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Federal Reserve governor Michelle Bowman recently became the first central bank governor to dissent against a policy decision favored by the Fed chair since 2005. While the Fed voted to cut rates by a half point, Bowman supported a smaller rate cut, expressing concerns that a larger cut could be seen as a premature victory over inflation. Bowman believes that a slower pace of rate cuts would be more appropriate to avoid unnecessarily stoking demand. This dissent is significant as it is the first time in 19 years that a governor has cast a dissenting vote. [Extracted from the article]

Chinese leader Xi Jinping has warned his country of more economic challenges in the coming year, as weak economic data continues to highlight the difficulties facing China's economy. Xi emphasized the importance of the economy to the country's political priorities and promised efforts to support growth and address concerns over jobs and the cost of living. Recent data showed that factory activity and the services sector in China continued to contract in December, indicating a sluggish end to the year for the world's second-largest economy. Despite pledges of new fiscal stimulus and supportive central-bank policy, experts predict that China's growth will not collapse but will also not reaccelerate significantly. [Extracted from the article]

Consumer prices in China have fallen for the second consecutive month, indicating that the government's efforts to stimulate economic growth are not succeeding. China's leaders have promised additional fiscal stimulus and supportive central bank policies, but they have also indicated that the stimulus will be measured rather than aggressive. Weak inflation figures, declining exports, and a property slump suggest that China's economy is losing momentum. The deflation in China is a result of weak consumer spending and excess supply, and it has led to trade tensions with the US and EU. Economists warn that prolonged deflation could harm corporate profits and employment. [Extracted from the article]

The article states that the U.S. central bank the Federal Reserve (Fed) awarded U.S. bank Bank of America Corp. (BofA) with a passing grade on a stress test on December 10, 2015, while stating that BofA needed to continue making progress in its capital planning. According to the article, the Fed permitted BofA to continue paying dividends and buying back shares of stock as part of a $4 billion repurchase plan.

The article states that the U.S. central bank the Federal Reserve (Fed) was attempting to restructure its methods for overseeing annual bank stress tests as of early December 2015 in order to hold itself to the same standards it demands from financial institutions.

The article states that U.S. government central bank the Federal Reserve (Fed) and U.S. government agencies the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corp. (FDIC) initiated strict regulations on leveraged loans that generate profit for major banks following the financial crisis of the early 21st century. According to the article, banks and government regulators have fought over the proper financial system protections against another crisis.

The article states that British bank Barclays PLC agreed to pay a $150 million fine in order to settle an investigation conducted by the New York State regulatory agency the Department of Financial Services (DFS) concerning a trading practice known as the last-look veto that sometimes hurt Barclays clients but ensured profitability for Barclays in its foreign-exchange business. According to the article, DFS required Barclays to dismiss its global head of electronic fixed income, currencies and commodities automated flow trading.

The article discusses the potential impact of a rule concerning what is termed total loss-absorbing capital (TLAC) set to be proposed on October 30, 2015, by the U.S. central bank the Federal Reserve (Fed) on San Francisco, California, bank Wells Fargo & Co. According to the article, Wells Fargo may be required to raise about $26 billion in long-term debt. The article presents comments from Wells Fargo vice chairman Paul Ackerman.

The article discusses deliberation among the board of directors of British banking and financial services firm HSBC Holdings PLC on whether to keep the company headquartered in London, England, as of the end of October 2015. According to the article, a significant consideration was whether HSBC would enjoy less political and regulatory pressure in a larger economy. The article states that HSBC moved its headquarters from Hong Kong to London in 1993.

The article states that U.S. Comptroller of the Currency Thomas Curry indicated in a speech on October 21, 2015, that his bureau would be scrutinizing banks that provide auto financing. According to the article, Curry's remarks would concern banks regulated by the comptroller's office such as Wells Fargo & Co. The article also states that the U.S. agency the Consumer Financial Protection Bureau issued concerns about excessive consumer auto debt in March 2015. The article presents comments from Curry.

The article states that several large U.S. banks such as Boston, Massachusetts, bank State Street Corp. and New York bank J.P. Morgan Chase & Co. were charging customers fees for large dollar deposits as of mid-October 2015 in an effort to discourage such deposits and increase profitability. According to the article, such actions were a result of low interest rates and U.S. government regulations implemented since the financial crisis of the early 21st century.

The article states that British central bank the Bank of England (BOE) announced on October 15, 2015, that large British banks such as Barclays PLC, HSBC Holdings PLC, and Lloyds Banking Group PLC would be required to separate retail operations from investment-banking operations by 2019. According to the article, the Bank of England stated that retail operations conducting what is known as ring-fencing would be required to hold extra capital in order to cover the risk of operations.

The article discusses the dismantling of the U.S. conglomerate General Electric Co. (GE) financial unit GE Capital. According to the article, GE chief executive Jeffrey Immelt decided early in 2015 to shed GE Capital and the GE board of directors agreed to do so in an April 2, 2015, vote. The article states that GE Capital announced in October 2015 that it would sell a significant part of GE Capital to the bank Wells Fargo & Co. It also discusses the impact of U.S. financial legislation on GE Capital, including oversight by the U.S. central bank the Federal Reserve (Fed).

