Tag: Banking and Financial Institutions

What Private Equity Reveals About the Myth of Free Markets

“It’s hard to separate what’s good for the United States and what’s good for Bank of America,” said its former chief executive, Ken Lewis, in 2009. That was hardly true at the time, but the current crisis has revealed that the health of the finance industry and stock market are completely disconnected from the actual […]

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Federal Reserve Minutes Show a Litany of Reasons to Worry About Economy

WASHINGTON — Some businesses will not make it through the pandemic-spurred economic crisis. Consumer spending will not fully bounce back even into next year. And there is a serious chance of a double-dip downturn that could permanently scar the American labor force. Those are some of the major points from the minutes released Wednesday of […]

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Netflix Moves $100 Million to Black-Owned Banks

Want this delivered to your inbox each day? Sign up here. Netflix’s $100 million plan to boost black lenders We have the first look at a new move to help bridge the racial economic divide in America: Netflix will shift some of its $5 billion in cash to financial institutions that focus on black communities. […]

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China’s National Security Law Wins Business Support

HONG KONG — The business world has largely fallen in line behind China’s campaign to tighten its grip on Hong Kong, including its support for a new national security law that many residents fear will hurt the former British colony’s status as a laissez-faire, freethinking city. Beijing twisted some arms to win that support, hinting […]

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Madeline McWhinney Dale, Trailblazing Banker, Is Dead at 98

In the 1940s and ’50s, when Madeline McWhinney was a young economist at the Federal Reserve Bank of New York, banking was such a men’s club that meetings were often held inside one. At such gatherings at the Union League Club on Park Avenue, which didn’t allow women to join until the late 1980s, Ms. […]

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Behind Wirecard’s Collapse: Allegations of Lies, Spies and Missing Billions

In the elite corridors of corporate Germany, Markus Braun had become a legend. A little-known entrepreneur until just a few years ago, Mr. Braun had forged an obscure Bavarian company called Wirecard into a German tech icon, winning a coveted spot on the benchmark DAX stock index. Wirecard provided the invisible financial plumbing that, with […]

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Banks Should Face History and Pay Reparations

Corporate chief executives have been tripping over themselves to demonstrate their support for racial justice. They’ve taken a knee, tweeted that black lives matter, donated money to advocacy groups and affirmed their commitment to inclusion. That’s all well and good. And following through on their promises — by hiring and promoting more people of color, […]

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A Penny for Your Thoughts Could Be a Lot Harder to Find

WASHINGTON — Randy Graham, the chief executive of the First National Bank of Tennessee, was surprised to learn in mid-June that the Federal Reserve would not be filling his entire order of pennies, nickels, dimes and quarters. The reason: The nation’s coin supply was coming up short. In the latest indication of how the coronavirus […]

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Fed Caps Dividends and Limits Buybacks by Big Banks

WASHINGTON — The Federal Reserve on Thursday temporarily restricted shareholder payouts by the nation’s biggest banks, barring them from buying back their own shares or increasing dividend payments in the third quarter as regulators try to ensure banks remain strong enough to keep lending through the pandemic-induced downturn. The decision to limit payouts is an […]

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Income and Wealth Inequality Has Devastated American Workers

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The Tiny Bank That Got Pandemic Aid to 100,000 Small Businesses

From its address on the west side of the Hudson River to its tiny balance sheet, Cross River Bank is nothing like Manhattan’s Wall Street behemoths. But as part of the government’s efforts to stave off an economic catastrophe, it stands among giants. Cross River has churned out loans to more than 106,000 businesses through […]

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‘There’s Probably Never Been More Uncertainty,’ Fed Official Warns

WASHINGTON — Federal Reserve officials on Friday warned that the outlook for the U.S. economy remains wildly uncertain, and the central bank’s vice chair for supervision explained how those economic risks will be reflected when the Fed releases results next week from its annual test gauging the health of big banks. “We don’t know about […]

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‘Banking While Black’: How Cashing a Check Can Be a Minefield

Clarice Middleton shook with fear as she stood on the sidewalk outside a Wells Fargo branch in Atlanta one December morning in 2018. Moments earlier, she had tried to cash a $200 check, only to be accused of fraud by three branch employees, who then called 911. Ms. Middleton, who is black, remembers thinking: “I […]

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Goldman Sachs Is Said to Try to Avoid Pleading Guilty in 1MDB Scandal

Goldman Sachs is trying to get federal prosecutors to ease up on the bank for its role in a brazen scheme to loot billions of dollars from a Malaysian sovereign wealth fund. Lawyers for the bank have asked Deputy Attorney General Jeffrey Rosen to review demands by some federal prosecutors that Goldman pay more than […]

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What Are Fintechs and How Can They Help Small Business?

