<ul class="summary-list"><li><keyword id="12395940" type="UNKNOWN" weightage="60" keywordseo="fdic" source="Orion">FDIC</keyword> Chairman <keyword id="12861698" type="UNKNOWN" weightage="60" keywordseo="jelena-mcwilliams" source="Orion">Jelena McWilliams</keyword> will step down from her role effective February 4, <a href="https://www.politico.com/news/2021/12/31/fdic-chair-jelena-mcwilliams-to-resign-526295">per Politico</a>.</li><li>McWilliams, who was appointed by former President Trump, will leave before her term ends in 2023.</li></ul><keyword id="12861699" type="UNKNOWN" weightage="60" keywordseo="federal-deposit-insurance-corporation" source="Orion">Federal Deposit Insurance Corporation</keyword> Chairman Jelena McWilliams <a href="https://www.fdic.gov/news/press-releases/2021/pr21107.html">announced</a> on Friday that she would step down from the post after clashing with Democratic regulators over the agency's direction, a move that will give President Joe Biden greater influence over US banking policy, <a href="https://www.politico.com/news/2021/12/31/fdic-chair-jelena-mcwilliams-to-resign-526295">according to Politico</a>.McWilliams, a native of Yugoslavia who was appointed by former President Donald Trump to a five-year term in June 2018, said in a letter to Biden that her resignation would be effective February 4. In the document, she made no reference to infighting among the board.Her departure will allow for FDIC board member Martin Gruenberg to become the acting chair — which would be his third time leading the 88-year-old agency that insures trillions of dollars of deposits in US banks.McWilliams' term was not set to end until June 2023."When I immigrated to this country 30 years ago, I did so with a firm belief in the American system of government," said McWilliams in her letter to the president. "During my tenure at the Federal Reserve Board of Governors, the United States Senate, and the FDIC, I have developed a deep appreciation for these venerable institutions and their traditions."She continued: "Throughout my tenure, the agency has focused on its fundamental mission to maintain and instill confidence in our banking system while at the same time promoting innovation, strengthening financial inclusion, improving transparency, and supporting community banks and minority depository institutions. Today, banks continue to maintain robust capital and liquidity levels to support lending and protect against potential losses."McWilliams is the sole Republican member currently on the FDIC board, and her resignation will create a second opening on the panel.Her departure comes as <keyword id="12217407" type="UNKNOWN" weightage="60" keywordseo="rohit-chopra" source="Orion">Rohit Chopra</keyword>, a member of the board and the director of the Consumer Financial Protection Bureau, said in December that McWilliams sought to block attempts by Democratic regulators on the panel to probe rules regarding bank mergers.Last month, Chopra, along with Gruenberg and Michael Hsu, the acting comptroller of the currency, voted to solicit public comment on bank mergers. However, the <a href="https://files.consumerfinance.gov/f/documents/cfpb_bank-merger-act-rfi_joint-statement_2021-12.pdf">statement of request</a> was not placed on the FDIC site but on the site of the consumer bureau that Chopra oversees.After a December 14 meeting, Chopra <a href="https://www.consumerfinance.gov/about-us/newsroom/statement-of-cfpb-director-rohit-chopra-member-fdic-board-of-directors-december-open-meeting-of-the-board/">in a statement</a> said that McWilliams "did not exercise her right to move the matter to a board meeting for discussion" and stated that the General Counsel deemed the supermajority's vote to be "invalid.""This approach to governance is unsafe and unsound," he expressed. "It is also an attack on the rule of law."<a href="https://www.businessinsider.com/reviews/out?u=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fhostile-takeover-fdic-board-rohit-chopra-michael-hsu-jelena-mcwilliams-abuse-power-11639432939">In an op-ed</a> that was published by The Wall Street Journal on December 15, McWilliams was critical of the push by the Democratic regulators, stating that their actions were not reflective the board's "independence.""In the spirit of collegiality, I expressed to board members my willingness to work with them on a document drafted by the FDIC staff that would better reflect the agency's historical approach and do so on an expedited basis to meet their desired timing," she wrote.She continued: "This conflict isn't about bank mergers. If it were, board members would have been willing to work with me and the FDIC staff rather than attempt a hostile takeover of the FDIC internal processes, staff and board agenda. This episode is an attempt to wrest control from an independent agency's chairman with a change in the administration."After the episode, <keyword id="12861700" type="UNKNOWN" weightage="60" keywordseo="banking-industry" source="Orion">banking industry</keyword> organizations <a href="https://www.nytimes.com/2021/12/14/business/fdic-board-meeting-chopra-mcwilliams.html">pleaded</a> for a return to civility among board members.Republican Sen. Pat Toomey of Pennsylvania, a member of the Banking Committee, on Friday <a href="https://www.banking.senate.gov/newsroom/minority/toomey-applauds-mcwilliams-tenure-at-fdic">criticized</a> the actions of the Democratic regulators."The recent, reckless effort by Director Chopra and Interim Director Gruenberg to take over the FDIC board leaves a dark mark on both the FDIC and their own personal records," he wrote. "I am deeply troubled to see the administration support this extremist destruction of institutional norms and unprecedented action to undermine the independence and integrity of our financial regulators."He continued: "President Biden should move swiftly to fill the two vacant board seats and Interim Director Gruenberg's seat with qualified individuals who will respect the FDIC's tradition of operating free from partisan political interference."

