Elizabeth Warren is asking large financial institutions to weigh in on the Consumer Financial Protection Bureau's arbitration rule. "If your lobbyists are taking such strong positions against the rule, is there a reason both you and your bank have been unwilling to take a public position?" Warren wrote in a letter addressed to CEOs at JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co., Citigroup Inc., U.S. Bancorp, PNC Financial Services Group Inc., TD Group US Holdings LLC, Capital One Financial Corp., HSBC North America Holdings Inc., Charles Schwab Corp., BB&T Corp., SunTrust Bank, Barclays US LLC, Ally Financial Inc., American Express Co. and Citizens Financial Group Inc. The Massachusetts Democrat wants them to respond by Sept. 1.
In an interview with CNBC, Automatic Data Processing Inc. President and CEO Carlos Rodriguez said Pershing Square Capital Management LP CEO William Ackman reminds him of a "spoiled brat in school asking a teacher for an extension for their homework." Pershing Square had taken an 8.3% stake in the fintech company, and Ackman wanted an extension on the deadline to nominate members to the ADP board. The deadline was Aug. 10, but Ackman sought an additional 30 to 45 days. On Monday the hedge fund nominated three directors to the company's board, including Ackman himself. Previously Pershing Square aimed to nominate five directors and push out Rodriguez as CEO.
Walter Investment Management Corp. said "substantial doubt" has been raised over its future. The specialty lender expects to continue for at least the next 12 months. However, the company said it may be unable to maintain sufficient liquidity to operate its servicing and lending businesses because it is unable to renew, replace or extend various financing or facilities on favorable terms.
In more banking news, at least three lawsuits have been filed against OceanFirst Financial Corp.'s proposed acquisition of Sun Bancorp Inc., all claiming that the latter's board is in breach of its fiduciary duty.
Capital One is laying off about 400 call center employees in Rolling Meadows, Ill., noting a decline in call volumes, the Chicago Tribune reports.
And Coinbase announced on its blog that it secured $100 million in Series D funding. The digital currency exchange plans to use the new capital to open an office in New York City for professional trading platform GDAX, invest in Ethereum network browser Toshi and expand the engineering and customer support teams.
In other parts of the world
Asia-Pacific: National Australia Bank's Q3 cash profit up 5%; HK regulator may penalize CBA
Europe: Old Mutual's H1 profit up 87%; Nationwide's Q2 profit drops; Co-op loss widens
Middle East & Africa: Saudi banks see NPL rise; Zenith posts Q2 profit; Mozambique, Zambia cut rates
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Hang Seng dropped 2.04% to 26,883.51, and the Nikkei 225 slipped 0.05% to 19,729.74.
In Europe, around midday, the FTSE 100 was down 1.21% to 7,300.56, and the Euronext 100 was down 1.06% to 986.29.
On the macro front
The consumer price index and the Baker-Hughes Rig Count report are due out today.
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