Banking Risk and Regulation’s Post

💬 Banks should not have to play politics to straddle the widening cultural divide in the US, says the Office of the Comptroller of the Currency's Michael J. Hsu, as states pressurise banks to take a policy stance on issues from climate to guns. ⚖️ Hsu warns of a troubling trend where states force banks to choose sides in divisive, 'culture wars' debates, risking further fragmentation of the US financial system. 🇺🇸 States like Texas and Florida have enacted laws to block banks from cutting ties with fossil fuel companies and lawful gun dealers, pushing banks into the political crosshairs. 🛢 West Virginia and Texas have targeted banks' stance on fossil fuels while a Florida law has stopped banks from ceasing business with gun dealers for political reasons. In April, Wells Fargo shareholders voted against a proposed measure that would have forced the bank to review whether it was at risk of debanking customers for political reasons. 💡 How do you think state regulations will impact banks' ability to manage risks? Can a balance be struck between state and federal oversight? Read more below👇 https://lnkd.in/enQYt6Pz #BankingRegulation #FinancialStability #USPolitics Story by Ellesheva Kissin. Insights from Rob Nichols at the American Bankers Association, Alan Kaplinsky at Ballard Spahr LLP, Clay Lowery from the Institute of International Finance.

To ensure banks remain well-equipped to continue delivering on their important mission across the communities they serve, policymakers must work in tandem with industry to develop legislative and regulatory proposals that are rooted in sound data, rather than partisan politics. Together, we can provide practical, data-driven solutions that address the challenges we face without stifling innovation or imposing unnecessary regulatory burdens that could inadvertently debank Americans or raise the cost for essentials services. The Consumer Bankers Association’s Vision for America is intended to do just that by identifying a shared set of principles that signal an opportunity and willingness for banks to work in tandem with the next Administration on shared objectives for the American people. OurVisionForAmerica.com

Save the date! Join us for the Minorities in Banking Conference on October 2 - 3, 2024 at the Federal Reserve Bank of Cleveland. Make new connections, hear industry updates and learn diversity and inclusion strategies. For more information, visit https://bit.ly/3Sb9REe. #FederalReserve #MinoritiesInBanking #Banking #Banks #Finance #DiversityAndInclusion #MinoritiesInLeadership #Diversity #Inclusion

#Trump wins...is about time to see the future of Citigroup repeated offenses...particularly on #moneylaundering. It does not matter Citi stock this morning movements, is about that no one, even a big US Bank neither its CLevels will be above the law for next Trump Administration as moneylaundering recivist offenders, the Weight of US #law is not just for NON US Banks ( as TD Bank 3B record fined or Danske Bank 2B case ) as its moneylaundering offenses. The US law enforcement agencies and regulators will play a key role, after exemplary TD Bank 3B moneylaundering case. Is time to take appropiate and timely actions by key role actors as Financial Crimes Enforcement Network, US Treasury U.S. Department of the Treasury with #AMLA powers through its #Wistleblower Program still delayed ruling pending since was launched, U.S. Department of Justice new Wistleblower program successful, timely structured and ruled recently, U.S. Securities and Exchange Commission if Citi investors have been misleaded for years without any Citi enforcement neither no CLevels #accountability until today, after recent OCC FedReserve actions taken in Jul 2024 with 136M fine caused by Citi 2020 three consent orders 400M violated when data #risk #management failures included customers tracking funds information and #SARs #BSA #data managed innacurately and #compliance long standing failures. Reuters lately reported that Citi did not addressed sufficient and qualified staff to comply 2020 consent orders, which could make think that Citi CEO #staff cuts, supoused "Transformation Plan" firing and forced to #resign key #executives as #retaliation even top executives in charge of #Audit, Compliance, #Administration Chief Officer and Risk Management data #reports to #regulators e.g. some SOX lawsuits filled as #Wistleblowers for report that Citi had filled, reporting that Citigroup and its subsidiaries persisted in US laws violations to under consent orders even DOJ NPA in force violated. For still undisclosed reasons e.g. Citi Mexico deal exit persists delayed and that misterious #IPO-after sale abandoned by buyers-at least until end of 2025. The Mexican #peso flying close to 21 is not a positive factor on any #Mexico Citi messy previous failed deal unit developments. Yahoo Finance The Wall Street Journal Financial Times Reuters Bloomberg

