Banks want to merge, but they’re not doing deals; Senate poised to vote on Lisa Cook for Fed; CFPB goes after credit card late fees, medical debts

As rates rise and regulators get more aggressive, the tsunami of dealmaking that hit the banking sector last year has abated somewhat in the first quarter of 2022. We’re also tracking the news from Washington, where economist Lisa Cook may soon get a Senate floor vote on her Fed confirmation and the CFPB continues its campaign against what it terms “junk fees” across financial services. Also, credit unions are hiring executives who look like their target markets, and fintechs are competing to help companies reimburse digital-nomad employees’ expenses. Check out what we’re following today.

Why bank M&A is slowing despite a healthy appetite for dealmaking

Rising interest rates and higher regulatory hurdles chilled bank merger and acquisition activity in the first quarter, quelling expectations for continued momentum into this year after a robust 2021.

Fed nominee Cook clears Senate hurdle, setting stage for confirmation

Lisa Cook, a professor of economics at Michigan State University, will advance to a Senate floor vote alongside Federal Reserve Chair Pro Tempore Jerome Powell, current Fed Gov. Lael Brainard and Philip Jefferson, a dean and economics professor at Davidson College.

Surging inflation will allow card issuers to hike late fees: CFPB

“Many credit card issuers have made late fee penalties a core part of their profit model,” CFPB Director Rohit Chopra said. “Given their current practices, we expect that credit card issuers will hike fees, based on inflation, as limits continue to rise.”

Top Republican knocks CFPB for pressuring credit bureaus on medical debt

Speaking during a Senate Banking Committee hearing on medical debt, Sen. Pat Toomey, R-Pa., blamed the Consumer Financial Protection Bureau for a recent decision by the three major credit bureaus — Equifax, Experian and Transunion — to no longer include nearly 70% of medical debt on consumer credit reports. Toomey, the committee's ranking Republican, argued that any action that limits lenders' access to consumer information could be harmful to the financial system.

How credit unions are pushing for change by hiring millennial leaders

“One thing I learned while in business school is if you want to attract your target market, hire your target market and get out of their way … if you represent your target market, it's not difficult to attract and retain them,” said Monica Belz, president and chief executive of Kaua'i Federal Credit Union in Lihue, Hawaii.

Fintechs prep for new complexities of business expense payments

The technology firms TripActions Liquid and Mesh recently introduced corporate expense products that aim to shorten or eliminate steps in how employees report business-related payments and receive reimbursement. The strategies accommodate an emerging business culture in which people travel more often, but still remain largely remote from their employer's central office.

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