News Topic: Risk management

Moody's Investors Service downgraded JPMorgan Chase's prime jumbo mortgage originator assessment to its second-highest rating, citing the bank's growing reliance on correspondents with delegated underwriting authority and shortcomings in its ... Read full article

State Treasurer John Chiang says that Wells Fargo is keeping patterns of abuse hidden from view by resolving customer disputes through private arbitration. ... Read full article

IBM claims that by monitoring customer behavior first and foremost, banks can make suspicious activity reporting far more accurate. ... Read full article

It's a fickle industry, given the uncertainty over the Affordable Care Act and government reimbursements, but opportunities in lending to medical practices and device manufacturers make it hard to resist, bankers say. ... Read full article

The trading ban is even less effective than feared at making the banking system safer. ... Read full article

Wells Fargo estimates that in 400 instances, borrowers later went through foreclosure who were improperly denied or not offered a mortgage modification. ... Read full article

Freddie Mac produced modest second-quarter results, reflecting a stabilizing business that CEO Donald Layton compared to a utility company. ... Read full article

A community bank in Virginia thought the $2.4 million hackers stole from its customers would be fully covered by its insurance policy, but its carrier begged to differ. Their highly technical legal fight is a cautionary tale for all bankers who assume they ... Read full article

The chairman of the Federal Reserve is testifying before Congress this week, where he will likely face tough questions about the agency’s decision to let two banks slide on their exams late last month. ... Read full article

Bank of America has agreed to pay a multimillion-dollar sum to settle a defamation claim brought by former executive Omeed Malik, who was fired by the bank earlier this year, according to a person familiar with the matter. ... Read full article

Bankers should resist the urge to skirt financial regulations, including know-your-customer and lending standards, to make a sale. The danger of penalties and a possible reputational hit is too great. ... Read full article

U.S. financial institutions such as Bank of America, Citigroup, JPMorgan Chase and Goldman Sachs have reported hundreds of millions of dollars of losses stemming from the scandal at retailer Steinhoff International. ... Read full article

Financial institutions are beginning to get on board with the global fight against climate change, but they are still trailing pension funds and insurance companies in putting these concerns into action. ... Read full article

Citigroup has appointed Jay Jacobs, former president of the investment management firm PIMCO, as an independent director. ... Read full article

Under a consent order with Texas and seven other states, the Atlanta-based credit reporting firm agreed to shore up its information security efforts, but it will not have to pay any financial penalties. ... Read full article

The company said the aim of a redesign and additional automation is to make its compliance software easier for bankers to use. ... Read full article

U.S. officials are letting big banks exploit loopholes in Dodd-Frank rules that were meant to curb excessive risk-taking in derivatives, several academics and former policymakers warned. They urged state attorneys general to take action. ... Read full article

Morgan Stanley CEO, New York Fed chief caution against failing to remember what caused the financial crisis; Wells Fargo may combine its two big wealth management businesses. ... Read full article