Trump-appointed FDIC chair will resign after battle with Democratic bank regulators

<ul><li><keyword id="387788" type="PERSON" weightage="60" keywordseo="Bank-profits">Bank profits</keyword> slid about 70% in the first quarter as <keyword id="6368751" type="UNKNOWN" weightage="60" keywordseo="banks">banks</keyword> diverted billions of dollars in profits to loan-loss reserves, the <keyword id="126536" type="ORGANIZATION" weightage="60" keywordseo="Federal-Deposit-Insurance-Corporation">Federal Deposit Insurance Corporation</keyword> said in a <a href="https://www.fdic.gov/news/news/press/2020/pr20069.html">report</a> released Tuesday.</li><li>Cash held to protect against soured loans jumped to $197 billion from $125 billion in the year-ago period as lenders braced for intense pandemic fallout.</li><li>While the profit shock contributed to bank stocks' plunge in March, "banks effectively supported individuals and businesses during this downturn through lending and other critical financial services," <keyword id="9413586" type="UNKNOWN" weightage="60" keywordseo="jelena-mcwilliams">Jelena McWilliams</keyword>, chairman of the <keyword id="115108" type="ORGANIZATION" weightage="60" keywordseo="FDIC">FDIC</keyword>, said in a statement.</li><li><a href="https://www.businessinsider.com/?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestutm_source=msn.com&amp;utm_medium=referral&amp;utm_content=msn-slideshow&amp;utm_campaign=bodyurlutm_campaign=bodyurl">Visit the Business Insider homepage for more stories</a>.</li></ul>Profits across 5,116 banks slid roughly 70% in the first quarter as the coronavirus halted economic activity and forced firms to boost loan-loss defenses, the Federal Deposit Insurance Corporation said in a Tuesday <a href="https://www.fdic.gov/news/news/press/2020/pr20069.html">report</a>.<keyword id="42111" type="COMPANY" weightage="60" keywordseo="Wall-Street">Wall Street</keyword> giants saw revenue and profits diverge through the period. Wild volatility in the stock and debt <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> drove massive sales across trading desks. Yet firms were forced to divert much of the earnings to protections for newly risky loans as the coronavirus tanked credit health and plunged the US into a recession. Defensive reserves leaped to $197 billion from $125 billion in the year-ago period, according to the FDIC.The profit shock contributed to bank stocks' sharp first-quarter declines, but the bolstering of loss protections shows firms doing their job to mitigate a wave of bankruptcies, Jelena McWilliams, chairman of the FDIC, said in a statement."Although bank earnings were negatively affected by increases in loan loss provisions, banks effectively supported individuals and businesses during this downturn through lending and other critical financial services," she said.Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-small-companies-with-strong-balance-sheets-2020-6">BANK OF AMERICA: Buy these 13 cheap stocks that have unexpectedly strong finances, making them great bets for the next phase of the rally</a>Just over half of FDIC-covered firms reported year-over-year net income declines, and the total share of unprofitable institutions jumped to 7.3%.Despite the profit scare, the number of firms on the agency's "Problem Bank List" remained near historic lows, climbing to 54 from 51. Total assets held at such banks declined to $44.5 billion from $46.2 billion.Community banks followed the broad industry trend with profits diving over the period, yet net operating revenue increased. The boost was largely overshadowed by provision expenses jumping to $1.8 billion, three times the level reported in 2019, the agency said. Overall net income for community banks sank 20.9% from the year-ago period.Now read more markets coverage from Markets Insider and Business Insider:<a href="https://markets.businessinsider.com/news/stocks/federal-reserve-jerome-powell-economic-recovery-facing-uncertainty-recession-coronavirus-2020-6-1029314045">Fed's Powell says US economy is entering bounce-back still clouded by 'significant uncertainty'</a><a href="https://markets.businessinsider.com/news/stocks/investors-push-record-trillions-money-market-funds-stock-volatility-coronavirus-2020-6-1029313634">Investors sink a record $4.6 trillion into money-market funds to ride out pandemic uncertainty</a><a href="https://www.businessinsider.com/investing-advice-jim-rogers-stocks-commodities-purchases-amid-coronavirus-crisis-2020-6">Famed investor Jim Rogers earned a 4,200% return with George Soros. He explains why the US response to COVID-19 is 'embarrassing' — and breaks down 4 purchases he's made amid the fallout.</a>

Bank profits slouched 70% in the first quarter as lenders set aside billions for default protection

