Daily News Digest

 

February 28, 2020


The Wall Street Journal

  • All three major indexes fell into “correction territory” yesterday, posting their biggest single-day point drops on record. Even shares that are typically havens during volatility were hit by heavy selling.  Virus fears and virus-related supply-chain disruption were the causes.
  • The FBI warns that email scams, emanating from Africa, that target Americans and U.S. businesses are becoming increasingly sophisticated. Losses are up to $1.7 billion annually.  Investigators say the most successful schemes have bank accounts registered by shell companies.
  • A U.S. Supreme Court decision this week has made it easier for workers to bring lawsuits against their employers for excessive 401(k) management fees.
  • Startups are selling digital tools that combine genetic and longevity data to create long-term financial plans for customers.
  • Some members of the New York City Council are worried that there is racism embedded in artificial intelligence (AI) systems that more companies are using to help make hiring, compensation, and other Human Resources decisions.  City officials would like to regulate the use of this type of AI across a broad range of industries, including financial services.
 

New York Post

  • In an op/ed, New York State fiscal policy expert E.J. McMahon writes that the current market volatility arriving during a critical time in the State’s budget negotiations is a “sobering reminder” that New York’s tax base is “fragile.”
  • Contract signings for existing homes were up significantly in January, according to a national realtors’ group.
 

Politico

  • Comptroller Joseph Otting’s CRA reform proposal is facing resistance from Democrats, community groups, and from banks. Many banks are unsure of the ultimate future costs and the proposal’s impact on incentives for lending.
  • A cannabis industry group wrote to U.S. Senate Banks Committee Chairman Mike Crapo to caution him that the idea of having banks monitor the potency of cannabis products is an unworkable idea that also infringes on states’ rights.
 

Bloomberg

  • Officials from 10 mid-sized banks wrote a letter to federal regulators warning that the Secured Overnight Financing Rate (SOFR) is “ill-suited to them“ as a substitute for LIBOR, and that a “one-size-fits-all approach may not be the most appropriate.” Regulators are planning a series of working sessions to further understand the needs for LIBOR transition.
 

American Banker

  • After a spike in activity in 2019, credit union-bank deals have quieted down this year, after a Colorado regulator halted one deal. But observers say there are more deals in the pipeline.






Questions?

Karen Armstrong
Senior Vice President, Communications and Political Action
karmstrong@nyba.com


Duncan McCausland
Marketing and Communications
dmccausland@nyba.com