You wouldn't believe it from many of the recent headlines, but new reports show that, overall, deposits at U.S. publicly traded banks rose 0.1% during the first quarter. And, as we recently mentioned, results of IntraFi's most recent quarterly survey of nearly 300 U.S. bank executives revealed that most banks didn't experience significant outflows following the collapse of SVB and Signature banks.
A new proposal from the FDIC would have 113 big banks and regional lenders paying up to replenish the FDIC's insurance fund. The proposal asks the largest banks – those with total assets over $50 billion — to pay more than 95% of the special assessment.
Regulators are expected to raise capital requirements by as much as 20%, make stress tests more stringent, and change accounting rules for government securities, following Jaime Dimon’s purchase of First Republic.
Analysts and bank execs believe the changes will result in more consolidation among regional institutions, even tighter credit, and more nonbank lending. Much of the blame for SVB's collapse in particular has been pinned on advances in technology and innovation.
A group of Democratic lawmakers wrote to the executives of credit card issuers, demanding information about late fees and costs and noting that numerous banks have cut overdraft fees without creating additional costs for consumers. "How do you reconcile this with the lobby's argument that consumers will pay the price for limited late fees?" the lawmakers asked.
The letter comes as the comment period on a CFPB proposal to cut late fees to $8 winds down and amid the Biden administration's general campaign against what it calls "junk fees."
A planned merger between West Virginia-based MVB Financial and North Carolina-based Integrated Financial Holdings was called off due to regulatory delays and economic challenges, American Banker reported. It's the second bank merger to be scrapped in as many weeks.
The Consumer Financial Protection Bureau said in a recently-released policy statement that banks risk violating the prohibition on "unfair acts and practices," by reopening a consumer's deposit account to process transactions after the account has already been closed. Some consumers have complained to the CFPB that their bank reopened an account and charged overdraft, nonsufficient funds and maintenance fees after the account had already been closed.
The Fed is highly concerned about banking stress, a credit crunch, inflation, and commercial real estate, according to its financial stability report released earlier this week.
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