Some banks are selling their Paycheck Protection Program loans to non-bank entities eager to garner the business. New York's The Loan Source, which was formed specifically to deal with PPP loans, purchased 20,000 loans from 14 lenders and expects to purchase more.
The Office of the Comptroller of the Currency fined Capital One Financial $80 million for failure to prevent a 2019 cyberattack that compromised the personal data of about 106 million card applicants and customers. The regulator said the bank failed to adequately evaluate risks before relocating the data to the public cloud.
Bank of America officials say no customer balances were affected by a now-repaired glitch that caused some to see a balance of zero when they checked their account online or through the mobile app. The bank is looking into how many customers experienced the glitch.
Initial jobless claims in the US totalled 1.186 million last week, less than the 1.42 million projected by economists and the lowest since the coronavirus crisis began. Continuing jobless claims also showed a slight improvement with a fall of 844,000 to 16.1 million.
Consumers reduced their household debt for the first time in six years in the second quarter, as nonessential spending fell in response to the coronavirus shutdown, a New York Federal Reserve survey finds. The largest drop was for credit card balances, which fell by $76 billion to around $820 billion.
The Federal Reserve added $13 million to the total value of loans made under its Main Street Lending Program last week. It also disclosed details of the largest loan so far, of $50 million to the operator of the Mount Airy Casino Resort in eastern Pennsylvania.
Federal Reserve Governor Lael Brainard said the central bank will launch its instant payment system as soon as possible, after seeing how it could have helped the US cope with the turmoil of the coronavirus pandemic. "The ability to disburse funds via instant payments could have helped reduce the strain for those who needed the funds quickly in order to meet financial obligations," she said.
Liberal political action committees are taking aim at Democratic incumbents in their primary races by highlighting Wall Street-friendly positions they have taken. Some groups are currently targeting House Ways and Means Committee Chairman Richard E. Neal, D-Mass., and claiming success for the primary defeat of long-time Rep. William Lacy Clay, D-Missouri, who chairs the House Financial Services Subcommittee on Housing, Community Development and Insurance.
Democratic Congressional leaders and Trump administration officials failed to reach agreement Thursday on any major issues regarding the next coronavirus aid bill. Treasury Secretary Steven Mnuchin said the president may issue executive orders to end the wrangling, but indicated possible concessions on some points including funding for local and state governments and first responders.
Pandemic-induced isolation has hurt communication because we're relying on indirect communication methods and fewer nonverbal cues, with the one-way toxic exchanges of social media being just one example, writes Steve McKee. "As fallen human beings, we need all the help we can get to understand and be understood -- all of our senses, all the time we can get to explore ideas, all of the back-and-forth that enables clarification and overcomes miscommunication," he writes.
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