* The Federal Reserve announced that Kenneth Montgomery will spearhead the development of FedNow Service, its planned real-time payments system that aims to support faster payments in the U.S. with interbank real-time gross settlement RTGS and integrated clearing. Montgomery will retain his current position as Federal Reserve Bank of Boston first vice president and COO, where his responsibilities include financial and treasury services, information technology and strategic planning.
* St. Louis Fed President James Bullard said U.S. economic fundamentals remain positive despite recent market volatility. Bullard, who votes on the Federal Open Market Committee this year, again declined to say whether he would support a rate cut at the next FOMC meeting in September, saying he would not "prejudge" his decision and will continue monitoring incoming data. Economists, however, see Federal Reserve Chairman Jerome Powell cutting rates in September as a way to limit risks associated with a global downturn, Bloomberg News reports.
* The U.S. Securities and Exchange Commission charged Alan Heide, former CFO of 1 Global Capital, for allegedly defrauding investors. The SEC's complaint stated that the firm promised investors profits from its short-term cash advances to businesses, but used substantial investor funds for other purposes.
* The U.S. Internal Revenue Service sent cryptocurrency investors another batch of letters informing them of discrepancies in their federal tax returns, though the agency acknowledges that errors may have emanated from information from virtual currency exchanges instead of the taxpayers, Bloomberg News reports.
* Rep. Patrick McHenry, R-N.C., wants the House Committee on Financial Services to conduct hearings related to cybersecurity in the financial industry, CUInsight reports. In a letter addressed to Committee Chairwoman Maxine Waters, D-Calif., McHenry said it is "imperative that the Committee focus its attention on this issue," citing Capital One's recent data security breach as an example.
* Prosecutors in the 1MDB scandal are claiming that Andrea Vella, one of Goldman Sachs' investment banking chiefs in Asia, knew about the bribery plans in the issue and dealt with the scandal's alleged mastermind, Jho Low, sources told Bloomberg News. However, Goldman Sachs told investigators that its senior executives had no knowledge of money being transferred to officials. Goldman last year made changes to its leadership in Asia, where Vella was moved out of his role amid news of his involvement in the Malaysian bond offering.
* U.S. District Judge Beth Bloom ruled that Craig Wright, the businessman claiming he created Bitcoin under the pseudonym Satoshi Nakamoto, will have to face charges by his former business partner, Dave Kleiman, alleging that he stole cryptocurrency and intellectual property, Bloomberg News reports.
* The California Supreme Court rejected Mercury Insurance's petition for review, thereby upholding a $27.6 million fine that the state's insurance department imposed on the insurer for charging illegal fees. In 2015, the department ordered Mercury Insurance to pay the fine for charging auto insurance customers fees without the state insurance commissioner's approval.
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