scheme ,
Stocks ,
Wells Fargo
We’ve got a number for that Wells Fargo settlement/fine, and it’s a doozy: $185 million for illegal banking practices (including secretly issuing credit cards without customer consent, signing up customers for online banking...more
9/9/2016
/ Administrative Law Judge (ALJ) ,
Banking Sector ,
Banks ,
Commodities ,
Cybersecurity ,
Deutsche Bank ,
Discovery ,
Dodd-Frank ,
Fraud ,
Healthcare ,
Junk Bonds ,
Private Equity ,
RMBS ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Wells Fargo
US regulators are “ramping up oversight” of Swift—the financial messaging system used throughout global finance that’s been a key conduit for hackers in recent attacks of Bangladeshi and Ecuadorian banks....more
8/25/2016
/ Algorithmic Trading ,
Algorithms ,
Bank Accounts ,
Banking Sector ,
Disclosure Requirements ,
Financial Institutions ,
Gig Economy ,
Goldman Sachs ,
Hackers ,
MCDC ,
Mobile Devices ,
Municipal Bonds ,
Online Marketplace Lending ,
Peer-to-Peer ,
Retirement Plan ,
Securities and Exchange Commission (SEC) ,
SWIFT ,
Uber
The Journal reports that big companies [banks included] are pouring more into dividends than at “any time since the financial crisis”—likely, a response to record-low bond yields that’s “put a premium” on kicking back...more
8/19/2016
/ Banking Sector ,
Denmark ,
Dividends ,
Financial Crisis ,
Goldman Sachs ,
Italy ,
Job Creation ,
Moody's ,
Mortgages ,
RMBS ,
Securities ,
Whistleblowers
A day-after assessment of the Uber/Didi deal through the lens of another yet tech giant who’s failed to overcome the many obstacles of establishing a meaningful presence in China....more
8/2/2016
/ Acquisitions ,
Administrative Proceedings ,
Banking Sector ,
China ,
Cloud Computing ,
Corporate Bonds ,
Digital Currency ,
Japan ,
Mergers ,
Microsoft ,
Oracle ,
Private Equity ,
Securities and Exchange Commission (SEC) ,
Sharing Economy ,
Theranos ,
Uber
A pair of whistleblowers is seeking discovery-related sanctions against Wells Fargo for allegedly concealing “crucial evidence” for their False Claims Act claims over fees added to government-backed mortgages....more
7/28/2016
/ Banking Sector ,
Department of Justice (DOJ) ,
Deutsche Bank ,
EU ,
Facebook ,
False Claims Act (FCA) ,
Financial Crimes ,
FOMC ,
Fraud ,
Lloyds Banking Group ,
Member State ,
Mortgages ,
Profits ,
Referendums ,
RMBS ,
UK Brexit ,
Wells Fargo ,
Whistleblowers
Private equity bigwig Lynn Tilton has reportedly hired appellate superstar Paul Clement (after Gibson Dunn got the boot) to represent her in her “bid to revive her challenge to the [SEC’s] in-house court at the Second...more
7/26/2016
/ Administrative Proceedings ,
Alibaba ,
Amazon Marketplace ,
Banking Sector ,
Bitcoin ,
Digital Currency ,
Drones ,
EU ,
Going-Private Transactions ,
Goldman Sachs ,
Libor ,
Member State ,
Private Equity ,
Redbox ,
Referendums ,
Securities and Exchange Commission (SEC) ,
Startups ,
Takeover Bids ,
UK ,
UK Brexit ,
Unmanned Aircraft Systems ,
Verizon ,
Virtual Currency ,
Yahoo!
