Wells Fargo CEO apologizes for saying there was a 'very limited pool of Black talent'
Wells Fargo CEO Charlie Scharf apologized Wednesday for a remark he made in June about the talent pool of senior Black banking executives that set off a wave of criticism when the quote resurfaced Tuesday.On June 16, as the country was engulfed in protests over the police killing of George Floyd in Minneapolis, Scharf sent a memo to the bank’s roughly 250,000 employees outlining a set of changes that he said would help improve the firm’s diversity.If executives like Scharf didn’t meet new goals to hire a diverse workforce, their pay would be docked. It was one of the first major financial inst...
The Charlotte Observer
The necessary alliance: Banking and fintech
The use of technology to facilitate finan- cial offerings, commonly known as fintech (financial technology), has been around for a while, but has gained renewed focus in recent years, in turn impacting the finan- cial ecosystem. Banks across the world have been pushed to adopt digitalisation as a key element for their continuity plansand collaborate with third-party service providers for accessi- ble reform, greater outreach, and longevity. Similarly, regional banks have been forced to acknowledge that fintech will drive change in terms of customer service and product innovation.In the UAE, Em...
Delta to turn down CARES Act loan, take on debt backed by SkyMiles
ATLANTA — Delta Air Lines will turn down a federal loan through the CARES Act and instead take on debt backed by its SkyMiles frequent flier program.The move allows Atlanta-based Delta to avoid surrendering more control in return for new federal money. It also highlights the airline’s ability to tap capital markets and the continued popularity of credit cards offering frequent flier miles despite a steep drop in air travel.Delta got $5.4 billion in federal aid through the CARES Act passed by Congress, and had signed a letter of intent giving it the option of also taking a $4.6 billion loan thr...
The Atlanta Journal-Constitution
Susan Tompor: Get a game plan for paying student loan debt in 2021
September is traditionally a time for back to school and, even in a time of COVID-19 restrictions, September was to be the month when student loan payments got back on track.Well, like a lot of things, we’re looking at yet another new game plan here. And it’s one that savvy consumers might be able to use to their advantage.Borrowers across the country began receiving notices in April from their federal student loan servicers about temporary 0% rates and a pause in payments. No payments were due, which theoretically offered some relief to tight budgets as wages were cut and jobs were lost durin...
Detroit Free Press
Detroit man pleads guilty in $590,000 coronavirus fraud scheme
DETROIT — A Detroit man has pleaded guilty for his role in weaving a $590,000 coronavirus fraud scheme, according to a release from the Department of Justice.Darrell Baker, 56, pleaded guilty to counts of bank fraud and money laundering Friday after intentionally attempting to defraud a Pennsylvania bank under the guise of a loan under the Payroll Protection Program, which was established to help small businesses weather the pandemic.Baker was approved for a $590,000 loan for his company, “Motorcity Solar Energy, Inc.,” through Customers Bank in Pennsylvania. In his application documents, Bake...
Detroit Free Press
Ex-Jets receiver Josh Bellamy charged with COVID relief fraud
A former New York Jets wide receiver had sticky hands — for COVID relief funds, prosecutors charged Thursday.Federal authorities in South Florida announced they’d intercepted Josh Bellamy’s scheme with 10 others to file at least 90 fraudulent loan applications seeking more than $24 million.Bellamy, who was officially released from the Jets Tuesday, obtained a loan of $1,246,565 for his company, Drip Entertainment LLC, from a federal relief program for small businesses impacted by coronavirus. The money was intended only for job retention and certain other expenses, but Bellamy allegedly splurg...
New York Daily News
AI In Banking: Detecting Fraudulent Transactions
AI in Banking: CEO of Fraud Management Solution Speaks About Working with 15 Top US BanksQ2 2020 hedge fund letters, conferences and moreVisa unveiling its powerful AI tool that approves/denies card transactions clearly reflects the growing use of AI in banking. As we turn to deep-learning applications to makes more accurate decisions on behalf of banks experiencing network disruptions, DataVisor, an advanced fraud management solution who is working with 15 of the top banks in the US shares his thoughts.The Advantages Of Using AI In BankingYinglian Xie is CEO and Co-Founder of DataVisor says:"...
After collapsing in the spring due to COVID-19, remittances to Latin America bounce back
Springtime job losses and pay cuts in South Florida’s immigrant communities meant many local immigrants had to stop sending money to relatives in their homelands.After the coronavirus outbreak snowballed into a global pandemic, the World Bank in April projected remittances to Latin America and the Caribbean would drop by nearly 20% this year — the sharpest decline in recent history.But as the Miami metropolitan area and other U.S. regions with significant Latin American populations emerged from COVID-19 lockdowns, remittance flows have started ticking back up. That’s the takeaway from a new Pe...
Quicken Loans' parent Rocket Companies shows $3.4B profit in first earnings report
Detroit-based Rocket Companies, the new publicly traded firm that includes Dan Gilbert’s Quicken Loans, announced a massive profit Wednesday in its first earnings report since its IPO last month.Rocket reported net income of $3.4 billion in the second quarter that ended June 30, compared to a net loss of $54 million during the same three-month period last year.The company also did a record $72.3 billion in closed loans, which was 126% more than the same period in 2019.Rocket closed Wednesday at $31.30, up about 2%.“Record low interest rates are driving demand for home loans,” Rocket Companies ...
Detroit Free Press
Par Funding threatened violence, trashed reputations after businesses took out loans at brutal interest rates, borrowers say
When two beefy men cornered Dwayne Stewart in a Wawa parking lot in Pennsauken, N.J. last year, he was worried. But he never dreamed it could be related to his business loan.In 2019, he and his partner had borrowed roughly $50,000 from a Philadelphia cash-advance lender, Par Funding, to keep their small transportation business afloat.When the lender said they fell behind in payment, the firm declared them in default and unexpectedly froze $29,000 in his partner’s business bank account. Sums of $200 to $300 a day began disappearing from Stewart’s own accounts, withdrawn by Par Funding without h...
The Philadelphia Inquirer