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Apple Set to Launch Consumer Savings Account
Apple will be adding a savings account to their consumer portal in the iPhone + Morgan Stanley lays off 2% of workforce
Robert Baron
December 09, 2022
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Banking News
Morgan Stanley Lays off 2% of Workforce
About 2% of Morgan Stanley’s workforce, or 1,600 jobs, were cut after leaders examined bloat since it acquired E*Trade and Eaton Vance in 2020. Morgan Stanley’s decision mirrors that of other banks – Citi, Barclays, Wells Fargo, JPMorgan Chase, and Credit Suisse have all made layoffs in 2022 to increase business efficiency. David Solomon, CEO of Goldman Sachs, spoke out:
You have to be a little more cautious with your financial resources, with your sizing and footprint of the organization… You have to assume that we have some bumpy times ahead.
Fake-Accounts Scandal Incurs Hefty Fines
Three disgraced former Wells Fargo executives have to pay fines of $18.5M due to their involvement in the 2016 scandal of creating fake bank accounts to meet hefty sales goals. Claudia Russ Anderson, David Julian, and Paul McLinko are either permanently or partially banned from the banking industry. The report by U.S. Administrative Law Judge Christopher McNeil stated that:
Three individuals separately and collectively engaged in unsafe or unsound banking practices by individually failing to identify and effectively address inadequate controls over known issues of risks related to sales goals pressure in the Community Bank
Credit Union News
Apple Set to Launch a Consumer Savings Account
With no fees, higher savings rates, and technology integration, the Apple Card may draw patrons away from other financial institutions.The card’s features include 3% back on all purchases and a high-yield savings accounts. Richard Crone, lead of Crone Consulting LLC, recommends credit unions & banks take a look at their technology offerings so they can remain competitive.
The enrollment is happening online. This should be a wake-up call for credit unions on where to increase enrollment. It’s not at a branch. It’s not on the phone.
NCUA Supervisory Powers: Regulatory Overreach or Blind Spot?
Several credit union trade groups, including the CUNA, DCUC, and NAFCU are against granting the National Credit Union Administration (NCUA) the power to supervise third-party vendors. Decisions will come to a head in the next session of Congress.
In an aggregated statement from the presidents of CUNA, NAFCU, and DCUC, they said:
The agency presently has extensive authority to request information regarding CUSOs from the credit union owners of the CUSO; and the agency has broad authority to adjust the due diligence expectations credit unions must satisfy when engaging third party vendors.
Financial Services <> Blockchain
SBF Required to Testify On FTX Collapse
Sam Bankman-Fried, troubled former CEO of cryptocurrency exchange FTX, will be subpoenaed by government officials if he declines to appear at the December 14th hearing “Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers.” Those officials, ranking member of the Senate Banking Committee Pat Toomey, R-PA, and chair Sherrod Brown, D-OH, said:
There are still significant unanswered questions about how client funds were misappropriated, how clients were blocked from withdrawing their own money, and how you orchestrated a cover-up.
Walmart to Launch All-in-One Money-management App
In 2023, Walmart will launch One, a fintech app designed to compete with existing buy-now, pay-later companies like Affirm, Klarna, and AfterPay. Officials anticipate a warm reception due to increasing inflation and more financial strain on households with incomes over six figures. The move to third-party buy-now, pay-later services has replaced normal layaway at Walmart.
