Nearly two weeks after Russell Simmons’ RushCard fiasco came to light, the U.S. Consumer Financial Protection Bureau says it is investigating the freezing of financial accounts that left customers without access to their funds.
Most Americans who heard CNN host Anderson Cooper mention the 1933 regulation last night at the Democratic presidential debate likely had little idea of the law’s impact on U.S. banking.
The new policy requires customers who want to make a cash deposit to show a driver’s license or other identification, and they also must actually be listed on the account.
JPMorgan Chase may have to cough up billions to settle charges tied to toxic mortgages during the financial crisis, but its consumer bank division is still sailing along. For the second consecutive year, Chase led the nation in bank deposit growth, with customers adding $87 billion to their bank accounts.
FDIC-insured banks reproted a $7.8 billion (22.6 percent) increase from the $34.4 billion in profits a year earlier. It is also the 16th consecutive quarter that earnings have seen a year-over-year increase.
These consumers lose an estimated $2.9 billion annually to financial exploitation, and it’s estimated that for each case that is reported, 43 others go unrecognized, according to a blog post Thursday by the Consumer Financial Protection Bureau.
The U.S. banking system has come a long way since the bottom of the financial crisis — to the tune of five consecutive quarters of earnings that have registered a year-over-year increase.
Elizabeth Warren, the freshman Senator from Massachusetts, made “too big for trial” a virtual slogan for her crusade to get regulators to explain why no big bank has been prosecuted for wrongdoing in the run-up to the crippling financial crisis. She is at it again.
The swiftness and scope of the scheme and thefts that unfolded make it a precedent-setting event for authorities and cyber-security specialists — $40 million was taken in about 36,000 transactions over a 10-hour period.
The FDIC, the regulator most familiar to consumers as the insurer of their bank deposits, now wants to make sure that lenders don’t take advantage of customers seeking short-term cash with products that are similar to payday loans.