Navigating Uncertainty: The Banking Industry and Trump's Undefined Policies As President Donald Trump begins his new term, a series of executive orders have marked the start of his administration. However, the banking industry is left with many unanswered questions about the future of financial regulation. The potential for deregulation could drive economic growth and increased dealmaking, which would be beneficial for investment banks. At the same time, the lack of a clear policy direction introduces considerable uncertainty. Banks are already preparing for potential changes, setting up "war rooms" to address shifts in trade and regulatory policies. Discussions about the consolidation or elimination of regulatory bodies like the FDIC could profoundly impact the industry’s stability and consumer trust. Key considerations include: Balancing economic growth with market uncertainty. Weighing regulatory freedom against the need for stability. Remaining strategically agile in a rapidly changing landscape. This moment demands that financial professionals stay informed, adaptable, and prepared to respond to evolving policies. What are your thoughts on how the industry should navigate this uncertainty? #Banking #FinancialRegulation #Leadership #Policy #EconomicGrowth

𝗕𝗶𝗴𝗴𝗲𝘀𝘁 𝗯𝗮𝗻𝗸𝘀 𝘀𝘂𝗲 𝘁𝗵𝗲 𝗙𝗲𝗱𝗲𝗿𝗮𝗹 𝗥𝗲𝘀𝗲𝗿𝘃𝗲 𝗼𝘃𝗲𝗿 𝗮𝗻𝗻𝘂𝗮𝗹 𝘀𝘁𝗿𝗲𝘀𝘀 𝘁𝗲𝘀𝘁𝘀 A group of banks and business groups are suing the Federal Reserve over the annual bank stress tests. The Bank Policy Institute, which represents big banks like JPMorgan, Citigroup and Goldman Sachs, is joining the American Bankers Association, the Ohio Bankers League, the Ohio Chamber of Commerce and the U.S. Chamber of Commerce to file the suit, which they said aims to "resolve longstanding legal violations by subjecting the stress test process to public input as required by federal law." CNBC Areeba Shaikh

Banks in America Draw Attention Amid Protectionist Policies Under Trump Administration Bank of America’s shares have surged, reaching $45.25 with an impressive 8.03% increase. This upward trend highlights the renewed investor interest in U.S. banks, likely fueled by expectations of protectionist policies under the recently elected Trump administration. A focus on domestic growth and financial security could strengthen the American banking sector. Policies supporting local financial institutions and regulations aiming to secure the U.S. financial landscape may attract more capital to major banks like Bank of America, JPMorgan Chase, and others. With this potential shift, we might see an era where U.S. banks benefit from increased support as the administration pivots towards safeguarding and growing American financial interests. #Banking #Finance #USA #TrumpAdministration #Protectionism #Investing

Republic First Bank shut down by US regulators Republic First Bank has come under scrutiny as Andy Levin, criticizes a confidential proposal by former President Donald Trump and his advisers to reorganize the Federal Reserve. Andy Levin, a former special adviser to the Federal Reserve Board, has criticized Donald Trump and his advisers for how they are allegedly planning to reorganize the Federal... Republic First Bank shut down by US regulators #AndyLevin #DonaldTrump #FederalReserve

Senator Elizabeth Warren's role as the Senate Banking Committee's ranking member has drawn criticism due to her lack of practical experience in the financial services industry or direct business ownership and management. While her academic background and consumer advocacy work have shaped her policy positions, critics argue that her absence of hands-on experience operating within the financial sector or running a business limits her understanding of the real-world complexities faced by banks, credit unions, and small business owners. This gap raises concerns about whether her regulatory approaches adequately balance consumer protection with the practical needs of businesses and financial institutions navigating an increasingly complex economic environment. https://lnkd.in/gWBW8i7M

#economics #unitedstates #federalreserve What to do with Goldman Sachs Bank? This commercial banking license which Goldman Sachs received in 2008 was gratuitous and must be revoked the Federal Reserve Board. Goldman Sachs received its commercial banking license specifically on September 21, 2008, the Federal Reserve approved the company's request to convert into a bank holding company, which allowed it to gain a commercial banking license. This move was pivotal for Goldman Sachs, as it enabled the firm to access emergency funding from the Federal Reserve and benefit from more stable sources of capital, even as it committed white collar fraud during the housing crisis. This transition marked a significant shift for Goldman Sachs, which had previously operated as an investment bank. By becoming a bank holding company, Goldman Sachs was subject to stricter regulation and oversight, similar to that imposed on traditional commercial banks. The commercial banking license for Goldman Sachs, granted in 2008, would have been approved by the Federal Reserve, specifically under the leadership of Ben Bernanke, who was the Chairman of the Federal Reserve at the time. While individual signatures on such licenses are not typically publicized, the formal approval process involved the Federal Reserve Board, and any associated documents would have been signed by the appropriate representatives from the Federal Reserve responsible for processing and approving banking licenses. The key figure behind the decision was Ben Bernanke, given his role in overseeing the Federal Reserve during that period. Goldman Sachs is an unethical bank which routinely commits white collar crimes globally and must be shut down both as a Fed primary dealer and as a multinational corporation. © 2024 tamirisa.com TAMIRISA