Financials archive - The Capitol Forum

Financials Friday: BNPL Industry Has Mixed Response to New CFPB Regulation; Lawsuits Loom Over Fed’s New Debit Interchange Fee Cap; Synapse Collapse, Frozen Fintech Accounts Mark ‘Watershed’ Moment for BAAS; FDIC Chairman to Step Down; OCC Issues Enforcement Action Against Comerica Bank & Trust

Buy now, pay later industry issues mixed responses to new CFPB regulation. The buy now, pay later (BNPL) industry is issuing responses ranging from outright criticism to muted support for a new interpretive rule by the Consumer Financial Protection Bureau (CFPB) that will regulate these...

May 24, 2024 Read Now >

Financials Friday: Supreme Court Upholds CFPB Funding Structure—Cases Against Credit Acceptance Corp, MoneyLion in Focus; Future Uncertain for Bank Capital Overhaul Before Election; Title Insurance Mobilizes to Oppose White House on Fees

Supreme Court upholds CFPB funding structure—cases against Credit Acceptance Corp, MoneyLion in focus. The Supreme Court ruled Thursday that the funding structure of the Consumer Financial Protection Bureau (CFPB) is constitutional, delivering a win for the Biden administration’s...

May 17, 2024 Read Now >

MoneyLion: Dark Patterns in the MoneyLion Mobile App Appear to Steer Customers Into Tipping and Paying Fees That are Critical to Company’s Growth

MoneyLion (ML), a nonbank financial technology company that offers payday advances, appears to deploy manipulative design techniques in the company’s mobile app to steer consumers into paying optional fees and tips that may not be in their best interest, a Capitol Forum investigation...

May 10, 2024 Read Now >

MoneyLion: Former Company Employees Describe Culture of Weak Fraud Controls

MoneyLion (ML), a nonbank financial technology company, did not prioritize fraud control and compliance with banking laws and regulations, according to five former MoneyLion employees who spoke with The Capitol...

Apr 29, 2024 Read Now >

Financials Antitrust Weekly: Huntington Bank Investigated on Possible Redlining; Congress Focuses on Mandatory Arbitration and Service Member Rights, Consumer Legislation Advances; OCC Discloses Enforcement Actions

Huntington Bank subject of OCC redlining probe. Huntington Bancshares (HBAN) is under investigation by the Office of the Comptroller of the Currency (OCC) for possible fair housing “redlining”...

Apr 19, 2024 Read Now >

Antitrust Financials Friday: Realtors Hope DOJ Won’t Intervene in Settlement; House Financial Services to Mark Up EWA Bill; Republicans Challenge CFPB Credit Card Late Fee Rule; Chamber of Commerce v. CFPB

Focus on DOJ in NAR broker fee litigation. All eyes in the real estate industry are on the DOJ and whether it will bless or object to the massive National Association of Realtors (NAR) settlement that would permanently reshape broker compensation. DOJ is now freer to intervene in the...

Apr 12, 2024 Read Now >

Globe Life: Unfair Labor Practice Charge Filed Against Subsidiary American Income Life; Worker Alleges AIL Forced Ineffectual Union Membership on Independent Contractors

A sales agent at insurance giant Globe Life (GL) subsidiary American Income Life Insurance Company (AIL) filed an unfair labor practice charge with the National Labor Relations Board (NLRB) today, alleging AIL retaliated against the worker for discussing their pay and working conditions,...

Apr 04, 2024 Read Now >

Capital One/Discover: Merger Application Ignores Biggest Competition Risks, Antitrust Advocates Say

Capital One’s (COF) application laying out its $35.3 billion plan to buy Discover Financial (DFS) overlooks some of the risks that Biden administration regulators are most likely to scrutinize, antitrust advocates...

Mar 28, 2024 Read Now >

Globe Life: Agency Salespeople Are Likely Misclassified; Arbitration Provisions Obstruct Employees’ Access to Courts

Thousands of salespeople at agencies under American Income Life Insurance Company (AIL), a subsidiary of insurance giant Globe Life, Inc. (GL), are likely misclassified as independent contractors—denying them minimum wage, overtime, and a host of other benefits—employment law experts...

