New York's Deutsche Bank settlement shines spotlight on Jeffrey Epstein's murky finances
WASHINGTON — After decades of secrecy, Jeffrey Epstein’s finances are coming into clearer view with the arrest of his onetime girlfriend and longtime associate, Ghislaine Maxwell, and Tuesday’s announcement that Deutsche Bank will pay $150 million in penalties in part because of its relationship with the disgraced financier.The New York Department of Financial Services announced Tuesday that it had entered into an agreement with Deutsche Bank, which acknowledged years of shoddy handling of Epstein’s finances, ignoring his 2008 conviction and settlement of multiple lawsuits alleging sexual abus...
Quicken Loans files paperwork for IPO under name Rocket Companies
DETROIT — Quicken Loans, the nation’s largest mortgage lender, has filed paperwork with the U.S. Securities and Exchange Commission to move forward with taking the company public under the name Rocket Companies.Although the Detroit-based company has not yet announced the number or price of shares that would be offered on the New York Stock Exchange, experts have speculated an initial public offering by Quicken could raise tens of billions of dollars. No date was given for the proposed IPO.Under the proposal made public Tuesday, Quicken founder Dan Gilbert would retain a controlling stake in Ro...
The Detroit News
Analyst: 20,000 bank branches — or more — could close after COVID-19
U.S. bank branches have been closing at the rate of more than three a day for the last 10 years, according to the Federal Deposit Insurance Corp.They should be closing faster, some analysts say.“Given the shelter-in-place orders, the COVID-19 pandemic has accelerated mobile adoption,” with teller transactions down “30 to 40 percent” this year, as bank-by-phone replaces standing in the teller line, according to a report to clients by Michael Perito, regional bank analyst for Keefe Bruyette & Woods, a New York investment bank.Americans have been banking by phone at accelerating rates for 15 year...
The Philadelphia Inquirer
Deutsche Bank pays $150 million fine for failing to monitor Jeffrey Epstein accounts
Deutsche Bank was slapped with a $150 million penalty Tuesday for failing to monitor Jeffrey Epstein’s accounts even though he faced widespread sex trafficking allegations.The troubled German bank did not scrutinize hundreds of transactions totaling millions of dollars by Epstein between 2013 and 2018 despite clear warning signs they could be linked to crimes, New York state’s Department of Financial Services said.“Banks are the first line of defense with respect to preventing the facilitation of crime through the financial system, and it is fundamental that banks tailor the monitoring of thei...
New York Daily News
How COVID-19 is accelerating the shift to a cashless society
PHILADELPHIA — Tom Ivory, the founder of the Baker Street Bread Co. in Philadelphia’s Chestnut Hill section, fought a valiant effort for years to rein in bank fees by imposing a minimum credit card purchase of $10. But more customers wanted to go cashless, and Ivory eventually relented and accepted plastic for any transaction, no matter how small.About 78% of the purchases at the cafe and store are now paid through credit cards or other electronic transfer — up from 10% just five years ago.“You have to keep up with technology,” Ivory said. “To operate as just a cash business today is a suicide...
The Philadelphia Inquirer
Minneapolis Fed finds small businesses take deepest cuts to sales from pandemic shutdowns
The pandemic has dealt a particularly large blow to smaller businesses, to women and minority-owned businesses, and to sectors such as entertainment, lodging and retail.Those are some of the findings of a May survey of nearly 1,100 businesses across Minnesota and in neighboring states conducted by the Federal Reserve Bank of Minneapolis.“The main takeaway is that COVID effects have been very wide and very deep and negative, but there’s also variation across those groups,” Ron Wirtz, regional outreach director, said during a webinar Tuesday on the impact of the pandemic on the economy.He noted ...
Star Tribune (Minneapolis)
Wells Fargo expects dividend cut as coronavirus roils financial system
Wells Fargo expects it will shrink its dividend when it announces second-quarter earnings in July, the San Francisco-based bank said Monday.It will be the bank’s first dividend cut since the financial crisis.The move came after the Federal Reserve released the results of its annual stress tests of the country’s largest banks Thursday, in which it barred them from buying back their own stock or increasing dividend payouts to shareholders in the third quarter.Despite the restrictions, the regulator said that banks were generally still well-capitalized during the economic downturn caused by the c...
The Charlotte Observer
Coronavirus fallout: Is commercial real estate headed for a crash?
SAN DIEGO — Within the next week, David Marino will list nearly 300,000 square feet of sublease office space in San Diego’s Sorrento Mesa neighborhood that current tenants no longer need.For Marino, a principal at the Hughes Marino commercial real estate brokerage firm that specializes in representing tenants, these subleases are an early wave of what he expects to be a tsunami of unwanted office space flooding the market in coming months in the wake of COVID-19 shutdowns.Social distancing, plunging revenue and layoffs already have wreaked havoc on certain commercial real estate sectors, such ...
The San Diego Union-Tribune
Some employees will get a day off Friday to observe Juneteenth, in the wake of George Floyd's death. 'I don't think that companies knew until now.'
Juneteenth largely has been just another work day at most companies — until now.In the wake of George Floyd’s death at the hands of police and the demands for racial equality that have followed, many employers will be marking the day on Friday — by closing offices and giving employees a paid day off.Juneteenth, also known as Emancipation Day, marks June 19, 1865, the day Major General Gordon Granger arrived in Galveston, Texas, to announce the end of the Civil War and slavery. The day came more than two years after the Emancipation Proclamation was issued, granting freedom to slaves, but slave...
The Week Ahead: Moving from rescue to recovery
After a flurry of unprecedented actions as the COVID-19 pandemic locked down the U.S. economy, the Federal Reserve has been more characteristically quiet in recent weeks. It may have disappeared from the daily headlines, but the central bank remains central to the recovery in the stock market and beyond.The Fed launched its economic rescue mission in mid-March, first by cutting its target interest rate to zero. It also returned to buying bonds to help provide liquidity to the credit markets. Those were just the first of what expanded into nine additional strategies designed to keep the America...