Janet Yellen, Chairwoman of the Board of Governors of the Federal Reserve, recently gave a speech that questioned Wall Street’s ethics and culture – and hinted at an overall approach to regulation that should have compliance officers taking note. To quote Ms. Yellen “…the Fed also promotes safety and soundness by seeking to ensure that […]
Category Archives: Current Events
What Compliance Officers Can Learn from JPMorgan Chase
In a recent filing with the Securities and Exchange Commission, JPMorgan Chase reported that it has been questioned by the U.S. Department of Justice regarding possible racial disparities in loans the bank purchased from auto dealers. While the report does not mention whether the bank is the target of the probe or simply participating in […]
Another Lesson in Fair Lending: First United Bank of Texas
Background The First United Bank of Texas (FUB) is a $1.2 billion FDIC regulated subsidiary of Plains Bancorp operating in western Texas (Dimmitt, TX). The FDIC/DOJ investigations found the Bank charged Hispanic applicants 205 basis points (BPs) more than non-Hispanic applicants for unsecured consumer loans. After performing a regression analysis, the basis point differential between […]