Trump Issues Fraud Order After Bank Execs Push National Strategy
By Caitlin Mullen, Banking Dive
The president’s order comes a day after industry executives emphasized the need for better coordination among lenders, law enforcement and government at a House subcommittee hearing.
President Trump signed an executive order Friday intended to confront cybercrime and fraud schemes, the day after a House subcommittee hearing detailed a “staggering” fraud problem and how to better address it…
Read moreBicameral Bill Would Create Federal Lending Platform
By Dave Kovaleski, Financial Regulation News
A bipartisan, bicameral bill was introduced this week that would create a government-wide shared services lending platform known as Lending.gov.
The bill, the Federal Loan Systems Modernization Act (S. 3980), would create this platform for borrowers and establish a standardized set of back-end loan management capabilities for participating agencies…
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Why Do Banks Fail? Study Finds Insolvency Is the True Killer
By Nathan Place, American Banker
When people think of a bank failure, they typically picture a crowd of anxious depositors demanding their money back. The bank doesn’t have enough cash to pay everyone at once, so it collapses.
That scenario, a group of scholars says, is far from the whole story — in fact, it’s not even the most important part. While a “run” is often the last thing that happens before a bank fails, it is almost never the root cause, according to a new study published by the National Bureau of Economic Research. The true reason, the researchers say, is almost always insolvency…
Read MoreA Snapshot of the State of Financial Crime in the United States
By Brett Erickson, Compliance Week
Financial crime in the U.S. isn’t just evolving; it is accelerating faster than most institutions can adapt.
This is not theoretical. It is already visible across the industry. Losses continue to rise, sanctions lists are shifting, and enforcement activity is increasing in some areas while declining in others. Institutional capacity, particularly at the governance level, remains stretched thin…
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