MONDAY JULY 12, 2021 VOL. 186 No. 131 AMERICANBANKER.COM Follow us on Twitter @AmerBanker How lenders will spend federal 5 windfall on low-income communities Fine-tuning fees The Treasury Department is awarding $1.25 Two of the priciest rewards cards have adjusted their annual billion to 863 community development financial institutions through the Rapid fees. Will more follow? Response Program, which allows banks See story on page 5 and credit unions to earmark funds for mortgages and business loans in underserved markets. Page 6 Issuer January 2021 July 2021 In Plaid, European neobanks Amex Platinum $550 $695 6 find an open banking passport The San Francisco data aggregator, which J.P. Morgan Private also operates out of London, provides Reserve $595 $550 international connections between fintechs Chase Sapphire and traditional banks. Page 7 Reserve $550 $550 Mobile tech company to introduce a savings app Citi Chairman $500 $500 7 for gender transitions Bliss, which is part of a suite of apps under U.S. Bank Altitude Reserve $400 $400 development by the mobile technology company Euphoria.LGBT, is working with Jiko to offer a tailored savings account for Source: Staff research transgender individuals preparing for their transition. Page 8 Up or down? Issuers adjust Wells Fargo hires JPMorgan’s dailybriefing 3 fees to compete for luxury 8 Bei Ling as head of HR spending Wells CEO Charlie Scharf, a former Jamie Banking regulators expected JPMorgan Chase is cutting the annual fee of Dimon protege, has surrounded himself with 1 to advance Biden agenda its top-tier card while American Express is JPMorgan Chase alumni. Ling will start in despite ‘acting’ tag raising the fee of its own premium card. Both October and join the company’s operating The Federal Housing Finance Agency banks hope to win consumers’ travel dollars committee. Page 9 recently became the third agency along with by finding the sweet spot between cost and the Office of the Comptroller of the Currency rewards. (See chart above.) Page 5 KeyCorp hires Wells Fargo and Consumer Financial Protection Bureau 9 executive to fill new ESG role without a Senate-confirmed leader. But U.S. Bank deal would double Jennifer Eastes is tasked with spearheading analysts say the appointment of interim 4 size of asset management unit and accelerating environmental, social and chiefs gives the administration even more The Minneapolis company has agreed to buy governance efforts at the Cleveland-based control over regulatory initiatives. Page 2 PFM Asset Management. Like many in the company. Page 9 industry, it is hunting for additional sources Five takeaways from the trial of noninterest income. Page 6 BofA debuts crypto 2 of Paul Manafort’s banker 10 research team in latest Prosecutors have rested their case against Wall Street push onetime bank CEO Stephen Calk, who Bank of America created a new team allegedly approved millions of dollars in dedicated to researching cryptocurrencies, loans in exchange for a potential job in the marking Wall Street’s latest push to capitalize Trump administration. Federal Savings Bank on investors’ frenzy for digital assets. Page 9 employees have testified against Calk, whose lawyers have sought to shift blame to… Page 3 MONDAY JULY 12, 2021 AMERICANBANKER.COM PAGE 2 the [Office of the Comptroller of the Currency]. of the gate to signal a change of direction for BIDEN ADMINISTRATION She is the key counterparty required for their agencies compared to prior leadership any changes to the contract between the under Trump. Yet acting heads appointed government and Fannie and Freddie,” Seiberg during the Trump administration also Banking regu- said. “I think Treasury has a lot of influence attempted to make significant policy. over how the CFPB views policy.” Former acting Comptroller Brian Brooks, lators expect- The Biden administration is waiting for who served in the final months of the Trump Congress to vote to confirm Federal Trade administration, crafted a controversial rule Commission member Rohit Chopra to serve that would have prohibited banks from ed to advance as CFPB director. The administration has discriminating against legal industries that also struggled to find a consensus around are politically disfavored. But the agency Biden agenda a candidate to serve as comptroller of the halted the rule’s publication following Brooks’ currency. departure in January, and Hsu has signaled he Some analysts say the vacancies at the won’t revive it. despite ‘act- financial regulatory agencies stymy the Biden Some see other decisions by Hsu, who was administration’s ability to advance its policy named acting comptroller in May, as a sign ing’ tag agenda because acting directors traditionally that he intends to be more than a caretaker. haven’t used their leadership position to One of his first moves was to appoint a new By Neil Haggerty implement major policy changes. chief