Mar 26, 2024 Read Now >

Capital One/Discover: Deal to Test OCC’s Growth Restrictions on Banks with Multiple Enforcement Actions

Capital One’s (COF) plan to acquire Discover Financial (DFS) will test whether a key regulator is committed to its policy to restrict banks that have faced multiple disciplinary actions from expanding, in light of large penalties levied against Capital One in recent...

Mar 06, 2024 Read Now >

TD Bank/First Horizon: Buyer Knew It Faced a Serious Money-Laundering Probe Months Before Deal Collapsed

Executives at Toronto-Dominion Bank (TD) knew of a DOJ anti-money laundering investigation more than six months before the company publicly disclosed the probe, which ended up scuttling their proposed $13.4 billion buyout of First Horizon Bank (FHN) last year, sources familiar with the...

Jan 08, 2024 Read Now >

PNC CEO Demchak Eyes KeyBank, Comerica, Others For Possible Purchase, Seeks DOJ Input

PNC Financial Services Group (PNC) CEO Bill Demchak is considering a possible acquisition of KeyBank (KEY) or Comerica (CMA), among others, balancing the drive to grow his company with an awareness of heightened government antitrust concerns over the financial sector’s consolidation,...

Dec 04, 2023 Read Now >

Citigroup: DOJ Investigating Possible Race Discrimination in Mortgage Lending

The Department of Justice is looking at whether Citigroup (C) discriminated against Black and Hispanic homebuyers in recent years, at a time when the nation’s third-largest bank was struggling to satisfy federal banking rules, according to sources familiar with the matter. A national...

Jul 21, 2023 Read Now >

Prospects Brighten for Broadcom/VMware, ICE/Black Knight, L3Harris/Aerojet Following Recent Developments

The prospects for Broadcom’s (AVGO) proposed VMware (VMW) buyout, Intercontinental Exchange’s (ICE) attempted Black Knight (BKI) purchase and L3Harris Technologies’ (LHX) bid for Aerojet Rocketdyne have distinctly improved due to a series of recent, unrelated developments, according...

Jul 20, 2023 Read Now >

FirstEnergy Expected to be Removed from MSCI ESG Indexes at Next Rebalancing

On August 31, the Deka Group expects its ESG ETFs to drop FirstEnergy (FE) following an index rebalancing by MSCI (MSCI), according to a statement made to The Capitol Forum by a Deka spokesperson. The Capitol Forum first reported in June that FirstEnergy would be dropped from numerous...

Jul 18, 2023 Read Now >

At least 18 Indexes Likely to Drop FirstEnergy at Next Redetermination as ESG Concerns Snowball

Index providers S&P Global (SPGI), MSCI (MSCI) and the London Stock Exchange Group’s (LSE) FTSE Russell are likely poised to remove FirstEnergy (FE) from at least 18 of their ESG indices after their next quarterly redetermination, according to a Capitol Forum investigation. Over a...

Jun 21, 2023 Read Now >

FleetCor: As Parties Await Terms of Court Order on Scope of Injunctive Relief Problematic Billing and Fee Practices Appear to Persist

Despite publicly professing a desire to cooperate with the FTC and revise certain billing practices, FleetCor Technologies’ (FLT) problematic billing and fee practices appear to continue, according to The Capitol Forum’s ongoing investigation into the company. At issue are the...

Jun 02, 2023 Read Now >

TD Bank/First Horizon: CEO Met With Top Bank Examiner Days After Deal Delay Announced, Document Shows

Days after the head of Toronto-Dominion Bank (TD) declared he was “fully committed” to his company’s proposed acquisition of First Horizon Bank (FHN), he met with senior officials of one U.S. regulator that will decide whether the $13.4 billion deal goes ahead, according to an...

May 04, 2023 Read Now >

CFPB March Complaint Data: Total Monthly Complaints Hit 12 Month High as Bureau’s Policy Statement on Abusive Acts or Practices Appears to Signal Paradigm Shift, Prioritizing Fair Dealing Over Consumer Sovereignty

Total monthly complaints submitted by consumers to the CFPB rose to 112,600 in March 2023, reflecting an approximately 30% increase from February and the highest total number of complaints over the past twelve-month period, as measured by The Capitol Forum. The categories with the largest...

Apr 20, 2023 Read Now >

As Private Equity Firms Work to Access 401(k) Market, Plaintiff Lawyers Gear Up to Sue

Seeing a green light from the Department of Labor, private equity firms are developing new investment products they hope will achieve their longtime goal of accessing the lucrative $7 trillion 401(k) market, industry experts tell The Capitol Forum. Private equity funds have historically...

