In November's roundup of top banking news, an in-depth analysis of the numerous missteps casting doubt on the reputation of USAA, the Consumer Financial Protection Bureau continues to crack down on banks and other financial institutions in the face of its uncertain future, predictions for President-elect Donald Trump's impact on the banking industry and more.
'Fundamental breakdown': How USAA landed in regulators' hot seat
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This article has been co-published with the San Antonio Current.
Few companies can match USAA's stellar reputation, gained over a century of offering financial products to military members. But behind the scenes, the San Antonio bank and insurer is navigating a minefield of its own making.
USAA's banking arm has grown its customer base for years, all while failing to make the investments needed to keep both its regulators and some decades-long customers happy, according to a joint investigation by American Banker and the San Antonio Current.
A series of regulatory penalties hasn't sparked enough internal change. Neither has the reshuffling of key leaders, the latest move being the upcoming retirement of CEO Wayne Peacock. Another problem: nonexistent profits at USAA's bank, which has turned to layoffs to cut costs.
Trump wins presidency, ushering an era of less regulation for banks
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Donald Trump was elected the president of the United States. Trump put up a strong showing on Nov. 5, gaining ground in nearly all corners of the country. He claimed Georgia, Pennsylvania and Wisconsin, all swing states he lost in 2020.
"We overcame obstacles that nobody thought possible," Trump said in his victory speech in West Palm Beach, Fla.
Changes coming to the Fed in a Trump presidency
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Donald Trump's
At a minimum, Trump will have the opportunity to appoint two governors to the board during the coming four years and determine the leadership of the body. He also suggested he would attempt to
And, in the waning weeks of the campaign, reports surfaced that Trump could
Trump will change the CFPB's course — but how much is unclear
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With President-elect Donald Trump's
But some observers say that, while the next administration will certainly change the agency's trajectory, those modifications may be more limited in their scope than the bureau's most ardent opponents would prefer.
Richard Horn, co-managing partner of Garris Horn and a former senior counsel and special advisor at the CFPB, said the appointment of noted CFPB critic Mick Mulvaney as acting director in President Trump's first term was a signal that the administration intended to handcuff the agency from doing anything of consequence. But instead of appointing Mulvaney or someone similarly aligned as the permanent director, the administration instead appointed Kathy Kraninger, who cut a more moderate path at the agency.
Republicans to Visa and Mastercard: Figure it out, or we will
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Lawmakers on both sides of the aisle pressed executives from Visa and Mastercard on the cost of so-called swipe fees to small businesses and consumers.
Notably, Republican lawmakers — who will have full control of the White House and Congress for the next two years — signaled openness to
The legislation is currently cosponsored
After Okla. bank failure, Chopra calls for expanded deposit insurance
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Consumer Financial Protection Bureau Director Rohit Chopra is asking Congress to reconsider deposit insurance limits after the
The tiny First National Bank of Lindsay in Oklahoma was shuttered in October after the Office of the Comptroller of the Currency found "false and deceptive bank records and other information suggesting fraud." At the time, the Federal Deposit Insurance Corp. said that it would make 50% of uninsured funds available to depositors.
This puts the failure of this small bank in sharp contrast with the much larger Silicon Valley Bank and Signature Bank, which failed last year. Regulators at that point announced a systemic risk exception, which means that many of the large companies with uninsured deposits at those institutions were able to access their money in full.
How CFPB is cracking down on banks before Trump takes office
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In the wake of President-elect Donald Trump's
When CFPB Director Rohit Chopra
Former Sen. Pat Toomey, R-Pa., then-ranking member of the Senate Banking Committee, said Chopra would return the CFPB to "the rogue, unaccountable, anti-business agency that it was during the Obama administration."
Trump win likely to delay Basel III, imperil Biden bank regulation
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The incoming Trump administration is likely to lead to swift turnover at bank regulatory agencies, which would push finalization of
As president, Donald Trump has the ability to fire the leaders of the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau and appoint other financial regulatory heads when their terms expire. In his previous term, President Trump had a penchant for reducing regulation and initially tapped a CFPB director who sought to
All of this suggests the Federal Reserve's capital plan — known as the Basel III endgame — won't be implemented soon.
Trump's FDIC has work cut out for it in repairing culture
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After months of
Current FDIC Vice Chairman Travis Hill and Board Director Jonathan McKernan — both Republicans — have long called for fast-tracking measures to promote accountability and replace agency leadership after a report by law firm Cleary Gottlieb in April found pervasive instances of sexual misconduct and a retaliatory culture at the agency.
McKernan said in an interview he believes it is time to turn the page on FDIC leadership.
Congress turns back to banking in Trump's Washington
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A quiet few years for bankers on the legislative front could be over under a second term of President-elect Donald Trump, experts said.
And the rules made in Congress in the next few years might not be what bankers are used to under a Republican-controlled government. A new vein of populist Republican lawmakers may find common ground with progressive Democrats who are looking to appeal to economically disaffected voters who didn't show up for them this election cycle.
Specifically, experts are looking at an unlikely power duo made up of Sens. Tim Scott, R-S.C., and Elizabeth Warren, D-Mass., atop of the Senate Banking Committee as an example of what new Washington policymaking on banking issues could resemble.
