Wells Fargo streamlines Western unit, shifts executives as post-scandal overhaul continues; Goldman Sachs gets grief for "cynical" purchase of Venezuelan bonds at deep discount.
The bank agreed to improve anti-laundering controls deemed "unsafe" by the Fed, including oversight of so-called mirror trades that may have helped foreign customers hide large sums of money.
The company was set to sell a 24% stake in itself to buy two Tennessee banks but has restructured the arrangement to avoid a potential conflict cited by a regulator.
The nonprofit Bank On certifies banks that offer deposit accounts with minimal fees. It is one of many initiatives designed to bring more consumers into mainstream banking.
Retail banking chief Mary Mack made several changes, including restructuring leadership in the Western region, where some of the worst incidents in the Wells scandal were said to have occurred.
ATMs tend to run on older versions of the Windows operating system, which potentially makes them targets for ransomware that preys on such vulnerabilities.
Aggressive restructuring moves and stock buybacks are giving CIT time to remold itself, but it will need to show core-banking growth to stave off calls for the company to sell itself.
The Federal Reserve is right to look at shrinking its bloated balance sheet. But if it doesn’t simultaneously stop paying banks to hoard money, the Fed will create the next recession.
