The Latest
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Merrill Lynch to pay $20M to settle racial discrimination case
Four ex-Merrill advisers and more than 1,000 class-action participants allege Merrill has not afforded Black advisers the same opportunities as their White counterparts. Merrill denies these claims.
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Goldman alum Beth Hammack named Cleveland Fed’s next president
Hammack, once considered a CFO contender at Goldman, left the bank in February after 30 years. She replaces Loretta Mester, whose term ends June 30.
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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.
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Fintech Copper burned by Synapse collapse
The teen-focused fintech had to shut down its bank deposit accounts and debit cards mid-month — an earlier wind-down than expected due to turmoil experienced by its middleware provider, Synapse.
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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.
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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.
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Former FTX exec Ryan Salame sentenced to 7½ years
He originally faced up to 10 years in prison, following guilty pleas to two counts in September. Prosecutors, however, suggested he serve five to seven years.
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FDIC failed to timely report misconduct allegations, IG says
The White House could tap a nominee to lead the agency this week — and reportedly has a front-runner. Meanwhile, outgoing agency Chair Martin Gruenberg is set to testify on Capitol Hill again June 12.
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Trades shift to one-day settlement
The shift to T+1, a settlement cycle in which transactions settle one business day after they're made, has been in the works since the SEC approved it in February 2023. Trades haven’t settled that quickly since the 1920s.
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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.
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JPMorgan ramps up prompt engineering training, AI projects
The bank estimates its AI use cases can deliver up to $1.5 billion in value, President Daniel Pinto said.
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Paze targets nationwide coverage by year-end shopping season
The big bank-backed digital wallet is now accepted by about 80,000 “primarily small” merchants, according to James Anderson, managing director at Early Warning Services.
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UBS looks internally for Ermotti’s successor: report
The Swiss banking giant plans to disclose the names of three potential CEO successors as early as next year, the Financial Times reported Monday. Sergio Ermotti expects to step down once the UBS-Credit Suisse integration is complete.
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Column
Dive Deposits: Return-to-office bank edicts may cancel summer before it even starts
FINRA’s COVID-era policies easing banks’ requirement to monitor workplaces are ending. That’s prompting Citi, HSBC, Barclays and others to prod thousands back to the office.
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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.
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Small bank receives rare conditional Fed master account approval
Numisma Bank, a tier 3 uninsured bank co-founded by a former Fed official, is on track to receive the benefits of a master account. Caitlin Long, CEO of tier 3 Custodia Bank, has questions.
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Gesa Credit Union to buy Washington bank
The transaction, expected to close next year, marks the fourth time a credit union has moved on an Evergreen State bank this year. The purchase price was not disclosed.
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Walmart and Capital One break up
The retail behemoth and its credit card issuer said in a terse, joint press release Friday that they’re parting ways.
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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.
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Ex-Citi employee was fired for refusing to fudge data to OCC, she says
Kathleen Martin said the pressure came from Anand Selva "almost as soon as he got promoted" to chief operating officer last year. The bank denies the allegations.
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Gorman to step down as Morgan Stanley board chair
The ex-CEO's departure at year end could be seen as a vote of confidence in his successor, Ted Pick. The bank held its annual general meeting Thursday.
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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.
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Bank of America vet hired to lead diversity efforts at Apple
Cynthia Bowman, a 17-year alum of the U.S.'s second-largest bank, will replace Barbara Whye, who is retiring this fall, Apple said.
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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.
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JPMorgan shareholders veto proposal to split CEO, chair duties
Still, the measure garnered support from 42.7% of voters — notably more than the 33% and 31% of Goldman Sachs and Bank of America shareholders, respectively, that backed similar proposals this year.