Even with US markets shrugging off the Brexit [maybe?] by the end of last week, the effects of the split are FAR from over. One recent ripple: Standard Life Investments UK Real Estate mutual fund—which invests in high-end...more
7/5/2016
/ Banking Sector ,
Banks ,
Barclays ,
EU ,
Financial Markets ,
Libor ,
Loans ,
Member State ,
Mutual Funds ,
Private Equity Firms ,
Referendums ,
Securities and Exchange Commission (SEC) ,
Swiss Banks ,
Transparency ,
UBS ,
UK ,
UK Brexit ,
Withdrawal
Yesterday, Hershey rejected Kraft spinoff Mondelez’s $23 billion takeover offer, but the dealmaking efforts may not be over. The success of any increased offer lies in the hands of the Hershey Trust Company, a charitable...more
7/1/2016
/ Apple ,
Bank of England ,
Banking Sector ,
Cable Television Providers ,
EU ,
Food Manufacturers ,
Foreclosure ,
Hersheys ,
Homeowners ,
HUD ,
Interest Rates ,
Kraft ,
Member State ,
Mergers ,
Mortgages ,
Music Streaming ,
Private Equity ,
Puerto Rico ,
Real Estate Market ,
Referendums ,
Takeover Bids ,
Technology Sector ,
UK ,
UK Brexit
US banks made a strong showing in part 2 of the latest round of the Fed’s stress tests. Only Morgan Stanley didn’t pass unconditionally (concerns over the company’s “internal controls and processes” tripped it up), while the...more
6/30/2016
/ Banking Sector ,
Banks ,
Bitcoin ,
Cable Operators ,
Deutsche Bank ,
Entertainment Industry ,
ETFs ,
EU ,
Film Industry ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Markets ,
General Electric ,
Google ,
Initial Public Offering (IPO) ,
Internal Controls ,
Member State ,
Merger Agreements ,
Morgan Stanley ,
Referendums ,
Sale of Assets ,
Securities and Exchange Commission (SEC) ,
SIFIs ,
Stocks ,
Stress Tests ,
UK ,
UK Brexit
Big financial firm stress test results are out from the Fed later today, and though all banks proved up to the task of reserving enough capital (as reported last Friday), the economic downturn simulation that’s part of round...more
6/29/2016
/ AirBnB ,
Banking Sector ,
Barclays ,
Business Plans ,
Commercial Bankruptcy ,
Cyber Attacks ,
Cybersecurity ,
EU ,
Financial Institutions ,
Financial Markets ,
Investment Adviser ,
Libor ,
Member State ,
Real Estate Market ,
Referendums ,
Securities and Exchange Commission (SEC) ,
Stock Markets ,
Stress Tests ,
UK ,
UK Brexit
Continuing Brexit coverage: With the pound in freefall and markets going haywire, leaders on both sides of the Brexit debate in the UK signaled today that Britain hopes to stay in the EU marketplace, while some in Parliament...more
6/28/2016
/ Automotive Industry ,
Banking Sector ,
Carbon Emissions ,
Dodd-Frank ,
Dow Jones ,
Energy Sector ,
EU ,
Financial Institutions ,
Member State ,
Merger Agreements ,
Mineral Extraction ,
Oil & Gas ,
Referendums ,
Reporting Requirements ,
Resource Extraction ,
Securities and Exchange Commission (SEC) ,
Trade Agreements ,
UK ,
UK Brexit ,
Volkswagen
Some thoughts about why the relatively dismal May employment numbers (just 38k jobs added) isn’t really as bad as it would seem on first glance...more
6/6/2016
/ Antitrust Violations ,
Bank of America ,
Banking Sector ,
Banks ,
Capital Investments ,
Class Action Arbitration Waivers ,
Credit Suisse ,
Deutsche Bank ,
Employment Contract ,
ETFs ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Markets ,
Job Creation ,
JPMorgan Chase ,
Market Manipulation ,
Securities and Exchange Commission (SEC) ,
Trading Platforms ,
Unemployment
All of us are entitled to a change of heart. But when you’re one of the world’s most famous activist investors and the change involves a decent-sized stake in a drug maker (Allergan) that just 5 months ago was mixed up with a...more
6/1/2016
/ Activist Hedge Funds ,
Allergan Inc ,
Anbang ,
Bank of America ,
Banking Sector ,
Banks ,
Bonds ,
Capital Markets ,
Community Banks ,
Merger Agreements ,
Pfizer ,
Saudi Arabia ,
Takeover Bids ,
Valeant
Lending Club week continues here on the Brief, where the Deal Professor tries to take the good (disrupting the traditional banking system and opening up new paths of credit for consumers) with the bad (yet another...more
5/18/2016
/ Bank of America ,
Banking Sector ,
Bonds ,
Class Action ,
Consumer Lenders ,
Data Breach ,
Distressed Debt ,
Financial Markets ,
Gender Discrimination ,
Google ,
HUD ,
Lending Club ,
Mortgages ,
Online Marketplace Lending ,
Pandora ,
Stock Drop Litigation ,
Whistleblowers