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Fed looks at modernizing CRA; Citi, Goldman Sachs boost hiring in Brazil

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Fed looks at modernizing CRA; Citi, Goldman Sachs boost hiring in Brazil

Federal Reserve Vice Chairman for Supervision Randal Quarles said that the U.S. central bank is conducting a wide-ranging review of risks and opportunities associated with the evolution of financial technology. During a HOPE Global Forum event, Quarles said that the Fed is looking at the possibility of modernizing the Community Reinvestment Act.

In other regulatory news, New York Fed President William Dudley said that top officials at financial institutions should face heavier penalties if regulators find wrongdoing in their operations. Dudley — speaking at a U.S. Chamber of Commerce event in Washington, D.C. — said that the stricter approach may lessen financial risks.

Meanwhile, Cleveland Fed President Loretta Mester said that the Fed should avoid overreacting to stronger inflation data in the coming months. In a speech at Princeton University, Mester noted that mild and temporary overshoots of inflation "should not be a cause for concern," just as the current undershooting has not been a major issue.

The Wall Street Journal notes that banks may see "a surge in relief" from crisis-era banking regulations this year after Jelena McWilliams, President Donald Trump's pick to become the next FDIC chair, takes on the role as early as April. Several policy issues, such as the Volcker rule, capital and liquidity rules and leveraged lending, are likely to be tackled first, the publication said.

After years of retrenchment, global investment banks such as Citigroup Inc. and Goldman Sachs Group Inc. are hiring again in Brazil, poaching top bankers from one another as the country's historically low interest rates spur an increased activity in capital markets and M&A, Reuters reports.

Goldman Sachs is in discussions to acquire a stake in India-based Royal Sundaram General Insurance Co. Ltd., sources told Mint.

And in credit union news, Jeff York — the former CEO of CoastHills CU who was put on temporary leave earlier this March — claims that the Lompoc, Calif.-based credit union fired him partly due to a harassment complaint he filed against a board member who wanted to make his personal weight loss part of his 2018 performance goals, CUToday.info reports. York also claims that five members of the senior management team and two board members have left amid "interference in the day-to-day operations" at the credit union. However, Interim CEO Dallis Widick disputed many of York's claims, including the departures of senior management.

In other parts of the world

Asia Pacific: Goldman Sachs in Indian M&A talks; Australian wealth manager files for IPO

Europe: Commerzbank predicts fall in revenue; Deutsche Bank looks to replace CEO

Middle East & Africa: Abraaj mulls unit stake sale; Hapoalim Q4'17 profit up; Bank of Ghana cuts rate

The day ahead

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

In Asia, the Hang Seng rose 0.79% to 30,790.83, while the Nikkei 225 climbed 2.65% to 21,317.32.

In Europe, around midday, the FTSE 100 gained 1.93% to 7,021.46 and the Euronext 100 rose 1.33% to 1,004.44.

On the macro front

The Redbook, the S&P Corelogic Case-Shiller HPI, the consumer confidence report, the Richmond Fed Manufacturing Index and the State Street Investor Confidence Index are due out today.

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