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Fed fines Citi $8.6M; Wells Fargo's legal woes continue


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Fed fines Citi $8.6M; Wells Fargo's legal woes continue

The Federal Reserve Board fined Citigroup Inc. an $8.6 million fine over improper practices related to mortgage servicing activities conducted by CitiFinancial Credit Co. Inc. in 2015. CitiFinancial exited the mortgage servicing business in 2017.

In other regulatory action in the banking sector, the Department of Justice has launched an investigation into whether Wells Fargo & Co. conspired with developers to place low-ball bids on tax credits supporting low income housing projects, sources for Bloomberg News say. In its Form 10-Q filed Aug. 3, the company disclosed that federal government agencies were looking into the matter. The Justice department is also investigating other banks, according to two sources.

The Consumer Financial Protection Bureau issued a consent order against Richard Moseley Sr., Richard Moseley Jr. and 20 interrelated corporate entities to settle the unlawful origination and servicing of short-term, small-dollar online loans. The defendants must pay back about $69 million to the CFPB to redress affected consumers taken in by the fraud. However, the parties agreed to a $1 penalty because of the defendants' limited ability to pay. They also agreed to forfeit $14 million in assets as well as be banned from the payday loan industry.

In other parts of the world

Asia Pacific: State Bank of India posts Q1 loss; CIMB gets M&A nod; S&P changes ORIX outlook

Europe: Lira woes weigh on European markets; Talanx Q2 profit dips; Fitch hikes Greece

Middle East & Africa: Turkish lira turmoil hits MEA markets; S&P revises outlook on Rwanda

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Financial services companies report mixed Q2 EPS performance: A few financial services companies that reported earnings between Aug. 3 and Aug. 9 missed their EPS estimates by a few pennies. Meanwhile, KKR Real Estate Finance Trust topped earnings estimates by almost 40% and Thomson Reuters outperformed analysts' EPS expectations by 55%.

The day ahead

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

In Asia, the Hang Seng was down 1.52% to 27,936.57. The Nikkei 225 retreated 1.98% to 21,857.43.

In Europe as of midday, the FTSE fell 0.51% to 7,628.81, and the Euronext 100 slipped 0.43% to 1,057.93.

On the macro front

No notable reports are due out today.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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