<ul class="summary-list"><li>Big name investors have called for the FDIC to extend coverage to all bank deposits.</li><li>But that would only cost banks' customers more, the former FDIC chair said.</li></ul>Big name investors on Wall Street have been calling for the Federal Deposit Insurance Corporation to secure all bank deposits to prevent more failures – but that's a move that would only cost banks' customers more, according to former FDIC Chair Jelena McWilliams.In an interview with <a href="https://www.youtube.com/watch?v=pNasLPjTBS8&amp;ab_channel=CNBCTelevision" target="_blank" rel="noopener">CNBC</a> on Thursday, McWilliams pointed to calls for Congress to lift the FDIC's coverage limit, particularly as more <a href="https://markets.businessinsider.com/news/stocks/western-alliance-stock-price-bank-denies-sale-ft-report-wal-2023-5">troubled lenders</a> show signs of weakness after a trio of bank failures rocked markets in March and April. Currently, the FDIC only backs deposits under $250,000, which would leave larger depositors at risk of losing their money in the event of a bank failure.But extending deposit coverage won't be cheap, McWilliams said, as complicated and complex banks will incur a larger cost to insure deposits."The cost will be borne by somebody. It will be the bank, and inevitably that cost will be borne by its customers," she said. "I'm just warning lawmakers and policymakers, whatever they do, there's going to be a cost associated with that."That comes just a few days after the <a href="https://markets.businessinsider.com/news/stocks/stock-market-news-dow-first-republic-bank-failure-nasdaq-jpmorgan-2023-5">collapse of First Republic Bank</a>, which renewed fears of a banking crisis as more <a href="https://markets.businessinsider.com/news/stocks/pacwest-western-alliance-stock-regional-bank-crash-jpmorgan-jamie-dimon-2023-5">regional lenders begin to lose their footing</a>. Shares of PacWest and Western Alliance have plunged since First Republic's failure, as investors lose confidence in the liquidity of regional lenders amid deposit flight. Billionaire investor <a href="https://markets.businessinsider.com/news/stocks/bill-ackman-regional-banking-fdic-deposits-pac-west-first-republic-2023-5">Bill Ackman</a> warned in a tweet on Wednesday that more lenders could soon fail if the FDIC didn't back all bank deposits. Commentators have been floating the idea of limitless deposit coverage since the collapse of Silicon Valley Bank in March, though US Treasury Secretary Janet Yellen has said the government <a href="https://markets.businessinsider.com/news/stocks/svb-failure-cost-fdic-private-insurance-fund-20-billion-2023-3">isn't considering blanket insurance for all deposits.</a>"You can change the limit to whatever number you want, and you're not going to prevent what happened at some of these banks," McWilliams said, referring to <a href="https://markets.businessinsider.com/news/stocks/svb-failure-cost-fdic-private-insurance-fund-20-billion-2023-3">unique balance sheet problems</a> that Silicon Valley Bank, First Republic, and other lenders dealt with as the value of their bond portfolios plummeted amid rising interest rates. "Would having it provide more confidence in depositors in the banking system? Perhaps. But the truth of the matter is, wherever you set this limit, there are going to be deposits beyond that," she added.

Big name investors like Bill Ackman are calling on the FDIC to insure all deposits, but that would only cost banks' customers more, former FDIC chair says

<ul class="summary-list"><li>US banking regulators are developing clearer guidelines for banks that deal with cryptocurrencies.</li><li>Jelena McWilliams, who chairs the <keyword id="12395940" type="UNKNOWN" weightage="60" keywordseo="fdic" source="Orion">FDIC</keyword>, told Reuters that a roadmap is being developed for financial institutions.</li><li>"If we don't bring this activity inside the banks, it is going to develop outside of the banks," she said.</li></ul>US banking regulators are developing clearer guidelines for banks that deal with cryptocurrencies as the rapidly growing asset class makes its way into mainstream adoption.Jelena McWilliams, chair of the Federal Deposit Insurance Corporation, told <a href="https://www.reuters.com/business/finance/us-regulators-exploring-how-banks-could-hold-crypto-assets-fdic-chairman-2021-10-26/">Reuters</a> Monday that a roadmap is being developed for financial institutions, including clearer rules on holding cryptocurrencies in custody."I think that we need to allow banks in this space, while appropriately managing and mitigating risk," she told Reuters. "If we don't bring this activity inside the banks, it is going to develop outside of the banks. ... The federal regulators won't be able to regulate it."On a conference panel earlier, McWilliams also said she wants regulators to lay out a way ahead for banks to use <keyword id="11893898" type="UNKNOWN" weightage="60" keywordseo="crypto" source="Orion">crypto</keyword> assets as a form of collateral and how banks can hold them on their balance sheets.Regulators in the US so far have issued no definitive stance on how banks should and could hold cryptocurrencies.In <a href="https://www.theblockcrypto.com/post/105374/occ-federal-reserve-fdic-inter-agency-sprint-team-crypto-regulation">May</a>, the <keyword id="12395939" type="UNKNOWN" weightage="60" keywordseo="office-of-the-comptroller-of-the-currency" source="Orion">Office of the Comptroller of the Currency</keyword>, the <keyword id="11895523" type="UNKNOWN" weightage="60" keywordseo="federal-reserve" source="Orion">Federal Reserve</keyword>, and the FDIC discussed the formation of an "interagency