"Rule-making by enforcement" at the Consumer Financial Protection Bureau is expected to slow if Director Richard Cordray resigns to run for Ohio governor. Pending rules involving payday loans, debt collection and overdrafts could be stopped by a director appointed by President Donald Trump.
President Donald Trump has dissolved two business councils after CEOs kept withdrawing to protest his comments about a deadly confrontation in Virginia. Eight executives of major companies left the American Manufacturing Council and the Strategic and Policy Forum.
PIMCO has joined a growing number of asset managers in announcing that it will bear the cost of analyst research fees, rather than passing that cost on to its clients. The unbundling and transparent reporting of research costs will be a requirement of Europe's forthcoming Markets in Financial Instruments Directive II, and institutions including JPMorgan Asset Management and Vanguard have announced the same policy decision.
A report from the Consumer Financial Protection Bureau finds a deepening student-loan debt crisis, with total debt rising to more than $1.4 trillion, 40% of borrowers graduating with debts of $20,000 or more, and the number of borrowers with debts of more than $50,000 having tripled between 2002 and 2014. Income-driven repayment plans are one way to shrink the size of required repayments, but fewer than 50% of eligible borrowers take advantage of them, the report says.
Nearly 50% of student-loan borrowers owe $20,000 or more when they leave school, up from 20% 15 years ago, according to an analysis by the Consumer Financial Protection Bureau. Almost 25% of those owing less than $20,000 do not pay enough to reduce principal five years into repayment, the analysis finds, and more than 50% of such borrowers default or become delinquent.
Speculation that Director Richard Cordray will leave the Consumer Financial Protection Bureau to run for Ohio governor has lobbyists predicting a payday industry rule will be finalized by Labor Day. The rule, proposed in June 2016, would require lenders to document borrowers' ability to repay or offer longer loan terms.
Zillow says the Consumer Financial Protection Bureau has concluded a two-year investigation into advertising practices and has asked the online real estate marketer to settle or to face legal action. The CFPB is questioning "co-marketing" arrangements between real estate agents and mortgage lenders.
JPMorgan Chase has hired machine learning expert Chris Murray, formerly of Goldman Sachs, to improve trading efficiency, sources say. Murray reportedly aids management of the global central risk book.
Pennsylvania Attorney General Josh Shapiro has created a unit similar to the Consumer Financial Protection Bureau, with former CFPB staffer Nicholas Smyth at the helm. Other states might "jump on the bandwagon" and follow suit, says David Kennedy, vice president and director of compliance at the American Recovery Association.
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