trending Market Intelligence /marketintelligence/en/news-insights/trending/k4qwdk4lppbhvoh_td7cda2 content esgSubNav
In This List

Fed sanctions Wells Fargo; JPMorgan clients air concerns over healthcare venture

Blog

Using ESG Analysis to Support a Sustainable Future

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook


Fed sanctions Wells Fargo; JPMorgan clients air concerns over healthcare venture

The Federal Reserve hit Wells Fargo & Co. with a cease and desist order in response to "widespread consumer abuses and other compliance breakdowns." The Fed would cap the bank's asset size to its end-of-2017 levels ($1.952 trillion). Fed Chair Janet Yellen said the cease and desist order "will ensure that Wells Fargo will not expand until it is able to do so safely." The company will also replace four of its board members.

Wells CEO and President Timothy Sloan said that the consent order is "manageable" and that the company will work hard to meet the Fed's requirements "as quickly as possible." Sloan also said that the cap on the company's asset size is expected to lower the 2018 net income by approximately $300 million to $400 million after tax.

Also, Jerome Powell will be sworn in this morning as Yellen's successor to lead the U.S. central bank, Bloomberg News reports.

Some clients of JPMorgan Chase & Co.'s investment-banking arm, including a few large insurers, have expressed concerns about the bank's new healthcare venture with Amazon.com Inc. and Berkshire Hathaway Inc., sources told The Wall Street Journal.

Meanwhile, JPMorgan and Bank of America Corp. have stopped purchases of bitcoin and other cryptocurrencies on their credit cards, Bloomberg reports. Other companies, including Citigroup Inc., are reviewing their cryptocurrencies policies.

In other regulatory news, Consumer Financial Protection Bureau's Mick Mulvaney has reportedly withdrawn from a full-scale investigation of the massive cyber breach at Equifax Inc. last year. The CFPB has not ordered subpoenas against the credit reporting agency or asked executives' sworn testimony, sources told Reuters.

In exchange news, Intercontinental Exchange Inc. increased its stake in Belgium-based settlement house Euroclear to around 10%, the Financial Times' sources say.

And in the credit union space, Debden Credit Union Ltd. and Diamond North Credit Union in Canada are set to merge on Jan. 1, 2019.

In other parts of the world

Asia Pacific: China fines 19 banks over loan fraud; Union Bank of India posts Q3 net loss

Europe: Deutsche's Postbank lawsuit drags on; Allianz bets on Sri Lanka

Middle East & Africa: CI Ratings downgrades Oman; South Africa fines Chinese bank branch

The day ahead

Early morning futures indicators pointed to a lower opening for the U.S. market.

In Asia, the Hang Seng was down 1.09% to 32245.22. The Nikkei 225 slid 2.55% to 22,682.08.

In Europe as of midday, the FTSE 100 declined 1.19% to 7,354.66, and the Euronext 100 was down 1.27 % to 1,030.28.

On the macro front

The U.S. Services Purchasing Managers' Index and the Institute for Supply Management non-manufacturing index are due out today.

The Daily Dose is updated as of 7:30 a.m. ET. Some external links may require a subscription.