Risk


  • A view of the Marriner S. Eccles Federal Reserve building.
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    Anna Moneymaker via Getty Images
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    Fed hits Synapse partner Evolve with enforcement action

    An exam last year revealed Evolve Bank & Trust didn’t have an effective risk management framework in place for its fintech partnerships, the Fed said.

    By June 14, 2024
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    Just_Super via Getty Images
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    Terraform Labs, Do Kwon to settle with SEC for $4.47B

    Meanwhile, Kwon remains in Montenegro as courts wrestle with whether or not to extradite him to his home country of South Korea or to the U.S. to face charges.

    By June 13, 2024
  • Trendline

    Fraud and AML in banking

    It’s not just big banks like Citi and TD that face stiffer AML oversight from regulators. The FDIC is looking closely at banks offering BaaS alongside fintechs.

    By Scshlj staff
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    Courtesy of FDIC
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    Synapse trustee McWilliams finds $85M gap in frozen funds

    Partner banks of the bankrupt fintech middleman hold roughly $180 million in demand deposit and for-benefit-of accounts associated with end users. But those users are owed $265 million, a court filing shows.

    By June 12, 2024
  • A sign outside of a city building reads "Available" and "office/retail" as people walk by on the sidewalk
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    Justin Sullivan / Staff via Getty Images
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    Wells, PNC CFOs see office spaces leading CRE stress

    “Older office buildings that are not renovated in certain areas of different cities are the places that you’re seeing the most stress,” Wells Fargo CFO Mike Santomassimo said Tuesday.

    By June 12, 2024
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    Courtesy of Morgan Stanley
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    Morgan Stanley CEO outlines AI benefits

    Although the proliferation of AI will benefit the lender’s investment banking segment, the technology is likely to be “even more” of a game changer for its wealth business, said CEO Ted Pick.

    By June 11, 2024
  • The US Federal Reserve building in Washington DC
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    uschools via Getty Images
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    Canadian bank’s Minnesota deal gets Fed approval

    VersaBank has waited two years for a green light on its $13.5 million proposed purchase of Stearns Bank Holdingford. Now it just needs the OCC's sign-off.

    By June 7, 2024
  • OCC Acting Comptroller Michael Hsu testifies in front of the Senate Banking Committee on Aug. 3, 2021
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    Retrieved from Senate Banking Committee.
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    Banks, AI partners must share responsibility for safety: OCC’s Hsu

    “With AI, it is easier to disclaim responsibility for bad outcomes than with any other technology in recent memory,” Acting Comptroller of the Currency Michael Hsu said Thursday.

    By June 7, 2024
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    ultramarine5 via Getty Images
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    Scshlj

    4 things banks are doing to grease the M&A wheels

    Cautious regulators and more drawn-out regulatory approval timelines have given rise to some changes in merger agreement conditions.

    By June 6, 2024
  • Wells Fargo branch exterior
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    Courtesy of Wells Fargo multimedia resources
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    Wells Fargo sued in alleged aid of $300M Ponzi scheme

    The proposed class action claims that the lender, from 2011 until 2021, knew of a scheme that duped more than 1,000 investors, most of whom were seniors.

    By June 6, 2024
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    ipopba via Getty Images
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    Yotta CEO: 85K customers lose access to funds due to Synapse-Evolve tussle

    The fintech’s customers, who have a combined $112 million in savings, have been locked out of their accounts amid the Synapse-Evolve Bank & Trust dispute, Yotta CEO Adam Moelis told CNBC.

    By June 5, 2024
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    Spencer Platt / Staff via Getty Images
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    NYCB names Otting executive chair

    Alessandro DiNello, whom Otting replaces, will retain a seat on the board and serve as a senior adviser, NYCB said.

    By June 5, 2024
  • The exterior of a Citizens Bank is pictured.
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    Kate Tornone/Scshlj
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    Citizens CEO: ‘You have to walk before you can run’ with AI

    Banks need to focus on big use cases to get the most out of AI, Citizens CEO Bruce Van Saun said. “If you have a ‘thousand flowers bloom’ strategy, you’ll start spinning your wheels," he said.