Apr 10, 2023 Read Now >

TD Bank/First Horizon: DOJ Probe Holds Up Regulators’ Decisions On Deal

U.S. financial regulators’ decisions on TD Bank’s (TD) proposed $13.4 billion acquisition of First Horizon Bank (FHN) are being held up by issues raised in a DOJ investigation, a source familiar with the matter said. It’s unclear what the focus of the DOJ investigation is and how...

Mar 29, 2023 Read Now >

The Antitrust Agenda: What UBS Buying Credit Suisse Means for Bank Merger Reviews; Timing of Draft Merger Guidelines

UBS’s takeover of Credit Suisse, announced yesterday, is clearly at odds with the Biden administration’s whole-of-government approach to enforcing competition policy. The merger combines a formerly top 10 bank with its Swiss rival – an outcome that would have been unthinkable from a...

Mar 21, 2023 Read Now >

FleetCor: Company and FTC Unable to Come to Agreement on Injunctive Relief Order; Judge Asks Parties to Answer Questions Ahead of Potentially Issuing Order

After initially trying to get the Federal Trade Commission and FleetCor (FLT) to reach an amicable decision on the scope of an order for permanent injunction and other relief, federal district court judge Amy Totenberg may be forced to issue an order, as the parties appear to remain far...

Feb 22, 2023 Read Now >

Flagstar Bancorp/New York Community Bancorp: When FDIC Rebuffed Merger Bid, Banks Restructured Deal So OCC Would Review It

Federal Deposit Insurance Corporation (FDIC) staff members were so concerned about fair lending failings at Flagstar Bancorp (FBC) that they told executives at New York Community Bancorp (NYCB) that they wouldn’t support their proposed $2.6 billion acquisition of the company, according...

Oct 18, 2022 Read Now >

CFPB September Complaint Data: Credit Acceptance Sees 8% Month-Over-Month Increase in Complaints, Some Complaints Allege Potential Violations of SCRA; ENOVA Sees a Number of Complaints and Recent California Decision Could Negatively Affect Business

The information contained in this report is compiled from the CFPB’s publicly available complaint data. The agency uses complaint information to monitor risk in financial markets, assess risk at companies, and prioritize agency action. The Capitol Forum’s compilation of the data also...

Oct 13, 2022 Read Now >

JPMorgan Chase Avoided Public Punishment From CFPB Under Trump After Discovery of Alleged Fake Accounts

JPMorgan Chase Bank (JPM) avoided public sanctions during the Trump administration for allegedly creating fake accounts when the Consumer Financial Protection Bureau (CFPB) opted to quietly close the matter instead, according to sources familiar with the matter, adding yet another major...

Aug 10, 2022 Read Now >

FirstCash: California Regulator Takes Action Against Four Technologies for Operating Without License; Levitin Opines that California Retail Installment Sales Agreements Resemble Direct Loans and Loans are Unconscionable

American First Finance, a point-of-sale consumer finance and rent-to-own company recently acquired by payday lender FirstCash (FCFS), operates in California without a nonbank lending license because the company has determined its retail sales installment agreements do not constitute a...

Aug 08, 2022 Read Now >

Illumina/Grail: EC Probe Set to Resume With New Remedy Offer On Table

The European Commission is set to resume its in-depth probe of Illumina’s (ILMN) takeover of cancer-detection test maker Grail in short order, with the Brussels-based regulator expected to seek third-party feedback on a revised set of concessions offered by Illumina, The Capitol Forum...

Jul 19, 2022 Read Now >

TD Bank/First Horizon: Trump CFPB Opted Not to Punish TD Auto Finance Subsidiary Following Years-long Investigation

The Consumer Financial Protection Bureau (CFPB) during the Trump administration decided not to punish TD Auto Finance, a subsidiary of TD Bank (TD), following a years-long investigation into TD Auto Finance, according to an agency document and sources familiar with the matter. The CFPB...

Jul 08, 2022 Read Now >

FirstCash: Financing Practices of American First Finance Subsidiary Could Draw Scrutiny from Democratic Majority FTC, Expanded Ongoing State AG Investigation

The financing practices of American First Finance (AFF), a subsidiary of pawn shop operator FirstCash, Inc. (FCFS), could draw the scrutiny of the Federal Trade Commission and state attorneys general, according to an investigation by The Capitol Forum. AFF specializes in point-of-sale...

