* King Harris Bancorp is buying a controlling stake in Community Financial of Kentucky, the parent company of People's Bank, in a deal set to close in the fourth quarter, The Lebanon Enterprise reports.
* After supporting an interest rate cut in July, Federal Reserve Bank of San Francisco President Mary Daly could not say whether another rate cut is coming in September as she is now taking a "watch-and-see" stance.
* Moody's downgraded its 2019 outlook for global investment banks to stable from positive, citing slower global economic growth and a lower-interest-rate environment as likely headwinds to profitability.
* Consumer groups are concerned mandatory arbitration might be abused by banks and big companies, American Banker reports. Cited as an example was Wells Fargo's attempt to move to arbitration a lawsuit filed against it by New Jersey Pastor Jeff Edwards, whom the bank had mistakenly identified as someone cashing fraudulent checks. While the Consumer Financial Protection Bureau had tried to ban banks and credit unions from using mandatory arbitration clauses, Congress and President Trump successfully countered the rule. Goldman Sachs recently also succeeded in its petition to move a former employee's anti-money-laundering lawsuit to arbitration.
* As investors get wary of recent developments in Europe, JPMorgan's $3.8 billion BetaBuilders Europe exchange-traded fund saw an outflow of $450 million this week, Bloomberg News reports. It was the biggest outflow since the ETF's launch in June 2018. As of June 30, JPMorgan owned almost all of the ETF's assets.
* A coalition of investors that includes state pension funds for California and New York is urging global banks to consider indigenous people's objections to infrastructure projects affecting them, Financial News reports. To achieve this, the coalition, which represents more than $2.9 trillion, wants to modify the Equator Principles, a set of voluntary green and social finance standards signed by 97 leading banks. Signatories to the document include Bank of America, Barclays, Citigroup, Credit Suisse, HSBC and JPMorgan.
* A class action suit against Marietta, Ga.-based LGE Community CU over its overdraft practices may now proceed as the 11th Circuit Court of Appeals overturned a 2017 ruling dismissing the case, CUToday reports.
* A district court in Kansas is placing Physicians Standard Insurance into rehabilitation. Vicki Schmidt, the state's insurance commissioner, will be the rehabilitator, while the insurance department will serve as the supervisor.
* Stockholders of WageWorks approved the company's acquisition by HealthEquity. WageWorks will become a wholly owned subsidiary of HealthEquity following the acquisition.
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