Articles Tagged with ''big banks''

CFPB considers slapping Wells Fargo with more sanctions

Kraninger "not satisfied" with bank's overhaul
Late last month, Wells Fargo CEO Tim Sloan abruptly stepped down and the rumor mill churned with word that the board sent him packing because of his failure to convince lawmakers on Capitol Hill that the beleaguered bank had turned a new leaf. It appears the rumors were true. CFPB Director Kathy Kraninger announced she is unhappy with Wells Fargo's lackluster attempt to correct its risk management issues and that she is considering her options when it comes to the consequences.
Read More

Bank of America is raising its minimum wage to $20

Announces pay raise day before congressional hearing on big bank behavior
Bank of America plans to raise the minimum wage of its 205,000 employees this year, eventually boosting it to $20 per hour within the next two years. CEO Brian Moynihan said Tuesday on MSNBC that the bank will increase pay to $17 per hour starting May 1st, climbing incrementally until it lands at $20 in 2021.
Read More

Wells Fargo CEO Tim Sloan lands $2 million bonus day after congressional beatdown

Some members of Congress called for his firing, instead he got a raise
Looks like Tim Sloan's week is looking up. On Tuesday, the Wells Fargo CEO received a brutal lashing from Congress during a four-hour hearing before the House Financial Services Committee, during which he was raked over the coals for the bank's numerous misdeeds. But just a day later, the board of directors gave Sloan a 5% raise, increasing his total pay to a whopping $18.4 million, which includes a $2 million bonus.
Read More

Is Wells Fargo too big to manage? Congress grills CEO Tim Sloan

House committee roasts Sloan over progress on bank's overhaul in hostile 4-hour hearing
Wells Fargo CEO Tim Sloan appeared before the House Financial Services Committee on Tuesday to address questions regarding the bank's overhaul after a series of scandals rocked the big bank in recent years. In a tense four-hour hearing, Sloan was grilled about the steps he's taken during his two-year tenure as CEO to overhaul the bank, with the big question of the day being whether or not Wells Fargo is simply too big to manage.
Read More

S&P banks index sees best day since March

Investors anticipate positive bank earnings
The Dow Jones and S&P 500 each posted significant gains on Monday as investors prepare for the big banks to report their second quarter earnings later this week. The S&P banks index increased by 2.7%, its greatest daily increase since March 26, 2018. But this may not mean good numbers for mortgage banking revenues.
Read More

Fed looks to eliminate pass/fail for bank stress tests

To take volatility out of financial markets
The Federal Reserve is looking to take volatility out of the financial markets by changing the rules of stress tests on big banks, and eliminating the pass or fail grades. The Fed would replace the pass or fail grade with simply giving banks a capital ratio that the lender must meet during the following year.
Read More

Expert: Big banks will pass stress tests this year

To receive approval to increase shareholder dividends
As the Federal Reserve prepares to announce the results of the annual stress tests for banks in June, one expert is already predicting banks will pass. While the test might be harsher, and potential losses may increase, this expert says banks will still pass, and be allowed to raise their shareholder dividends.
Read More

Banks disappointed in proposed stress test changes

Gives relief to smaller lenders
Tuesday night, the Federal Reserve announced its proposed changes to its annual stress test procedures – and they’re not going to benefit the big banks. But smaller lenders, or those not considered “systemically important” would see a significant decrease in their capital requirements.
Read More

Big bank influence grows: The Clearing House Association merging with Financial Services Roundtable

Merger comes on heels of FSR membership shakeup
Seeking to increase the influence of the nation’s largest banks on the legislative process, two of the nation’s largest banking trading groups are joining forces. The Financial Services Roundtable and The Clearing House Association are merging, the two groups announced Tuesday.
Read More

Big banks release their hold on mortgage servicing industry

But regional bank servicers on the rise
Many of the big banks are among the nation’s top mortgage servicers by portfolio volume, however they are slowly beginning to release their hold on the market. Ongoing regulatory scrutiny is continuously pushing banks further away from servicing residential mortgage loans even as nonbanks continue to grow stronger.
Read More