sprint team" that will focus on crypto regulation. Meanwhile, the Fed is working on a paper that covers stablecoins, while the White House has formed a working group that is looking at cryptocurrency rules as well.But recent reporting by <a href="https://www.politico.com/news/2021/10/22/trump-regulator-crypto-banks-516826">Politico</a> revealed that a top regulator during the Trump administration allowed banks in January to trade cryptocurrencies on behalf of clients. The decision, which is being reviewed by <keyword id="12075567" type="UNKNOWN" weightage="60" keywordseo="occ" source="Orion">OCC</keyword> acting Comptroller Michael Hsu, wasn't made public until October 22.Despite the lack of regulatory clarity, major banks in the US have not shied away from offering services related to digital assets.<a href="https://markets.businessinsider.com/news/currencies/us-bank-launches-crypto-custody-services-for-fund-managers-2021-10">US Bank</a> in October launched a crypto custody service for fund managers amid growing demand. <a href="https://www.businessinsider.com/jpmorgan-financial-advisors-crypto-bitcoin-products-retail-wealth-management-2021-7?IR=T?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">JPMorgan Chase</a> in July allowed all its wealth management clients access to crypto funds. <a href="https://markets.businessinsider.com/news/currencies/citigroup-bank-crypto-bitcoin-futures-ethereum-goldman-sachs-cme-derivatives-2021-08?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">Citigroup</a>, a month after, announced it is considering trading <keyword id="11893902" type="UNKNOWN" weightage="60" keywordseo="bitcoin" source="Orion">bitcoin</keyword> futures, following <keyword id="6361649" type="UNKNOWN" weightage="60" keywordseo="goldman-sachs" source="Orion">Goldman Sachs</keyword>'s lead in May.Cryptocurrencies, whose collective market cap ballooned to $2.6 trillion at one point, have seen rapid growth in the past years, despite wild price swings and regulatory clampdowns. <a href="https://markets.businessinsider.com/news/currencies/bank-america-bofa-digital-assets-cryptocurrency-report-debut-transformative-blockchain-2021-10?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">Bank of America</a> analysts recently said the space is simply "too large to ignore."

US banking regulators are developing clearer guidelines for banks that deal with cryptocurrencies, report says

Good morning to yet another day of the bank crisis. Phil Rosen here — can you believe it's been almost two months since Silicon Valley Bank collapsed? But here we are still talking about which banks could be next to fall. Yesterday, shares of both <a href="https://markets.businessinsider.com/news/stocks/western-alliance-stock-price-bank-denies-sale-ft-report-wal-2023-5">Western Alliance</a> and <a href="https://www.businessinsider.com/banking-crisis-pacwest-share-price-tumbles-weighing-sale-2023-5">PacWest</a> banks saw steep sell-offs, and the former endured wild swings after the bank denied a report that it was exploring a sale.On the day, <a href="https://markets.businessinsider.com/news/stocks/western-alliance-stock-price-bank-denies-sale-ft-report-wal-2023-5">Western Alliance dropped as much as 62%</a> before cutting those losses in half by the close of Thursday trading. Get this — a new Gallup poll found nearly half(!) of Americans are currently <a href="https://markets.businessinsider.com/news/stocks/banks-crisis-deposits-collapse-accounts-safe-poll-americans-svb-fdic-2023-5">worried about the safety of their money</a> being stored in their banks.Today we're looking at what some of Wall Street's top investors and commentators say has to happen to curb the banking tumult.<hr />If this was forwarded to you, <a href="https://www.businessinsider.com/subscription/newsletter/10-things-opening-bell">sign up here</a>. Download Insider's app <a href="https://www.insider.com/app">here.</a><a href="https://markets.businessinsider.com/news/stocks/bill-ackman-regional-banking-fdic-deposits-pac-west-first-republic-2023-5?_gl=1*ywkf7f*_ga*ODkwODI1NzUwLjE2MzU3Nzg0NDE.*_ga_E21CV80ZCZ*MTY4MzIxODU3My40NjkuMS4xNjgzMjIxNzE5LjQzLjAuMA"></a>1. Billionaire investor Bill Ackman said that banks across the US will be under threat unless regulators move to insure all deposits. In his view, the entire regional banking sector will remain at risk until the <a href="https://markets.businessinsider.com/news/stocks/bill-ackman-regional-banking-fdic-deposits-pac-west-first-republic-2023-5?_gl=1*ywkf7f*_ga*ODkwODI1NzUwLjE2MzU3Nzg0NDE.*_ga_E21CV80ZCZ*MTY4MzIxODU3My40NjkuMS4xNjgzMjIxNzE5LjQzLjAuMA">FDIC steps up its insurance regime</a>."We are running out of time to fix this problem," Ackman said Wednesday, two days after First Republic was taken over by JPMorgan. The shuttered bank had disclosed in its first-quarter earnings report that customers pulled over $100 billion of deposits in three-months."How many more <a href="https://markets.businessinsider.com/news/stocks/bill-ackman-regional-banking-fdic-deposits-pac-west-first-republic-2023-5?_gl=1*ywkf7f*_ga*ODkwODI1NzUwLjE2MzU3Nzg0NDE.