The new CFPB rule

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting.

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 »

Pop Goes the Bubble!

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According to the New York Times, the drop in oil prices are dimminishing one of the few big bright spots that banks have enjoyed since the financial crisis. The reason is that banks have been experiencing a lending boom to companies in the nation’s energy industry. Questions: 1. Which banking group has the greatest investment… Read more »

Feds Catch Bid-Rigging Bankers

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Federal authorities are pursuing legal action against bankers accused of systematically defrauding states, local governments and non-profits. The ongoing probe is focusing on bankers who have colluded about the offers they’ve made as they bid on contracts to invest municipal bond proceeds. Questions: 1. What is bid-rigging? Summarize the way in which the suspect bankers… Read more »