Posts Tagged: banking industry

A New Report on Artificial Intelligence

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Financial Accounting, Managerial Accounting, Uncategorized.

According to Fortune, McKinsey Global Institute’s new report looks at 63 potential use cases for artificial intelligence (AI) and predicts that generative AI might add between $2.6 to $4.4 Trillion (with a T) to the global economy. Questions (from the report): Source: Murray, A. and N. Gordon. (2023) Generative A.I. could add $4.4 trillion to… Read more »

Bank Vulnerability

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Washington Post, a new study shows that hundreds of banks in the United States would be in danger of failing if they were hit by runs similar to the one that recently brought down Silicon Valley Bank. Questions: Source: Werner, E. (2023). Hundreds of banks would be vulnerable in SVB-style runs, researchers… Read more »

Watch this FDIC development

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting.

According to Bloomberg, Amazon, Facebook, Walmart and other corporate giants may soon give Wall Street a run for its money as a key U.S. regulator smooths the path for nonbanks to get into lending. Questions: Why is the banking industry against this? List at least two reasons. What is the loophole that the article talks… Read more »

Strategic Differences

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HSBC announced that CEO, John Flint, was leaving the bank after only 18 months in the role.  Questions: What issues is Europe’s biggest bank grappling with currently? What specific strategic reason does the Board give for his departure?  What is the revenue risk that HSBC faces? Source: Reuters Staff. (2019). HSBC CEO John Flint leaves… Read more »

The new CFPB rule

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On July 10, the Consumer Financial Protection Bureau (CFPB) issued a controversial rule to prevent companies from using arbitration clauses to stop litigation over customer complaints. Questions: 1. Many of these clauses have been related to credit card or banking customer contracts. If consumers don’t agree with the arbitration, why haven’t they filed class action… Read more »

$35 here, $35 there and it all adds up!

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While strict rules require account holders to affirmatively opt into banking overdraft protection plans, a U.S. subsidiary of the Spanish banking giant, Santander Bank, which acquired Boston-based Sovereign Bank in 2009, crossed the line. Questions: 1. Briefly summarize what the bank did? 2. Who is the Consumer Financial Protection Bureau and what was their role… Read more »

Phased out in your lifetime????

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According to the New York Times, millions of customers at such banks as Bank of America, JPMorgan Chase, and Wells Fargo, currently log into their bank accounts through their mobile phones using their fingerprints. Introduced in the last few months, this feature enables a huge share of American banking customers to verify their identities with… Read more »

Plan Ahead

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According to the Washington Post, five of the country’s largest banks, including JPMorgan Chase and Bank of America, still do not have credible plans for winding down their operations without taxpayer help if they start to fail. Questions: 1.How long do these banks have to submit their detailed bankruptcy plans to requlators? 2. What are… Read more »

When Will They Ever Learn?

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Bank of America (BoA) is in the news again. This time, Bank of America must pay a $30 million fine after a financial regulator found numerous violations related to the accounts of 73,000 military service members. Questions: 1. What actions did the bank take against military service members that were illegal? 2. What steps did… Read more »

Credit Unions for Pot?

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Since medical marijuana was legalized in Colorado in 2001 and recreational marijuana was legalized a year ago, sellers have had limited, if any, access to banking services. As a result, a group of other entrepreneurs in Colorado want to start the first-ever financial institution established specifically to serve the pot industry. Questions: 1. What are… Read more »