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Wells Fargo & CFPB Settlement
After investigations into Wells Fargo’s consumer lending practices and deposit accounts, the Consumer Financial Protection Bureau is has reached a settlement...
Robert Baron
November 11, 2022
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Banking News
$1B Settlement Between Wells Fargo & the CFPB
After investigations into Wells Fargo’s consumer lending practices and deposit accounts, the Consumer Financial Protection Bureau (CFPB) is expected to settle with the scandal-battered bank for up to $1B. This settlement is Wells Fargo’s third since 2016.
In March, CFPB Director Rohit Chopra spoke out against exploitative practices:
Many large institutions see the law as mere expenses on their income statement. How do we stop large, dominant firms from violating the law over and over again with seeming impunity?
U.S. Bank Employees Return to In-Person Work
An internal memo announced U.S. Bank CEO Andy Cecere’s desire to see his employees return at least 3 days/week to the office. The recommended, not mandated, transition will affect about ~35,000 hybrid workers.
It's easier to keep a pulse on how effective we are as an organization when we can see people face-to-face more regularly, and this helps us sustain our culture.
Credit Union News
Small Changes Increase Funded Loans
Credit unions don’t need to take drastic measures to fund more loans. At the 2022 CUNA Lending Council Conference in San Diego, VP of Direct Lending at America First Credit Union Kymrie Turner and Director of Sales at LSI Rob Macari, gave credit unions tips on how to do so.
Those included partnering with fintech, texting & emailing customers, improved reporting, and making funding goals.
Controversial Vermont CU Merger Complete By 2023
Members voted to merge the Vermont State Employees Credit Union and the New England Federal Credit Union with a narrow win of 51%. VSECU’s former CEO Steven Post was against the merger, preferring “a laser focus on Vermont” over a “bigger is better” mentality.
NEFCU CEO John Dwyer was in favor of the merger. He said
Being able to accomplish this merger that keeps ownership, management, and resources here in Vermont is a true testament of how the partnership embodies our local values.
Financial Services & Blockchain
Puerto Rican Bank Launches Dual-Currency Accounts
Account holders with FV Bank in Puerto Rico can manage both Bitcoin and fiat currencies in the same account. This announcement comes as the U.S. territory ups licensing requirements and attempts to reduce customer risk. Miles Paschini, FV CEO, said
Companies…need infrastructure that’s regulated and compliant. And that’s really what this is about. We’re delivering that infrastructure to the marketplace.
Upgrade Debuts High-Yield Savings Accounts
The neobanking fintech Upgrade announced 3.5% APY consumer savings accounts to work alongside its installment-loan credit card. The accounts are “swept into” community banks experiencing fewer deposits since the pandemic.
Upgrade CEO Renaud Laplanche weighed in on the decision:
We give these smaller banks and credit unions the deposits they need and our customers have benefited from it.