counsel for the OCC, former Fed official July 09, 2021 But sources close to the financial services Benjamin McDonough. More recently, he WASHINGTON — The Supreme Court’s industry say that the role of acting leaders at reorganized the OCC’s leadership structure decision last month allowing President Joe regulatory agencies has changed. so that supervision units report directly to the Biden to fire the Trump-appointed head of “Traditionally, acting [directors] were seen comptroller. the Federal Housing Finance Agency not only as caretakers,” said Meg Tahyar, co-head of “There was a little bit of surprise that resets the policy trajectory of Fannie Mae and financial institutions and fintech at Davis [Michael Hsu] quickly moved to install a new Freddie Mac’s regulator. It also meant yet Polk & Wardwell. “But today, it’s a different general counsel to the OCC,” said a financial another agency without a Senate-confirmed ballgame. It’s just all different today. We’ve services lobbyist who spoke on the condition leader. seen in the recent past ‘activist’ acting, and of anonymity. “For Hsu to kind of make that Three financial services regulators are now we’ve seen ‘caretaker’ acting.” move very quickly after being installed as led by an “acting” appointee. After Biden Jeff Naimon, a partner at Buckley, said that acting suggests one of two things. Either you’re ousted FHFA Director Mark Calabria, senior the officials appointed as acting leaders at the going to be acting for a while and expect to agency official Sandra Thompson was quickly financial regulators have the ability to advance be acting for a while, or maybe this was an named as the interim director. She joined substantial policy priorities. approved sort of decision with others in the Dave Uejio, acting director of the Consumer “The people who are already in place are administration, that in this sort of caretaker Financial Protection Bureau and acting fully capable of pushing the administration’s role, this was a move they wanted to make.” Comptroller of the Currency Michael Hsu. agenda forward, because they’re not just Meanwhile, Uejio, who has been serving as Without permanent heads in place, long- caretakers,” Naimon said. “They are actors.” acting CFPB director since Kathy Kraninger term policy goals such as reforming the Both Uejio and Hsu moved aggressively out resigned in January, vowed to quickly penalize Community Reinvestment Act and charting a future for Fannie and Freddie could be slowed, some observers said. But analysts say Established 1836 One State Street Plaza, 27th floor, New York, NY 10004 that the acting leaders are likely taking their Phone 212-803-8200 AmericanBanker.com cues from officials within the White House and the Treasury Department, giving the Editor in Chief Alan Kline 571.403.3846 Copy Editor Neil Cassidy 212.803.8440 administration greater power to set policy. “The most powerful financial regulator Managing Editor Dean Anason 770.621.9935 Reporters/Producers is [Treasury Secretary] Janet Yellen,” said Jaret Seiberg, managing director at Cowen Executive Editor Bonnie McGeer 212.803.8430 Laura Alix 860.836.5431, Kate Berry 562.434.5432 Washington Research Group. “I would look Miriam Cross 571.403.3834 Washington Bureau Chief Joe Adler 571.403.3832 to her for guidance as to what the regulatory Jim Dobbs 605.310.7780 agencies are going to do.” Executive Editor, Technology Yellen worked with Hsu when was Federal Penny Crosman 212.803.8673 John Heltman 571.403.3847, Allissa Kline 716.243.2679 Reserve chair. Treasury is also a key player Hannah Lang 571.403.3855 in determining the parameters around the Community Banking Editor Paul Davis 336.852.9496 John Reosti 571.403.3864, Gary Siegel 212.803.1560 government’s ownership and eventual release Contributing Editor Daniel Wolfe 212.803.8397 of Fannie and Freddie. Kevin Wack 626.486.2341 “There is a former colleague of hers running For up to date and complete coverage go to AmericanBanker.com MONDAY JULY 12, 2021 AMERICANBANKER.COM PAGE 3 firms that didn’t provide relief to military a senior fellow at the Brookings Institution. not make this loan, because that would mean veterans during the coronavirus pandemic “Time is a precious commodity and much of it he would not get a position with the Trump and signaled a focus on racial equity when he has been wasted without nominees.” administration,” testified Anna Ivakhnik, a took the helm. But Seiberg said that the acting directors former employee at The Federal Savings Bank. “Uejio has been extraordinarily active and working at the agencies enable administration Calk, who stepped down as the $1.08 energetic in changing the agency’s direction,” to craft policy. billion-asset bank’s chairman and CEO in said Naimon. “For this administration, this is a pretty 2019, will not testify in his own defense, one At the FHFA, Thompson, a former official good situation,” said Seiberg.