*_ga_E21CV80ZCZ*MTY4MzIxODU3My40NjkuMS4xNjgzMjIxNzE5LjQzLjAuMA">unnecessary bank failures</a> do we need to watch before the FDIC, US Treasury, and our government wake up?" Ackman said. "We need a systemwide deposit guarantee regime now."The FDIC guarantees deposits of up to $250,000, meaning that customers who keep more than that in their accounts <a href="https://markets.businessinsider.com/news/stocks/bill-ackman-regional-banking-fdic-deposits-pac-west-first-republic-2023-5?_gl=1*ywkf7f*_ga*ODkwODI1NzUwLjE2MzU3Nzg0NDE.*_ga_E21CV80ZCZ*MTY4MzIxODU3My40NjkuMS4xNjgzMjIxNzE5LjQzLjAuMA">won't get back any money</a> above that limit in the event of a collapse.But even if the regulator did insure more money, former FDIC chair Jelena McWilliams said Thursday a move like that <a href="https://markets.businessinsider.com/news/stocks/fdic-deposit-insurance-blanket-bill-ackman-banking-crisis-first-republic-2023-5">would only cost banks' customers more</a>."The cost will be borne by somebody," she said. "It will be the bank, and inevitably that cost will be borne by its customers. I'm just <a href="https://markets.businessinsider.com/news/stocks/fdic-deposit-insurance-blanket-bill-ackman-banking-crisis-first-republic-2023-5">warning lawmakers and policymakers</a>, whatever they do, there's going to be a cost associated with that." Deposit insurance aside, a lot of people are blaming the Fed for this mess, <a href="https://markets.businessinsider.com/news/stocks/banking-crisis-federal-reserve-interest-rates-jeff-gundlach-billionaire-investor-2023-5?_gl=1*sagb7g*_ga*ODkwODI1NzUwLjE2MzU3Nzg0NDE.*_ga_E21CV80ZCZ*MTY4MzIxODU3My40NjkuMS4xNjgzMjIxNzE2LjQ2LjAuMA">DoubleLine Capital chief Jeff Gundlach</a> among them. The famed bond investor said this week that <a href="https://markets.businessinsider.com/news/stocks/banking-crisis-federal-reserve-interest-rates-jeff-gundlach-billionaire-investor-2023-5?_gl=1*sagb7g*_ga*ODkwODI1NzUwLjE2MzU3Nzg0NDE.*_ga_E21CV80ZCZ*MTY4MzIxODU3My40NjkuMS4xNjgzMjIxNzE2LjQ2LjAuMA">money's going to keep flowing out of banks</a> until policymakers cut interest rates and loosen up monetary policy. Recall that much of the weakness that ultimately toppled Silicon Valley Bank last month was caused by large losses on its bond holdings, which plummeted in value as interest rates increased with aggressive Fed tightening. Americans today have "absolutely no reason to keep their money in" banks, and <a href="https://markets.businessinsider.com/news/stocks/banking-crisis-federal-reserve-interest-rates-jeff-gundlach-billionaire-investor-2023-5?_gl=1*sagb7g*_ga*ODkwODI1NzUwLjE2MzU3Nzg0NDE.*_ga_E21CV80ZCZ*MTY4MzIxODU3My40NjkuMS4xNjgzMjIxNzE2LjQ2LjAuMA">that trend will continue</a> as credit conditions remain tight, Gundlach said.What does the future hold for US banks? Is the worst of the crisis over or is there more to come? Tweet me (<a href="https://twitter.com/philrosenn" target="_blank" rel="noopener">@philrosenn</a>) or email me (prosen@insider.com) to let me know.<hr />In other news:<a href="https://www.businessinsider.com/how-to-succeed-as-airbnb-host-real-estate-investing-strategy-2023-5"></a><div type="image" title="A house with a for sale sign." height="2560" width="5120" msid="100013817" hostid="261" sizebytes="1313430"></div>2. US stock futures rise early Friday, after Apple's latest earnings report gave investors reason for optimism. Meanwhile, the latest data on US jobs is due to be released later today. <a href="https://markets.businessinsider.com/premarket?nr_email_referer=1&amp;utm_source=Sailthru&amp;utm_medium=email&amp;utm_content=Opening_bell&amp;utm_campaign=Post%20Blast%20%20:%20The%20stock%20market%20is%20going%20to%20be%20trading%20flat%20as%20long%20as%20risk-free%20assets%20offer%20much%20more%20yield&amp;utm_term=10%20THINGS%20BEFORE%20THE%20OPENING%20BELL%20SEND%20LIST">Check out the latest market moves</a>.3. Earnings on deck: HSBC, Dominion Energy, and Adidas, all <a href="https://markets.businessinsider.com/earnings-calendar">reporting</a>.4. Bank of America detailed which retail stocks have more than 20% upside. These names look poised to benefit from the mass closures of Bed Bath &amp; Beyond stores, strategists said, and they could see higher market share. <a href="https://www.businessinsider.com/retail-stock-picks-to-buy-gains-upside-bbby-bedbathbeyond-closures-2023-5">Buy into these three names now</a>.5. The US and China are on a collision course that will worsen the geopolitical economic depression. That's according to "Dr. Doom" economist Nouriel Roubini. <a href="https://markets.businessinsider.com/news/stocks/nouriel-roubini-economy-us-china-tensions-recession-depression-trade-decoupling-2023-5">See what else he had to say.