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- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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NEWSLETTERS & ALERTS
Sales Practices a Key Risk to Banking System - OCC
[Photo: by Tim Parkinson / Flickr]
The Office of the Comptroller of the Currency views "governance over [bank] sales practices as a key risk issue" in light of Wells Fargo's phony account scandal. This is the first time the OCC has deemed sales practices a key threat, putting them on the same level as hacking, low reserves, and a gathering storm of credit risk from significant growth in loans and deteriorating lending standards. The OCC further called for a wide-sweeping review of large and mid-sized institutions.
The office, along with other regulators, has been looking at bank sales practices since it penalized Wells Fargo in September for $185 million for years of allegedly opening ghost credit-card and bank accounts in customers' names or convincing customers to add unnecessary accounts.
On a call with reporters, Comptroller Thomas Curry said the review continues, but declined to provide details and said he could not give a public assessment on individual banks or the sector as a whole. The OCC is currently looking at how the banks it has selected for review - large and midsized banks - handle their sales practices and then will expand its work in the near future based on the findings, he said.
The OCC said it expects to continue to see mergers and acquisitions among banks, which could pose risks to banks' ability to manage information systems and platforms and controls.