The article states that revenue at New York bank J.P. Morgan Chase & Co. declined by seven percent during the third-quarter of 2015 and its overall assets fell by $160 billion in the six months ended September 30, 2015. According to the article, the bank, led by chairman and chief executive James Dimon, was deliberately shrinking and simplifying in order to prepare for U.S. central bank the Federal Reserve (Fed) surcharges on larger banks.

The article states that former U.S. secretary of state and 2016 U.S. presidential candidate Hillary Clinton proposed in early October to impose a risk fee on banks with over $50 billion in assets such as J.P. Morgan Chase & Co., Citigroup Inc., and Bank of America Corp. According to the article, Clinton argued that such a fee would be designed to prevent risk-taking by banks not subject to government oversight. The article discusses the financial proposals of Clinton opponent for the presidential nomination of the U.S. political party the Democratic Party U.S. senator Bernie Sanders.

The article states that German bank Deutsche Bank AG said in early October 2015 that it would take a $6.5 billion charge on assets in its investment bank and retail-and-private banking units for the third quarter of 2015. According to the article, Deutsche Bank expected to report a loss of €6.2 billion when reporting third-quarter results on October 29, 2015. The article discusses the struggles of European banks as a result of slow domestic economic growth and governmental regulations in Europe and the U.S. The article discusses the leadership of Deutsche Bank co-chief executive John Cryan.

The article cites information from the data provider Bankrate Inc. to state that the average cost for an individual using an automated teller machine (ATM) unaffiliated with that individual's bank in the U.S. rose to $4.52 in 2014. The article also states that average costs were over $5 in cities such as New York City and Atlanta, Georgia. According to the article, the hike in costs was due to regulatory and consumer advocacy pressure on banks to reduce other fees and a decrease in the use of ATMs. The article presents comments from Bankrate senior financial analyst Greg McBride.

The article states that the U.S. agency the Treasury Department Financial Crimes Enforcement Network (FinCEN) was set to propose rules as of early August 2015 that would force some hedge funds and other large money managers to adopt money-laundering controls. According to the article, a draft of the rules proposal was approved by the agency the White House Office of Management and Budget (OMB) in July 2015.

The article discusses internal dissension within the Canadian bank the Royal Bank of Canada (RBC) concerning its business affiliation with Miami, Florida, investor and former Brazilian senator Gilberto Miranda Batista amid allegations concerning money laundering on the part of Miranda Batista. According to the article, U.S. banking regulation organization the Office of the Comptroller of the Currency (OCC) determined that RBC's anti-money-laundering controls were unsatisfactory in 2013. The article also discusses scrutiny of a trust set up for Miranda Batista's family.

The article states that German financial regulator BaFin told former German bank Deutsche Bank AG co-chief executive Anshu Jain that he was no longer suspected of purposely misleading German central bank officials during a 2012 investigation concerning market manipulation in a July 15, 2015, letter signed by BaFin president Felix Hufeld. According to the article, BaFin issued a May 11, 2015, letter in which it attacked the culture of Deutsche Bank and pointed out suspicions concerning Jain's alleged misleading of regulators.

The article discusses rules issued by the U.S. central bank the Federal Reserve (Fed) on July 21, 2015, that warned the eight largest U.S. banks about their size and risk-taking. According to the article, one Fed rule stated that the banks should maintain additional capital to protect against losses. The article also states that the Fed offered the finance unit of the U.S. conglomerate General Electric Co. (GE) a reprieve from additional regulation following GE's vow to cut its assets. The article states that the rules reinforce the U.S. legislation known as the Dodd-Frank law.

The article presents excerpts of an interview with former U.S. senator Christopher Dodd and former U.S. representative Barney Frank in which they discuss the U.S. financial legislation they co-sponsored known as Dodd-Frank. They discuss the significance of the organization the Financial Stability Oversight Council (FSOC), regulation of the U.S. banking industry, and the implementation of Dodd-Frank.

The article discusses remarks made by U.S. central bank the Federal Reserve (Fed) chairwomen Janet Yellen before the U.S. Senate Banking Committee on July 16, 2015, concerning her support for a slight increase in the $50 billion threshold by which banks qualify for Fed supervision as mandated by the 2010 U.S. legislation known as the Dodd-Frank law. It discusses support for an increase in the threshold from banks including Zions Bancorp, Huntington Bancshares Inc., and Regions Financial Corp. The article also discusses legislation proposed by U.S. senator Richard Shelby.

The article states that the U.S. central bank the Federal Reserve (Fed) faulted Spanish bank Banco Santander SA for failing to meet Fed standards concerning a host of the bank's business operations on July 7, 2015. According to the article, the Fed found deficiencies in Santander's management of its capital, daily funding, and corporate governance. The article states that the Fed did not fine Santander but reserved the right to do so at a later date as part of an agreement with the bank, while also requiring the bank to submit remedial plans.

The article states that the U.S. bank J.P. Morgan Chase & Co. was negotiating with the U.S. government agency the Securities and Exchange Commission (SEC) concerning a settlement over allegations that J.P. Morgan guided clients to its proprietary products as opposed to similar products offered by other organizations as of June 2015. The article states that an inquiry was initiated by the U.S. government agency the Office of the Comptroller of the Currency (OCC).