Daily Archives: January 5, 2017

GOP’s repeal and replace Obamacare in one cartoon

Open Thread - Dive In!

Credit: Carlson/Universal UClick

Be careful what you tweet: Bernie Sanders just trolled Trump from the Senate floor — with one of his own tweets

And a great speech by Bernie…

NY creates “bill of rights” for residents facing foreclosure

ALBANY, N.Y. (AP) New York state has published a “bill of rights” for home owners facing foreclosure.

Democratic Gov. Andrew Cuomo announced the move Wednesday. It’s one piece of a broader effort to help New Yorkers struggling to stay in their homes.

The bill of rights reminds residents that they have the right to stay in their home and the duty to maintain it during the foreclosure process. It also lets residents known they have a right to be properly notified before a foreclosure suit is filed.

Read on.

Deutsche Bank To Fork Over $95M In US Tax Avoidance Settlement

Law360, New York (January 4, 2017, 8:20 PM EST) — Deutsche Bank AG will fork over $95 million to end the U.S. government’s suit accusing it of trying to avoid paying taxes by setting up shell companies, according to a settlement approved Wednesday in a New York federal court.

The settlement comes after the government sued Deutsche Bank in December 2014 for allegedly engaging in a tax evasion scheme by setting up shell companies to hide profits on the appreciation of stock that the bank purchased in 1999. (AP) The settlement, which received the stamp of…

Law360

Jay Clayton, Wall Street lawyer, is Trump pick to lead SEC

President-elect Donald Trump’s choice to be the next top cop of Wall Street is Jay Clayton, an elite lawyer who has defended big banks for their financial crisis-era misbehavior.

Clayton has extensive ties to Wall Street. He advised Goldman Sachs on its government bailout and his wife Gretchen currently works at the bank as a private wealth advisor.

Trump announced his SEC pick on Wednesday and explained that Clayton’s background as a Wall Street lawyer will help unleash the “job-creating power” of the economy while still providing strong oversight.

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CFPB Looks To Regulate Overdrafts In 2017

The CFPB is casting a critical eye on overdraft fees charged by banks — despite facing an uncertain future in the Trump administration.

The Dodd-Frank-enabled consumer protection group has long been making noises about limiting the fees banks can charge consumers for overdrawing their accounts — and now it seems it will drop a new set of governing rules later this year.

Consumer advocates have long noted that overdraft fees have quietly become a surging source of income for banks. Some observers said that revenue from overdraft fees now outpaces that from pawn shops, payday lenders and tax-refund anticipation checks put together. These advocates argued that banks have essentially found new ways to make consumers foot the bill in the face of profit-dropping low interest rates.

“[Overdrafts] allow customers to spend money they don’t have — then punish them for it,” noted Josh Reich, cofounder and CEO of Simple, an online bank based in Portland, Ore. The seven-year-old bank has never allowed account balances to go below zero and never will.

“Big banks are preying on people when they need financial help the most,” he claimed.

And some big banks have made some pretty big bucks on overdrafts.

Read on.

Wells Fargo, no longer creating fake accounts, now making profits from overdraft fees

Wells Fargo’s income from overdraft charges grew by 7.5 percent in the third quarter of 2016. Compared to its national bank peers, that rate is more than 5 times the average and, ultimately, likely to be a point of concern for consumer banking regulators who have vowed to set new rules on overdrafts in the second half of 2017.

According to the Financial Times, the other top overdraft fee-earners in the country (JPMorgan Chase, Bank of America, TD Bank and US Bank) averaged a 1.3 percent increase in overdraft-related income.

Each of the five banks maintain a policy to charge a one-time overdraft fee of $34 to $36 on accounts that drop below a $0 balance.

Wells Fargo associated its third-quarter rise in overdraft income to the growing number of customers that are using their accounts for debit card purchases and online bill payments.

Read on.