This article is part of our continuing Fast Forward series, which examines technological, economic, social and cultural shifts that happen as businesses evolve. Dominick Pietrzak, who owns a film-production company in Brooklyn, was among the small business owners to receive a coveted and potentially forgivable loan in the first round of the Paycheck Protection Program. […]

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Here’s What to Watch at the Fed’s June Meeting

WASHINGTON — The Federal Reserve is widely expected to leave interest rates near zero on Wednesday while pledging to continue buying bonds, but economists are watching for any hint about how the central bank might adjust policy in the longer run. Officials are set to release their first set of economic projections of 2020, having […]

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Federal Reserve June Meeting: What to Watch

WASHINGTON — The Federal Reserve is widely expected to leave interest rates near zero on Wednesday while pledging to continue buying bonds, but economists are watching for any hint about how the central bank might adjust policy in the longer run. Officials are set to release their first set of economic projections of 2020, having […]

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Federal Reserve Releases Economic Projections

WASHINGTON — The Federal Reserve is widely expected to leave interest rates near zero on Wednesday while pledging to continue buying bonds, but economists are watching for any hint about how the central bank might adjust policy in the longer run. Officials are set to release their first set of economic projections of 2020, having […]

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Central Bankers Have Crossed Bright Lines to Aid Economies

As global central banks race to rescue their economies from coronavirus devastation, they are crossing red lines and trying out policies they had never before attempted. They’re probably not done yet. Faced with a crisis unlike any other in memory, central bankers have embarked on new efforts to keep credit flowing and to set the […]

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Central Bankers Have Crossed Bright Lines to Aid Economies

As global central banks race to rescue their economies from coronavirus devastation, they are crossing red lines and trying out policies they had never before attempted. They’re probably not done yet. Faced with a crisis unlike any other in memory, central bankers have embarked on new efforts to keep credit flowing and to set the […]

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Boxed Lunches and Plexiglass Will Welcome Back Wall Street’s Workers

Grab-and-go packaged meals may replace midday generous buffets and three-figure lunches. Plexiglass could divvy up trading floors the size of football fields. Heat maps, accessible on a mobile app, will help identify the restrooms with the smallest crowds. But when Wall Street reopens its doors to employees, the talent will only trickle in. New York […]

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‘Corporate America Has Failed Black America’

In the past week, it has seemed like every major company has publicly condemned racism. All-black squares cover corporate Instagram. Executives have made multimillion-dollar pledges to anti-discrimination efforts and programs to support black businesses. Yet many of the same companies expressing solidarity have contributed to systemic inequality, targeted the black community with unhealthy products and […]

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To Reach a Single A.T.M., a Line of Unemployed Stretches a Block

The line started small about two months ago with a handful of people who had recently been laid off. But now, nearly three months into the economic crisis, which has claimed more than 40 million jobs nationwide, it stretches 50 or 60 people long throughout the day and down almost an entire Manhattan block. They […]

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Tenants’ Troubles Put Stress on Commercial Real Estate

In the middle of March, as Covid-19 was shutting down the U.S. economy, Hughes Marino, a West Coast commercial real estate brokerage firm based in San Diego, wrote an email to clients offering to haggle with their landlords for lower rent. The firm was ready to help companies “restructure their leases as rents collapse,” it […]

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Regulators May Punish Deutsche Bank for Its Jeffrey Epstein Ties

Banking regulators have spent months investigating Jeffrey Epstein’s dealings with Deutsche Bank, which lent money to the disgraced financier and held dozens of accounts for him until shortly before he died, according to four people briefed on the matter but not authorized to speak publicly. The investigation by the New York Department of Financial Services, […]

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Poor Countries Face a Debt Crisis ‘Unlike Anything We Have Seen’

From Angola to Jamaica to Ecuador to Zambia, the world’s poor countries have had their finances shredded by the global pandemic. The president of Tanzania has called on “our rich brothers” to cancel his country’s debt. Belarus veered toward a default when a promised $600 million loan from Russia fell through. Russia couldn’t spare the […]

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Beijing Threatens Hong Kong’s Companies and Workers

HONG KONG — China and its allies are using threats and pressure to get business to back Beijing’s increasingly hard-line stance toward Hong Kong, leading companies to muzzle or intimidate workers who speak out in protest. Leung Chun-ying, Hong Kong’s former top leader, on Friday called for a boycott of HSBC, the London bank, because […]

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Bank Regulator’s Battle With Anti-Redlining Law Comes to an End

Joseph Otting came into his job overseeing the nation’s biggest banks in late 2017 determined to rewrite the rules governing how financial institutions invest in poor communities. A former banker appointed by President Trump, Mr. Otting had long chafed at the rules. So as Comptroller of the Currency, he wasted little time seeking the support […]

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Dismal Earnings, Bullish Stock Investors and the Fed’s Invisible Hand

Wall Street analysts have grown increasingly pessimistic in recent weeks about the outlook for corporate profits, even as investors have pushed markets steadily higher, breaking the link between analyst forecasts and the direction of stock prices. Most companies in the S&P 500 stock index have reported their first-quarter earnings, and the impact of the coronavirus […]

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Goldman Sachs Forecloses on 10,000 Homes for ‘Consumer Relief’

To make amends for its part in the collapse of the housing market during the 2008 financial crisis, Goldman Sachs promised $1.8 billion in consumer relief to struggling homeowners. That penance was also a business opportunity. Four years after agreeing to help homeowners in a civil settlement with federal prosecutors, the Wall Street firm has […]

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