Jun 01, 2022 Read Now >

TD Bank/First Horizon: Faulty Accounts Didn’t Draw Fines From Trump Officials; Workers Say Suspect Practices Persist As Deal Approvals Sought

Despite finding TD Bank (TD) wrongly pressured customers into opening accounts and using banking services they didn’t want, a leading bank regulator during the Trump administration opted to give the company a private reprimand rather than a fine for the abuses, according to sources...

May 04, 2022 Read Now >

Upstart: Seemingly Important Upstart Accounting Change Made Public via KBRA Pre-sale Securitization Report; Expert Says Accounting Change Likely to Be Mentioned in Upcoming 10-Q

Upstart amended loan modification program in April. According to a new KBRA pre-sale report on Upstart’s (UPST) structured pass through trust series 2022-2a, “In April 2022, Upstart amended its CRB and FinWise loan modification policies. Under the new policy, borrowers that have...

Apr 27, 2022 Read Now >

Blue Ridge/FVCBankcorp: U.S. Regulators Investigate Blue Ridge for Lending Abuses, Casting Shadow Over Proposed Tie-up

Federal bank regulators are examining whether Blue Ridge Bank (BRBS) discriminated against minorities in its mortgage lending business, in an investigation that could stall or even upend the bank’s proposed merger with FVCBankcorp (FVCB), sources familiar with the probe said. Blue...

Jan 13, 2022 Read Now >

U.S. Bank Regulators Seek to Police Cryptocurrency With Existing Powers, Officials Say

Federal officials concerned that the cryptocurrency industry needs urgent oversight are developing plans to let banking regulators use their existing powers to examine crypto companies when they partner with traditional banks, according to financial and regulatory sources familiar with...

Dec 17, 2021 Read Now >

Facebook Ignores Pleas on Fair Lending Rules, Unnerving Financial Services Execs

Facebook parent Meta Platforms (FB) is refusing to guarantee that its advertising algorithms comply with U.S. rules on fair lending, leaving banks and other financial service providers worried that the social media giant could expose them to fines and hits to their reputations, executives...

Dec 10, 2021 Read Now >

S&P Global, Nvidia, Microsoft Reviews to Provide Insight Into EC, CMA Regulatory Approaches

European Commission and UK Competition and Markets Authority case handlers are grappling with parallel merger investigations into S&P Global’s (SPGI) acquisition of fellow financial data provider IHS Markit (INFO), Nvidia’s (NVDA) purchase of British chip designer Arm Holdings and...

Oct 13, 2021 Read Now >

Credit Acceptance Corporation: Company Required to Alter Some Business Practices in State; Settlement Could Serve as Template for Other Investigations

Months after announcing an agreement in principle, the Massachusetts Attorney General and Credit Acceptance Corporation (CACC) settled the Attorney General’s lawsuit regarding the company’s business practices in Massachusetts. The company has agreed to pay $27.2 million to an...

Sep 21, 2021 Read Now >

S&P Global/IHS Markit: Companies Don’t Anticipate Additional Behavioral, Structural Remedies

S&P Global (SPGI) and IHS Markit (INFO) don’t anticipate offering remedies beyond the divestiture of businesses they’ve already proposed selling to News Corp. (NWSA) to secure competition approvals for their $44 billion transaction, The Capitol Forum has learned. The companies...

Sep 16, 2021 Read Now >

S&P Global/IHS Markit: DOJ Staff Leans Toward Recommending Clearance With Divestiture

DOJ staff is leaning toward recommending that department leadership clear S&P Global’s (SPGI) $44 billion bid for IHS Markit (INFO) now that the financial data service companies have lined up News Corp. (NWSA) as the divestiture buyer for IHS Markit’s energy pricing service,...

Sep 13, 2021 Read Now >

For health-related articles; image of pen and stethoscope

Eargo: Advertised 0% Financing Through Ally is Likely Misleading, According to Consumer Finance Experts; Customers Say Company Does Not Honor 45-Day Risk Free Trials

Eargo (EAR), a manufacturer of completely-in-canal (CIC) hearing aids, promises customers a 45-day risk-free trial period as well as offering up to 0% interest financing for its hearing aids. A Capitol Forum investigation, however, finds that the company regularly fails to honor the trial...

