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Regulators Halt Banking as a Service
New banking model has come under the scrutinizing eye of the Office of the Comptroller.
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Banking News
Downsizing Imminent at Credit Suisse
A costly reorganization is in store for the Swiss bank, including replacement of investment-banking chief Christian Meissner, a cut of 9k jobs, and splits to reduce risk-weighted assets. The price tag: $2.9B over two years.
Leading Investment Banks Anticipate U.S. Recession
As the Fed continues on an aggressive path of tightening monetary policy, CEOs of both Goldman Sachs and JPMorgan are looking ahead to interest rates upwards of 4.5%. David Solomon, CEO of Goldman Sachs, was on a panel at the Future Initiative Investment conference, where he opined:
When you find yourself in an economic scenario like this where inflation is embedded, it is very hard to get out of it without a real economic slowdown.
Credit Union News
Credit Unions Grow Despite Digital Limitations
The World Council of Credit Unions (WOCCU) released the 2021 Statistical Report, detailing current membership trends, priorities, and risks. Primary concerns included digitalization, regulatory reform, and improving payment system access in Latin America and Africa.
Unfair “Junk Fees” Violate Consumer Financial Protection Act
Credit unions reacted with surprise after the Consumer Financial Protection Bureau (CFPB) decried “certain financial service fees as ‘junk fees,” according to Jim Nussle, CEO and President of the Credit Union National Association. The White House targeted banks’ $15.5B revenue (2019) in overdraft fees, stating:
surprise termination and cancellation fees can harm free and fair competition….reducing market dynamism.
Financial Services & Blockchain
Regulators Plan to Rein in Banking-as-a-Service
The BaaS model will soon come under the scrutinizing eye of the Office of the Comptroller of the Currency (OCC). Acting OCC comptroller Michael Hsu says regulation will clarify who’s responsible when things go wrong and stabilize rapidly-accelerating growth.
Look, bank-fintech partnerships, they're here to stay. I'm not trying to do away with them. This is the future, so let's do the future right.
Bitcoin Recovery Continues Despite Lackluster October
While Bitcoin remains above $20,000, welcome news after June’s crash, October remained a slow month for the digital token. Daily trading was “a record low…across all digital asset investment products.” CryptoCompare's report indicated daily trading volumes have declined since November 2021, falling 34.1%.
This paints a bleak picture for crypto-based institutional products, as the macroeconomic climate still possesses much uncertainty.
Market Movements (10.24 - 10.28)
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