</a>6. A stock market portfolio created by ChatGPT is outperforming the top UK investment funds. The finance website Finder asked the large language model to pick names using investing principles from competing funds — <a href="https://markets.businessinsider.com/news/stocks/chatgpt-ai-stock-portfolio-outperforming-investment-uk-funds-finder-outlook-2023-5">and it boasted Meta, Microsoft, and Intel as top performers</a>.7. Stock market investors should keep an eye out for five key indicators with volatility set to ramp up through the end of the year. Turbulence is likely to accelerate in the markets and economy amid bank troubles, tighter credit conditions, and elevated interest rates, Comerica Wealth Management says. <a href="https://markets.businessinsider.com/news/stocks/stock-market-5-things-to-watch-economy-gdp-recession-inflation-2023-5">Here's what to watch</a>.8. A 30-year-old, part-time real estate investor pulls in $20,000 a month from Airbnb. She explained three strategies she used to start making money on the platform in less than a year — <a href="https://www.businessinsider.com/how-to-succeed-as-airbnb-host-real-estate-investing-strategy-2023-5">and how she aims to hit her long-term goal of $1 million annual revenue</a>.9. This contrarian investor shared two vital lessons he learned from his highly profitable association with legend Paul Tudor Jones. Brandywine Asset Management's Mike Dever spoke about watching Jones deliver massive returns and <a href="https://www.businessinsider.com/investing-how-to-stock-market-advice-lessons-paul-tudor-jones-2023-5">the lessons learned from their time together</a>. <a href="https://markets.businessinsider.com/news/stocks/shopify-stock-price-earnings-logistics-unit-sale-staff-cuts-ecommerce-2023-5"></a><div type="image" title="Shopify stock price on May 5, 2023" height="1028" width="1114" msid="100013820" hostid="261" sizebytes="34170"></div>10. Shopify soared 28% Thursday after it reported strong earnings and announced it sold its logistics business. The e-commerce giant also revealed <a href="https://markets.businessinsider.com/news/stocks/shopify-stock-price-earnings-logistics-unit-sale-staff-cuts-ecommerce-2023-5">plans to slash headcount by 20%</a>. <hr />Curated by Phil Rosen in New York. Feedback or tips? Tweet <a href="https://twitter.com/philrosenn" target="_blank" rel="noopener">@philrosenn</a> or email <a href="mailto:prosen@insider.com" target="_blank" rel="noopener">prosen@insider.com</a>.Edited by Max Adams (<a href="https://twitter.com/maxradams?lang=en" target="_blank" rel="noopener">@maxradams</a>) in New York and Hallam Bullock (<a href="https://twitter.com/hallam_bullock" target="_blank" rel="noopener">@hallam_bullock</a>) in London.

The top commentators in markets say the bank crisis isn't anywhere close to over.

<ul><li>Banks' lending profits fell the most since at least 1986 in the third quarter as the coronavirus slammed profit margins, the <keyword id="126536" type="ORGANIZATION" weightage="60" keywordseo="Federal-Deposit-Insurance-Corporation">Federal Deposit Insurance Corporation</keyword> said Tuesday.</li><li><keyword id="466771" type="PERSON" weightage="60" keywordseo="net-interest-income">Net interest income</keyword> fell by 7.2%, or $10 billion, to $129 billion from the year-ago period, according to the agency's <a href="https://www.fdic.gov/news/press-releases/2020/pr20131.html">report</a>.</li><li>Net interest margins fell to a record-low 2.68% over the three-month period. That's 0.68 points lower than in the third quarter of 2019.</li><li>The drop in <keyword id="10364447" type="UNKNOWN" weightage="60" keywordseo="lending-income">lending income</keyword> did little to dent overall profitability. Slashed loan-loss provisions helped net profits jump $32.4 billion to $51.2 billion in the third quarter, the <keyword id="115108" type="ORGANIZATION" weightage="60" keywordseo="FDIC">FDIC</keyword> said.</li><li><a href="https://www.businessinsider.com/?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestutm_source=msn.com&amp;utm_medium=referral&amp;utm_content=msn-slideshow&amp;utm_campaign=bodyurl?utm_source=markets&amp;utm_medium=ingestts&amp;utm_medium=ingest">Visit the Business Insider homepage for more stories</a>.</li></ul>Net interest income — profits made through banks' lending arms — fell the most on record through the third quarter as the coronavirus dragged on margins, the Federal Deposit Insurance Corporation said in a Tuesday <a href="https://www.fdic.gov/news/press-releases/2020/pr20131.html">report</a>.Lending profits fell by 7.2%, or $10 billion, to $129 billion from the year-ago quarter, marking the fourth straight quarter of declines. Nearly half of all banks reported lower net interest income year-over-year, according to the FDIC.<keyword id="6357061" type="SPONSORED" weightage="60" keywordseo="earnings">Earnings</keyword> were pressured by the lowest net interest margins in the agency's 34-year history. The average net interest margin fell 0.68 points from the year-ago period to 2.68%.Read more: <a href="https://www.businessinsider.com/real-estate-investing-strategy-airbnb-shelby-osborne-shares-unique-strategy-2020-12">Shelby Osborne achieved financial freedom using a unique twist on a classic real-estate investment strategy. Here's how she built a portfolio of 53 units, starting in her early 20s.