Jul 30, 2021 Read Now >

Aon/Willis Towers Watson: DOJ Draws Public Interest-Minded Judge in Suit to Block Broking, Benefits Tie-Up

DOJ’s suit to block Aon’s (AON) purchase of rival insurance broking giant Willis Towers Watson (WLTW) won a potentially sympathetic ear last week when D.C. District Court Judge Reggie Walton was assigned to oversee the case against the $30 billion merger, attorneys familiar with the...

Jun 21, 2021 Read Now >

Aon/Willis Towers Watson: DOJ Staff, Companies At Odds Over Deal’s Impact on Multinational Customers

This article has been updated to include the companies and DOJ’s arguments supporting their positions. DOJ staff informed Aon (AON) and Willis Towers Watson (WLTW) representatives at a meeting last week that the companies’ remedy offer doesn’t sufficiently address the...

Jun 15, 2021 Read Now >

Aon/Willis Towers Watson: Brokerage Expands Litigator Wall’s Role in Talks with DOJ

Aon (AON) has expanded a prominent trial lawyer’s role in engaging with DOJ on its proposed $30 billion Willis Tower Watson (WLTW) buyout, indicating the insurance brokerage is preparing for litigation even as it participates in settlement talks with the department, sources familiar...

Jun 10, 2021 Read Now >

Aon/Willis Towers Watson: Brokerage’s Health Benefits Divestiture Plan Elicits Poker-Faced DOJ Response

Aon (AON) has proposed to DOJ staff an offer to divest two pieces of its health benefits business to address the department’s antitrust concerns with the insurance brokerage’s planned $30 billion buyout of rival Willis Towers Watson (WLTW), sources familiar with the matter said. But...

Jun 03, 2021 Read Now >

Aon/Willis Towers Watson: Brokerage to Divest Retirement Consulting, Exchange Businesses

Aon (AON) in a statement today said it would divest for $1.4 billion its U.S. retirement consulting and retiree health exchange businesses to two separate buyers, responding to DOJ antitrust concerns about the insurance brokerage’s proposed $30 billion buyout of rival Willis Towers...

Jun 03, 2021 Read Now >

Aon/Willis Towers Watson: Brokerage’s Health Benefits Divestiture Plan Elicits Poker-Faced DOJ Response

Aon (AON) has proposed to DOJ staff an offer to divest two pieces of its health benefits business to address the department’s antitrust concerns with the insurance brokerage’s planned $30 billion buyout of rival Willis Towers Watson (WLTW), sources familiar with the matter said. But...

Jun 03, 2021 Read Now >

Aon/Willis Towers Watson: DOJ Considers Proposed Remedy While Stepping up Trial Preparation

As DOJ’s review of Aon’s (AON) proposed Willis Towers Watson (WLTW) buyout enters its late stages, the department is pursuing a dual-track strategy, engaging in settlement talks with the insurance brokerages while stepping up trial preparations in case it decides to challenge the $30...

Jun 01, 2021 Read Now >

Credit Acceptance Corporation: No Final Resolution of Massachusetts Litigation as Company Gets Extension to Answer Complaint

Yesterday, the Commonwealth of Massachusetts and Credit Acceptance Corporation (CACC) entered into a stipulation granting the company until June 3 to file and serve an answer to the Massachusetts Attorney General’s complaint marking the fifth extension granted to the company. It is...

May 20, 2021 Read Now >

Aon/Willis Towers Watson: Divestitures’ Impact Divides Deal Critics as DOJ Weighs Proposal

Opponents of Aon’s (AON) proposed Willis Towers Watson (WLTW) acquisition and other industry participants are divided over whether the insurance brokerages’ divestiture plan would address enforcers’ antitrust concerns with the $30 billion deal, sources familiar with the matter said....

May 13, 2021 Read Now >

Aon/Willis Towers Watson: EC Said Set to Approve Remedies, With Vestager On Board

The European Commission is set to approve remedies proposed by Aon (AON) to secure regulatory approval for the company’s $30 billion acquisition of rival Willis Towers Watson (WLTW), The Capitol Forum has learned. EU competition chief Margrethe Vestager is said to be on board with the...

May 07, 2021 Read Now >

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