Wells' OCC tipoff, crime-fighting AI and HSBC's mortgage play: Top stories of the week

March 16, 2018 3:39 PM

Wells Fargo gets tipped off by OCC on investigation; HSBC is wading back into U.S. mortgage waters; a bank uses artificial intelligence to combat money laundering; and more.

A Wells Fargo & Co. sign sits on display outside the company's offices in San Francisco, California, U.S., on Tuesday, April 27, 2010. Wells Fargo & Co., the fourth-largest U.S. bank by assets and deposits, may raise its dividend once capital levels satisfy regulators and if the economic recovery continues, said Chief Executive Officer John Stumpf. Photographer: David Paul Morris/Bloomberg

David Paul Morris/Bloomberg

Wells was tipped off to government probe by OCC, watchdog says

The top examiner of Wells Fargo at the Office of the Comptroller of the Currency improperly revealed to the San Francisco bank the existence of a government investigation, according to the Treasury's inspector general.

(Full story here.)

Nandita Bakhshi, President and CEO of Bank of the West (left), and Bruce Van Saun, Chairman and CEO of Citizens Financial Group.

Bankers aren't waiting for Amazon 'to come eat our lunch'

The online giant has succeeded in disrupting every area of retail, but in banking it faces a high barrier to entry and fierce determination from banks like Citizens Financial and Bank of the West to keep upping their games.

(Full story here.)

Pie chart of loan segments at HSBC North America at Dec. 31, 2017

Why HSBC is getting back into mortgages

Despite past missteps in the U.S. mortgage business, the bank is giving it another go, bringing servicing in-house and catering to millennials and international clients here, says HSBC's Raman Muralidharan.

(Full story here.)

Graphic showing number of deposit special promotions in 6 cities

Megabanks gird for battle over deposit pricing

With rate hikes aplenty expected this year, Wells Fargo and Bank of America are said to be subdividing key markets to target deposit pricing in the future and minimize costs. These are among several innovative steps large banks are taking to prepare for more competition for deposits.

(Full story here.)

Sen. Mike Crapo, chairman of the Senate Banking Committee, and ranking member Sen. Sherrod Brown.

Senator Mike Crapo, a Republican from Idaho and chairman of the Senate Banking Committee, left, and ranking member Senator Sherrod Brown, a Democrat from Ohio, arrive to a hearing on the Equifax Inc. cybersecurity breach in Washington, D.C., U.S., on Wednesday, Oct. 4, 2017. Lawmakers grilled former Equifax Chief Executive Officer Richard Smith on Tuesday after hackers attacked the company's systems and got access to sensitive information for 145.5 million Americans. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

5 questions as Dodd-Frank reform moves closer to becoming law

With the Senate finishing its work on a regulatory relief package, a showdown in the House still looms while critics of Dodd-Frank weigh whether this is their last shot at unwinding it.

(Full story here.)

The Marriner S. Eccles Federal Reserve building stands in Washington, D.C., U.S., on Friday, Nov. 17, 2017. Federal Reserve officials reinforced expectations this month for a December interest-rate increase by subtly upgrading their assessment of the U.S. economy. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

Bank regulators vow more flexibility in vetting fintech partnerships

Senior leaders at the Federal Reserve, the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau said they want examiners to be more understanding of the budding partnerships forming between banks and fintech firms.

(Full story here.)

AI as new tool in banks' crime-fighting bag?

OCBC Bank in Singapore has seen a 35% reduction in false positives in its tests of artificial intelligence-based anti-money-laundering software. Other banks could follow its lead, though there are regulatory and customer-protection questions.

(Full story here.)

What's driving surge in sales of larger community banks

Limited organic growth opportunities and rising premiums for bigger deals are fueling more sales of banks with $1 billion to $10 billion in assets.

(Full story here.)

Concept of Approved mortgage application form lay down on wooden desk with rubber stamp and calculator.

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Will HMDA data carve-out for small banks make discrimination easier?

Community banks and consumer advocates are clashing over a provision in the Senate banking bill on mortgage data reporting, but there's been little vetting of what the measure would actually do.

(Full story here.)

Banks wrestle with sense of futility on sexual harassment

Scratch beneath the surface, and there is a lingering feeling among many in the banking, payments and mortgage sectors that not only is harassment present, but it may actually be inevitable. Experts say institutions need to combat that mindset — or else.

(Full story here.)