    By June 4, 2024
  • Bank of America's logo on a building façade
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    Mario Tama / Staff via Getty Images
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    Bank of America tweaks its restriction on firearms, energy lending

    New language indicates lending decisions go to senior risk officials for case-by-case evaluation, rather than being a non-negotiable “no.”

    By June 3, 2024
  • A Banco Santander's logo is seen at a bank's branch before a news conference to announce the 2019 results on January 29, 2020 in Boadilla del Monte, in Madrid, Spain.
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    Pablo Blazquez Dominguez via Getty Images
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    Hackers threaten to sell Santander customer details for $2M: report

    The collective ShinyHunters, which claimed to be behind the Ticketmaster breach reported last week, said it stole information related to 30 million Santander customers in an ad seen by the Financial Times.

    By June 3, 2024
  • An exterior shot of a Fifth Third Bank location is shown
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    Courtesy of Fifth Third
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    Fifth Third CEO eyes systemically important label for nonbanks

    Regulatory reforms are effectively pushing some activity outside the banking system, making it less transparent and harder for banks to compete, said Tim Spence, the regional bank's CEO.

    By June 3, 2024
  • Senator Ron Johnson speaking behind a dais.
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    Samuel Corum via Getty Images
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    Zelle faces Senate probe on fraud

    “The scale of fraud on the Zelle platform is unacceptably high,” National Consumers League Vice President John Breyault said.

    By James Pothen • May 31, 2024
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    N26
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    N26 readies for a post-cap future

    Germany's financial regulator will drop its limit on the fintech's growth June 1. N26's CEO said the cap has cost billions in lost valuation. But its compliance systems can handle an increased load.

    By May 29, 2024
  • JPMorgan Chase CEO Jamie Dimon
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    Win McNamee / Staff via Getty Images
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    Dimon: ‘No magic formula’ on CEO, chairman moves

    The JPMorgan CEO largely pinned his future timeline on the board Wednesday during a conference appearance, while Wells Fargo CEO Charlie Scharf detailed his investment-banking growth strategy.

    By May 29, 2024
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    The image by Wichita Regional Chamber of Commerce is licensed under CC BY 2.0
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    Ex-Heartland Tri-State CEO pleads guilty to embezzling $47M in crypto

    Shan Hanes also stole money from his church and a local investment club, according to court documents. Both have since disbanded. He faces 30 years in prison.

    By May 29, 2024
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    Spencer Platt / Staff via Getty Images
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    Q&A

    How banks are employing quantum computing

    Because cyber risks are consistently top of mind for banking executives, “using quantum to fight quantum” is the most prominent application currently, said EY’s Jan Bellens.

    By May 28, 2024
  • Two people walk past a Chase bank branch.
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    Spencer Platt via Getty Images
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    JPMorgan fined by CFTC over surveillance gap probe

    JPMorgan will pay $200 million in a civil monetary penalty, with up to $100 million credited for amounts paid to the OCC and the Fed in March in parallel actions.

    By May 24, 2024
  • A building is shown with a sign that reads, "Comerica Bank" in the foreground
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    Courtesy of Comerica
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    Comerica slapped with OCC enforcement action

    The regulator discovered unsafe or unsound practices at the Dallas-based bank, including those related to its risk governance framework and internal controls.

    By May 24, 2024
  • Four people walk by a TD bank branch location
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    Joe Raedle / Staff via Getty Images
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    TD CEO: Spending on AML remediation could extend into 2025

    TD’s Bharat Masrani declined to say whether the Canadian lender expects closure this year on investigations into the bank’s AML program, citing ongoing conversations with regulators and the DOJ.

    By May 23, 2024
  • A 'Citi' sign is displayed outside Citigroup Center near Citibank headquarters in Manhattan on December 5, 2012 in New York City.
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    Mario Tama via Getty Images
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    Citi fined $78.4M over 2022 flash crash error

    A Citi trader had meant to sell a basket of equities at $58 million but mistakenly created a $444 billion basket, regulators said. About $189 billion of the trade went on the market.

    By May 22, 2024
  • Jamie Dimon speaks
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    Win McNamee / Staff via Getty Images
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    Dimon lays out ‘dark ruminations,’ swipes at regulators at investor day

    The JPMorgan CEO's retirement timeline swirled at the event, as did the bank's stance on AI, employees' well-being and cyber risk.

    By May 21, 2024