Banking & Finance

Fed’s proposal for faster payments raises question of fraud
‘FedNow’ won’t be available for four years, but how will it handle unauthorized payments?

The Federal Reserve expects to launch a real-time payment service in four years. Fintech experts are already questioning how it will handle fraud. (Caroline Brehman/CQ Roll Call file photo)

The Federal Reserve’s announcement last month that it would compete with private industry to launch a 24-hour-a-day real-time payment service has fintech experts raising an alarm: How will it handle fraud, which they say is inevitable with any financial system.

The Fed’s real-time gross settlement service, to be known as “FedNow,” is not scheduled to be available for at least four more years. Yet some financial services attorneys are already pondering who should bear the loss if it processes unauthorized payments.

Capitol Ink | Tax Cuts R Us

Fintech Beat explores the ABC's of fintech investing
Fintech Beat, Ep. 19

Stock market data growth chart graph investment finance analysis fintech financial district

Comedian Hasan Minhaj rankles, entertains at student debt hearing
Congressional hearings can be dry but not today

Things got a little testy between Rep. Sean Duffy, seen here, and Hasan Minhaj at Tuesday's hearing. (CQ Roll Call Screenshot)

You may not think a hearing on solving the $1.6 trillion student loan debt crisis would provide many laughs, but comedian Hasan Minhaj racked up a few, to the annoyance of some Republicans, while testifying before the House Financial Services Committee.

Tuesday’s hearing wasn’t short on tense exchanges, either, even from the jump.

Fintech Beat explores a new way of investing in real estate
Fintech Beat, Ep. 18

A for sale sign advertising a row house on Constitution Avenue, NE, is pictured on Monday, August 26, 2019, in Washington D.C. (Photo By Tom Williams/CQ Roll Call)

The Comptroller of the Currency
Fintech Beat, Episode 17

Joseph Otting, Comptroller of the Currency, prepares to testify during a House Financial Services Committee hearing in Rayburn Building titled "Financial Industry Regulation: the Office of the Comptroller of the Currency," on June 13, 2018. (Photo By Tom Williams/CQ Roll Call)

Fintech Beat explores the relationship between hip-hop and crypto
Fintech Beat podcast, Ep. 16

Grammy award winning hip hop star T.I. (a.k.a. Clifford Joseph Harris Jr.) talks to the media as he arrives on the "green carpet' at the 9:30 Club to participate in the Hip Hop Caucus' event to launch their get out the vote campaign on Monday, July 28, 2008.

Elizabeth Warren is blasting Wells Fargo over fees, again
Latest criticism is over fees charged to allegedly closed accounts

Democratic presidential candidate and Sen. Elizabeth Warren is again criticizing Wells Fargo (Caroline Brehman/CQ Roll Call file photo)

Sen. Elizabeth Warren has another complaint about Wells Fargo.

This week, the Massachusetts Democrat and 2020 presidential candidate is taking issue with the bank allegedly charging fees on accounts that customers had believed to be closed.

Justice Department sides with Trump in subpoena fight
Lawmakers have not done enough to say why they need president's financial records, administration argues

President Donald Trump filed the suit seeking to prevent his accounting firm, Mazars USA, from complying with a House subpoena for his financial records. (Caroline Brehman/CQ Roll Call file photo)

The Justice Department sided with President Donald Trump on Tuesday in his fight to stop a congressional subpoena for eight years of his financial records, telling a federal appeals court that lawmakers had not done enough to say why they need the information.

“The House’s lack of responsibility is sufficient reason for this Court to declare this subpoena invalid,” the DOJ wrote in a brief in the U.S. Court of Appeals for the D.C. Circuit.

GOP senators uneasy with Fed pick on gold, deposit insurance
Questioning a return to the gold standard and eliminating federal deposit insurance

“I'm not convinced we should switch to a gold standard anytime soon,” said Sen. Patrick J. Toomey, R-Pa., (File photo by Bill Clark/CQ Roll Call)

Republican senators have expressed concerns about Judy Shelton, one of President Donald Trump’s picks for the Federal Reserve Board, over her support for a return to the gold standard and eliminating federal deposit insurance, but, so far, are holding back from publicly opposing her nomination.

Trump tweeted his intention in early July to nominate Shelton and Christopher Waller to the two vacant seats on the seven-member Fed board. Waller, an economist at the Federal Reserve Bank of St. Louis, is seen by most observers as a conventional pick, but Shelton’s decades-long advocacy for resurrecting the Bretton Woods monetary system has put her at odds with most economists and some Republican senators. The system pegged the dollar to the price of gold and other currencies to the dollar.