JPMorgan exits Mexico private banking; bank regulators aim for joint CRA reform

TOP NEWS IN BANKING & FINANCIAL SERVICES

* JPMorgan Chase & Co. is closing its private banking business in Mexico, Bloomberg News reported, citing people with knowledge of the matter. The bank signed an agreement to refer local business to Banco Bilbao Vizcaya Argentaria SA unit BBVA Mexico but will continue to serve its Mexican clients through its platform outside the country, the report added.

* Federal Reserve Chairman Jerome Powell on Feb. 24 said despite disagreements, bank regulators still aim to write a joint rule to reform the Community Reinvestment Act. During a hearing before the House Financial Services Committee, Powell said he believes there is "an opportunity for a harmonized rule among the agencies." He emphasized that regulators "are just getting started" on discussing the reformation plans and declined to set to a timeline for the same.

➤ Cadence Bancorp. CEO thinks bank is worth more than stock price

Cadence Chairman and CEO Paul Murphy Jr. believes that "the value of my company is a bit higher than the price of my stock," a factor that he said the company "would think about when talking to any potential partner." Murphy, however, said that a deal is not imminent following a Bloomberg News report on a potential sale.

➤ Japan sets sight on another record year of green bond issuance

Analysts project another record year of green bond issuance in Japan as the pandemic appears to be subsiding, and corporate issuers could rush to raise funds for green projects ahead of a potential rebound in borrowing costs as soon as later this year.

BANKING

* Capital One Financial Corp. has started to lift previously imposed borrowing limits for certain customers as it seeks to resume growth in its credit card business, Bloomberg News reported. During a virtual investor conference, Capital One CEO Richard Fairbank said increases are being offered to its current customers with prime and subprime scores.

* Birmingham, Ala.-based Regions Financial Corp. is actively pursuing bolt-on acquisitions more than bank deals. During a virtual conference, CEO John Turner said the company is "very interested in bolt-on acquisitions, nonbank opportunities" given its view that bank deals are "disruptive" and "oftentimes not successful."

FINANCIAL SERVICES

* Thrivent Financial for Lutherans on Feb. 19 filed a deposit insurance application with the Federal Deposit Insurance Corp. for Thrivent Bank, which would operate as an industrial loan company, American Banker reported, citing FDIC records. In a statement, the company said the charter would authorize it to directly invest capital to add bank offerings.

* Goldman Sachs Group Inc. CEO David Solomon is bent on bringing employees back to the office. At a Feb. 24 virtual forum, he said that operating flexibility was very, very different. “This is not ideal for us. And it's not a new normal. It's an aberration that we're going to correct as quickly as possible,” he said.

POLICY AND REGULATION

* U.S. Securities and Exchange Commission Acting Director Allison Herren Lee has launched a review of corporate climate-related financial disclosures and plans to update a decade-old guidance document as well, Lee announced Feb. 24. In a statement, Lee said she has directed the Division of Corporation Finance "to enhance its focus on climate-related disclosure in public company filings."

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