The news cycle slowed for a while as much of the business world took a break over the holiday season. But it didn’t stop entirely. Here are a few useful things to know about that you may have missed:
The Consumer Financial Protection Bureau (CFPB) made Wells Fargo pay: On December 20, the regulatory watchdog slammed the bank for mistreatment of consumers, saying it engaged in a slew of illegal activities, including incorrectly assessing fees and interest, misapplying loan payments, illegally foreclosing on homes and repossessing cars, and charging surprise overdraft fees. The bank’s actions affected over 16 million customer accounts.
Chopra’s warning shouldn’t be taken lightly, as 2022 proved the director would aggressively come down on bad actors. Expect to see the intense scrutiny of Wells Fargo continue in 2023.
JP Morgan got sued: The government of the US Virgin Islands filed a lawsuit on December 27 against JP Morgan for its ties to the late financier Jeffrey Epstein.
JP Morgan faces a tough road ahead in either trying to get these cases tossed or going to court. Crackdowns on misconduct at banks are top of mind for regulators—though late last year the Department of Justice announced it would show some leniency toward banks that come clean about misconduct. JP Morgan will need to consider the best way to proceed.
The Securities and Exchange Commission (SEC) charged executives in the crypto world: The SEC charged former Alameda Research CEO Caroline Ellison and former FTX Chief Technology Officer Gary Wang on December 21 with defrauding investors using the FTX crypto asset trading platform.
The fallout of the FTX collapse and the subsequent findings regarding its sister company Alameda Research, as well as the legal proceedings against executives at both firms will lay the foundation for crypto regulation. As this story continues to unfurl, expect to see regulators around the world finally lay down the law in the crypto world.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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