President Donald Trump signed a congressional resolution Monday to overturn Consumer Financial Protection Bureau guidance from 2013 meant to prevent discriminatory markups in auto lending. CFPB acting Director Mick Mulvaney thanked Trump in a statement and said the bureau might submit other policies for congressional review.
Many companies are victims of data breaches long before they realize it, as hackers tend to spend months monitoring employee activity before acting, IT security executive Eric Carter of NorthMarq Capital said in a recent panel discussion. Michael Kenney of Freddie Mac said bigger companies are at the greatest risk, adding that the best defense begins with a culture of cybersecurity.
GreenSky is to price its initial public offering this week, looking to raise $700 million. Most of GreenSky's customers are sourced from partner merchants such as Home Depot, and the majority of its loans are funded with bank capital.
The House is expected to vote today on Senate-approved legislation that would roll back certain Dodd-Frank Act regulations, reducing the number of banks subject to stress tests to 12. Small banks would see lower capital requirements and shorter required financial reports.
The Federal Reserve should maintain a neutral policy until the US sees wage growth and maximum employment, writes Neel Kashkari, president of the Federal Reserve Bank of Minneapolis. Runaway inflation, which was predicted by some economists, has not happened, and both wage growth and inflation are at surprisingly low levels, he writes.
The US is near the Federal Reserve's target employment and inflation numbers, says Raphael Bostic, president of the Federal Reserve Bank of Atlanta. Bostic said he would support two more interest-rate increases this year.
Wells Fargo will increase its auto lending after having pulled back in mid-2017, CEO Tim Sloan said. Company culture is "fundamentally fine," and the bank is focusing on improving processes and internal systems, he said.
The Consumer Financial Protection Bureau will re-examine enforcement of the Equal Credit Opportunity Act, acting Director Mick Mulvaney says. In addition, all past guidance approved by the CFPB will be sent to Congress for review, Mulvaney says.
Mick Mulvaney must leave as acting director of the Consumer Protection Financial Bureau next month unless President Donald Trump nominates someone to be the permanent director. If someone is nominated, Mulvaney can stay until the nominee is confirmed or rejected by the Senate.
Banks are facing increased competitive pressure for business and commercial loans from hedge funds, insurance companies and private equity firms. These nonbanks are less regulated than banks and in many cases are offering longer repayment terms with relaxed requirements.
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