Fed's Brainard: Disappearance of labor-inflation link brings risk | 10 charged in multimillion-dollar 2016 cyberthefts | 5 banks fined €1.07B for FX market manipulation
May 17, 2019
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Fed's Brainard: Disappearance of labor-inflation link brings risk
The relationship between inflation and labor, as well as other resource markets, has broken down and could be problematic if the Federal Reserve cannot bring inflation closer to a 2% target, said Fed Governor Lael Brainard. Eventually, Americans could lose faith that inflation will ever meet the target, she said.
Reuters (5/16) 
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10 charged in multimillion-dollar 2016 cyberthefts
Ten members of a cybercrime network are charged with stealing millions in the 2016 release of malware that allegedly helped them transfer money out of victims' accounts. The US and five other nations worked together on the investigation -- a level of international cooperation that's vital to combating fraud of this scope, said Craig Newman, a partner at law firm Patterson Belknap Webb & Tyler.
The Wall Street Journal (tiered subscription model) (5/16),  The Hill (5/16) 
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Industry Watch
5 banks fined €1.07B for FX market manipulation
Five banks have agreed to pay fines to the EU, which says nine traders colluded via online chat from 2007 to 2013 to manipulate the foreign exchange market. Barclays, Royal Bank of Scotland, Citigroup, JPMorgan Chase and Mitsubishi UFJ Financial Group will pay €1.07 billion combined, the European Commission says.
Reuters (5/16),  Bloomberg (tiered subscription model) (5/16),  Financial Times (subscription required) (5/16),  The Wall Street Journal (tiered subscription model) (5/16) 
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Blankenstein leaving CFPB
Eric Blankenstein, a policy director at the Consumer Financial Protection Bureau, is leaving his post at the end of May to pursue another opportunity. Blankenstein was criticized for racially charged blog posts he made in 2004.
HousingWire (5/16),  The Washington Post (tiered subscription model) (5/15) 
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May to unveil resignation date after Brexit vote
UK Prime Minister Theresa May says she will announce a timetable for her departure after lawmakers take up her Brexit bill in early June. Some members of her Conservative Party have called for her to leave immediately.
Politico (5/16) 
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Where are students hampered the most by loans?
Student-loan borrowers with the highest debt-to-earnings ratio live in cities in Arizona and Florida, while those with the least amount of student debt live in California, New York, Wyoming and Texas, according to a study by WalletHub. The high amount of debt can affect graduates' ability to buy homes or save for retirement, analyst Jill Gonzalez says.
Yahoo (5/15) 
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Restoy: Varying US, EU Basel III approaches need review
Global regulators should examine the different approaches the EU and the US are taking to implement Basel III, says Fernando Restoy, chairman of the Bank for International Settlements' Financial Stability Institute. A review could show regulators how to encourage "a level playing field while protecting financial stability," Restoy says.
MLex (subscription required) (5/16) 
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W.Va. sees decline in bank branches
West Virginia had 671 bank branches in 2011, but the number had dropped to 618 by mid-2018, according to the West Virginia Bankers Association. The decline is due in part to new technologies and mobile banking.
Charleston Gazette-Mail (W.Va.) (tiered subscription model) (5/16) 
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The Latest from Capitol Hill
Rep. Sherman: Congress should intervene on bank loan loss rules
Congress should take action if the Financial Accounting Standards Board moves forward with new loan loss standards for banks, said Rep. Brad Sherman, D-Calif. The rules are scheduled to take effect in 2020, but Sherman is calling for a delay.
Bloomberg Tax (subscription required) (5/16) 
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Economic Report
Drop in initial jobless claims tops economists' forecasts
First-time unemployment claims fell 16,000 last week to 212,000, the US Labor Department said. Economists surveyed by Reuters had expected claims to drop to 220,000.
Reuters (5/16) 
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