A class-action lawsuit accuses student-loan servicer Pennsylvania Higher Education Assistance Agency of missteps that caused borrowers to incur interest and to pay more for loans. Three Illinois plaintiffs want at least $5 million in damages and the creation of Illinois and nationwide classes that are open to people whose loans began in the past 10 years.
US tax cuts will briefly accelerate growth of the global economy but benefits will be short-lived, the International Monetary Fund says in a report presented at the World Economic Forum. The IMF raised its global growth forecast to 3.9% for this year and 2019.
A coming Treasury Department rule will require banks to make more diligent attempts to determine who owns shell corporations, and banks are worried about the compliance costs. Legislative proposals in the House would shift the burden to the Treasury Department by requiring corporations and limited liability companies to file ownership reports with the department.
Financial-services firms have absorbed many regulatory changes in recent years, but banks still lag tech companies in meeting customer demands, finds a report from consulting firm Oliver Wyman. To fend off "tech usurpers," the report says, financial-services providers need to be hiring differently for management positions, "bringing men and women with deeper backgrounds in science, technology, engineering, art and math."
A nomination hearing for Jelena McWilliams, President Donald Trump's pick to lead the Federal Deposit Insurance Corp., is scheduled today before the Senate banking committee. McWilliams, who emigrated from the former Yugoslavia as a minor, is a former congressional staffer and a former staffer of the Federal Reserve.
Consumer Financial Protection Bureau Deputy Director Leandra English is not doing her job and has tried to assert she is the acting director, yet acting Director Mick Mulvaney says he has no intention of firing her, writes The Oklahoman editorial board. "In short, English is feigning to do a job she doesn't hold and refusing to do the job she does have," the editorial board writes, asking, "If that doesn't merit being let go, what does?"
The Federal Reserve Bank of Minneapolis' proposal to increase capital requirements for large banks while reducing regulation is a good starting place, but there is room for improvement, writes Noah Smith. "Capital requirements can be increased gradually instead of all at once, in order to observe the effect on the banking system and backtrack if necessary," he suggests.
Consumer Financial Protection Bureau acting Director Mick Mulvaney's decision to request no funding this quarter from the Federal Reserve indicates he plans to use the directorship's immense power to transform the agency, write attorneys David Rivkin Jr. and Andrew Grossman. They note a lack of accountability because of the agency's single-director structure and say the "power now belongs to Mr. Mulvaney -- and if [former CFPB Director Richard] Cordray had no constraints in his overreach, his successor is equally free to rein it in."
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