Banks hail CRA reform; Fighting identity theftAugust 30, 2018
Receiving Wide Coverage …
Expanding CRA: The Office of the Comptroller of the Currency proposed broad changes to the Community Reinvestment Act “that could allow institutions to redirect billions of dollars spent on loans and investments” in poor communities. The plan includes “expanding the types of loans and activities that banks can count toward their CRA performance, publishing those results periodically, and broadening the geographic scope of the rules for each bank.”
“The OCC’s paper drew a positive response from banks, which support making the rules more flexible,” the Wall Street Journal says, while “consumer groups said they worried about the impact on local communities.” Wall Street Journal, American Banker
Jesse Van Tol, the chief executive of the National Community Reinvestment Coalition, says the propose changes, while “promoted as ways to simplify the law, will, in fact, be a huge step backward,” in an op-ed. “We can’t allow banks to cherry-pick where they lend. One easy formula is no substitute for a commitment to invest in all of America’s communities.”
Mobile payment battleground: Paytm, India’s largest mobile payments company, confirmed that Berkshire Hathaway has taken a stake in its parent company and that it will use the money, reportedly at least $300 million, to double the number of merchants on its system to 17 million. “I take this as a validation of Indian entrepreneurs fighting the global companies in this country,” said Vijay Shekhar Sharma, Paytm’s founder, referring to Google, Amazon and other foreign-based competitors. “Paytm is building a truly world-class business out of India — a business capable of standing alone.”
Not to be outdone, Google “is raising its mobile-payments game in India with new functions and services as global players race to woo the nation’s legions of consumers who are skipping credit cards and transacting on smartphones instead.” The U.S. tech giant is expanding its mobile money service and partnering with local banks to offer consumer loans within its mobile app. It is also adding more online and physical merchants to its platform, which allows users to transfer money electronically without the use of a credit or a debit card.
Good to go: The Senate voted to confirm Richard Clarida as vice chairman of the Federal Reserve. He was approved by a 69-26 vote, with 46 Republicans and 23 Democrats voting yes. Only one Republican, Sen. Rand Paul of Kentucky, voted against. Wall Street Journal, Financial Times, New York Times, Washington Post, American Banker
The Senate also confirmed Dawn Stump and Dan M. Berkovitz to fill, respectively, the Republican and Democrat seats on Commodity Futures Trading Commission, bringing the agency to full strength for the first time in four years.
Wall Street Journal
Protecting children: A federal law that takes effect…