</a>The decline in lending income was still overshadowed by gains elsewhere. Banks' net profits climbed $32.4 billion to $51.2 billion in the third quarter, the FDIC said. The sum is still down $6.2 billion from the year-ago period but shows the industry bouncing back significantly from virus-induced lows. Earnings were largely boosted by a $47.5 billion decline in loan-loss provisions."Lower provisions reflect the improving economy and a general expectation from the banking industry of stabilization in the expected future credit performance of the loan portfolio," FDIC Chairman Jelena McWilliams said in a statement.More than half of all banks reported higher income compared to the second quarter. Still, the share of unprofitable firms rose year-over-year to 4.7%.The third quarter saw one new bank open and 33 banks absorbed through mergers. No banks failed through the period, the FDIC said.Now read more <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> coverage from Markets Insider and Business Insider:<a href="https://markets.businessinsider.com/news/stocks/blackberry-stock-price-record-rally-automotive-software-deal-amazon-bb-2020-12-1029854658">BlackBerry spikes record 65% after finalizing deal with Amazon for automotive data software</a><a href="https://markets.businessinsider.com/news/stocks/zoom-video-q3-earnings-stock-price-slowing-revenue-growth-guidance-2020-12-1029854162">Zoom slides 14% as slowing sales-growth forecasts make investors question the stock's 200% post-COVID rally</a><a href="https://www.businessinsider.com/stocks-to-buy-31-set-to-become-growth-engines-hsbc-2020-12">HSBC says buy these 31 global stocks that are exposed to the pandemic's biggest tech disruptions and set to become growth engines of the future</a>

US banks weathered a record plunge in lending income as COVID-19 hit profits

<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d1b5ba8a17d6c237819afd3-2400/tenev bhatt ap photoben margot.jpg" border="0" alt="Robinhood Vlad Tenev Baiju Bhatt" style="display: block; margin-left: auto; margin-right: auto;" data-mce-source="Ben Margot/AP" />Ben Margot/AP</div></div></div><ul><li>Millennial investing app Robinhood attempted to launch a checking and savings account with a 3% interest rate last year. </li><li>Robinhood claimed the accounts were insured, but no one checked ahead of time to see if this was actually true.</li><li><a href="https://www.businessinsider.com/robinhood-millennial-stock-trading-app-ignored-rules-money-safe-2019-7">Business Insider interviewed</a> 10 former Robinhood employees to uncover the true story about Robinhood's failed launch.</li><li><a href="https://markets.businessinsider.com/">Visit the Markets Insider homepage for more stories</a>.</li></ul><hr />Robinhood, the millennial stock-trading platform that wants to democratize the financial system, announced last year that it was going to offer insured checkings and savings accounts with a 3% interest rate. Shortly after the company's announcement, it came to light that no one from Robinhood had actually reached out to see if that insurance would be possible.<a href="https://www.businessinsider.com/robinhood-millennial-stock-trading-app-ignored-rules-money-safe-2019-7">Business Insider spoke with 10 former Robinhood employees</a> to figure out what really happened when the company launched its checkings and savings account. Here are the five biggest takeaways from <a href="https://www.businessinsider.com/robinhood-millennial-stock-trading-app-ignored-rules-money-safe-2019-7">Business Insider's Robinhood scoop</a>:1. Robinhood knowingly launched its checking and savings account and told customers their money would be insured without checking with the proper regulators. When Robinhood employees warned founder Baiju Bhatt that this wasn't the case, his response was: "Fuck it, we're doing it anyways." 2. Bhatt told employees "we're going to be fine" when they asked him how Robinhood could claim their product was SIPC insured when they hadn't spoken to anyone there. According to Business Insider' reporting, Bhatt deliberately decided not to contact the SIPC to check whether Robinhood's products would be covered. <a href="https://www.surveymonkey.com/r/BI-Young-Investor-Panel" target="_blank" rel="noopener">Markets Insider is looking for a panel of millennial investors. If you're active in the markets, CLICK HERE to sign up.</a>3. Stephen Harbeck, the president and CEO of the SIPC at the time, said that the company never contacted his organization about the new checkings and savings product. Employees promoted the launch on their social media feeds. According to Business Insider's sources, hours after the announcement, a company-wide email told employees to delete everything they posted about the checkings and savings account. 4. Robinhood deleted the press release announcing the product less than a day after the announcement. It was replaced with a new post from Bhatt and co-founded Vlad Tenev that said they were going to reexamine the initiative. 5. A joint letter from multiple US Senators was sent to the Securities and Exchange Commission. It was addressed to chairman Jay Clayton, Federal Deposit Insurance Corporation chairwoman Jelena McWilliams, and SIPC's Harbeck - and it condemned Robinhood. <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/giant-squid-emerges-deep-sea-rare-sighting-japan-toyama-bay-2015-12">Watch a diver swim right next to a 12-foot giant squid in Japan</a></h3> <div> <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/5afzIhe5-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script> </div> </div>

5 takeaways from Business Insider's investigation into Robinhood's botched foray into checking and savings

