trending Market Intelligence /marketintelligence/en/news-insights/trending/mSFKZRBOo9q_dYFaCcgfjw2 content esgSubNav
In This List

It's business-as-usual at the CFPB; Omega Advisors assets shrink 25%


Breaking into Europe’s Digital Infrastructure Markets: Drivers & Trends


Insight Weekly: US inflation soars; real estate faces slowdown; megadeals drive tech M&A


Breaking into Europe’s Digital Infrastructure Markets: Drivers & Trends


Commercial Banking: June 22nd Edition

It's business-as-usual at the CFPB; Omega Advisors assets shrink 25%

An appeals courthas found the CFPB to be "."But now what? Law professor Adam Levitin calls it a "measly" win for the Republicans critical of the bureau'slack of oversight. The agency's director is now more subject to presidential whims,but that still "likely only matters in the near-term if [Donald] Trump takesthe White House," writes Compass Point's Isaac Boltansky. Boltansky adds, however,that the CFPB's defeat in court will encourage other challengers - good news forOcwen Financial Corp.,TCF Financial Corp., , and others hit by thebureau's Notice and Opportunity to Respond and Advise letters.

It's otherwisebusiness-as-usual. Yesterday, the CFPB penalizedNavy Federal Credit Union$5.5 million over its debt collection practices and ordered the institution to allocate$23 million toward customer redress.

Meanwhile, LeonCooperman continues to defend his asset managementlegacy against the SEC'saccusations of insider trading. But about 25% ofhis Omega Advisors Inc.'sfunds have been withdrawn since the charges were made public, the Financial Times reports.

In broker/dealer news, LPL Financial Holdings Inc. could be up for , according to Reuters. is said to beadvising the firm, which has already garnered interest from other companies andprivate equity firms.

And the banking scene is zoomed in on 's hometownbattle. The Los Angeles Times reportsthat a hearing by the CaliforniaAssembly's Banking Committee saw Chair Matt Dababneh announce a possible state banon the use of mandatoryarbitration clauses when it comes to unauthorized bank accounts. The move wasencouraged by Rep. Brad Sherman of the House Financial Services Committee. And onthe East Coast, New York's State Department of Financial Services has decided tostart reviewing companies' incentive policies as part of its process.

It might not meanmuch, however. CFO John Shrewsberry reportedly told the bank's executives that,despite all these penalties, "the storyline is worse than the economics at this point."

Yet there are othercosts. The rebuilding of incentive and management programs, as well as related safeguards,could take threeto five years, Reuters quotes bank consultant Dan Kleinman as saying. And eventhen, Kleinman points out, there is the question of "whether the type of folks[Wells wants] as employees will even work for the bank [now that its] reputationis soiled."

Part of the solutionseems to be COO Tim Sloan. Reuters' Antony Currie notes that the bank has been "circlingthe stagecoaches around" CEO John Stumpf's probable successor. But Currie askswhythe bank thinks Sloan could signal a fresh start, when he was chief administrativeofficer from 2010 to 2011, and therefore in charge of human resources and reputationmanagement at the time management was already realizing sales quotas were too high.And Carrie Tolstedt began reporting to him when he became COO last year.

Speaking of management,Minneapolis Fed Head Neel Kashkari thinks those who use Wells as an example of abank toobig to manage have got it wrong. It is instead "an example of managersmaking wrong decisions," MarketWatch quotes him as saying.

And here's an update on Brexit:U.K. Prime Minister Theresa May has agreed to let Parliament have a say in her Brexitstrategy, and a LondonCourt will decide this week whether she can even legally trigger Article 50without others' approval, Bloomberg News reports. The FT comments, however, that the two years of negotiations allowed afterthe activation of Article 50 is just too short to tailor a good deal, "giventhe complexity of EU decision-making." At least the recent pound's depreciationmight be a lesson to May on "the limitsof sovereignty in an open economy," the FT adds.

In other parts of the world



Middle East &Africa: Atlas Mara names interim chair;bank stocks fall as Gordhan summoned

The day ahead

U.S. markets are expected to start the day's trading ona lower note as the Nasdaq composite index, the S&P 500 and the Dow Jones IndustrialAverage were trading below fair value in early morning futures trading.

In Asia, the Hang Seng dropped 0.60% to 23,407.05, and the Nikkei225 was down 1.09% to 16,840.00.

In Europe as of midday, the FTSE 100 was down 0.24% to 7,053.66,and the Euronext 100 had fallen 0.06% to 883.03.

On the macro front

The BankReserve Settlement report, the MBA mortgage applications report, the JOLTS reportand the FOMC minutes are due out today.

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