US banking groups are urging the OCC to delay granting bank licenses to crypto firms like Circle and Ripple, citing concerns over policy changes and insufficient application details, as these licenses could allow crypto companies to operate as trust banks and potentially pose systemic risks. The debate highlights ongoing tensions between traditional banking interests and the evolving crypto industry, especially with new laws encouraging stablecoin issuance under the GENIUS Act.
Wells Fargo has made significant progress in resolving its longstanding regulatory issues, with the OCC lifting a 2015 enforcement order, leaving only one remaining enforcement action and moving closer to lifting the asset cap imposed after the 2016 fake accounts scandal.
JPMorgan Chase is facing a $348.20 million fine from the Federal Reserve and the OCC for "unsafe or unsound" banking practices related to its trade surveillance program. The bank's deficiencies in monitoring traders and clients for potential market misconduct led to the penalty and cease-and-desist orders, requiring extensive improvements to its trade surveillance program. This is part of a pattern, as the bank has paid a total of $39.34 billion in fines since 2000, despite making $49.6 billion in profit last year.
The Office of the Comptroller of the Currency (OCC) has issued guidance to national banks and federal savings associations regarding buy now, pay later (BNPL) lending. The OCC expects banks to offer BNPL loans in a safe and sound manner, ensuring fair access to financial services, fair treatment of consumers, and compliance with applicable laws and regulations. The guidance emphasizes the need for clear marketing materials, disclosures, and risk management systems that address the unique characteristics and risks of BNPL loans. BNPL lending carries risks for both banks and consumers, including overextension and limited credit history.
JPMorgan Chase & Co. is bidding for First Republic Bank, but rules forbid banks holding more than 10% of US deposits from buying competitors. The Office of the Comptroller of the Currency is standing by to quickly vet a deal and render a verdict if the Federal Deposit Insurance Corp. deems JPMorgan’s offer attractive and seeks approval. FDIC officials are expected to announce their decision later in the evening.