<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d543085cd9784148077fb00-2400/ap792076748590.jpg" border="0" alt="Michael Corbat" data-mce-source="Larry French/AP" data-link="http://www.apimages.com/metadata/Index/Citi-DC-Branch-Ribbon-Cutting/9c85ea8d70b5441eb2df89aaae0839be/10/0" /><a href="http://www.apimages.com/metadata/Index/Citi-DC-Branch-Ribbon-Cutting/9c85ea8d70b5441eb2df89aaae0839be/10/0">Larry French/AP</a>Citi and other banks want to better understand AI.</div></div></div><ul class="summary-list"><li>Some of Wall Street's largest banks, including Citi and Morgan Stanley, are in the processing of forming a working group aimed at understanding the risks associated with using artificial intelligence, according to three sources involved in the project.</li><li>The group, which initially began to form earlier this year, comes at a time when financial firms are eager to implement AI across various business lines but lack a complete understanding of the complex technology and guidance from regulators. </li><li>While no goals have officially been set, sources said, the overall hope is to develop better guidelines about how to pursue using AI. </li><li><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories.</a></li></ul>Wall Street is as competitive as it gets, but sometimes everyone benefits from working together. And when it comes to understanding the intricacies of artificial intelligence, some of Wall Street's largest financial firms have recognized the benefit of putting their heads together. Citi and Morgan Stanley are among a group of large global banks banding together to create a working group examining the potential risks they may face when using artificial intelligence, according to three sources involved in the project. While it's still early days, and specific goals for the group haven't been established, the hope is that by working together Wall Street will develop a better understanding of how best to use the innovative technology appropriately, according to the sources. The impetus for forming the group earlier this year, one source said, was the recognition that there are risks around the usage of artificial intelligence that needed to be addressed as Wall Street continues to adopt more the tech. Spokespeople for Morgan Stanley and Citi declined to comment. Wall Street stands to benefit from taking a unified approach to understanding how best to use AI in the absence of direction from regulators. Rulemakers have largely avoided crafting specific regulation pertaining to the appropriate use of AI in finance.Meanwhile, banks have put <a href="https://www.businessinsider.com/ai-in-finance-enables-better-customer-service-reduced-fraud-and-cost-savings-2019-7">significant resources towards development around AI-based tools</a> in recent years with the hopes of cutting cost and gaining a competitive edge. As firms get more comfortable with the technology, the laundry list of use cases where AI can be applied to improve manual, labor-intensive processes continues to grow. Banks are experimenting applying AI to everything from <a href="https://www.businessinsider.com/morgan-stanley-new-research-chatbot-ai-launch-save-billions-2019-7">chatbots</a> and fraud detection to more market-facing areas such as <a href="https://www.businessinsider.com/barclays-overhauls-electronic-trading-2019-2">trading</a> and risk management. Read more: <a href="https://www.businessinsider.com/ai-in-finance-enables-better-customer-service-reduced-fraud-and-cost-savings-2019-7">AI has the potential to radically transform financial services. But first banks need to get their data in order.</a>According to a report <a href="https://www.businessinsider.com/value-of-ai-at-banks-to-reach-300-billion-but-jobs-at-risk-2019-4">published by IHS Markit in April</a>, the global business value of artificial intelligence in finance will be $300 billion by 2030. In 2018, the report estimated $41.1 billion in cost savings and efficiencies was recognized thanks to AI's use on Wall Street.However, for all the promises of AI improving how things are done, risks still remain. Interpretability and explainability are two major hurdles. The former refers to understanding how an AI-based tool reaches a solution. The latter is the ability to explain to someone - like a regulator - how that solution was reached. With the use of more sophisticated AI, such as deep learning techniques that include series of complex, ever-evolving calculations, it becomes increasingly difficult for firms to have full transparency into how AI-based tools work. And while the use of a so-called "black boxes" might be acceptable in some areas of the bank, applying it to spaces that directly touch consumers - such as credit decisions - will likely be deemed unacceptable by regulators. There's also the impact the use of the technology will have on the current workforce. For many, AI tools will make jobs easier. However, others might find themselves out of work. By 2030, 1.3 million US workers will have their jobs affected in some way by the introduction of AI, <a href="https://www.businessinsider.com/value-of-ai-at-banks-to-reach-300-billion-but-jobs-at-risk-2019-4">according to the IHS Markit report</a>. While regulators have yet to propose AI-specific rules for finance, that could soon change. Recently, Jelena McWilliams, chairman at the Federal Deposit Insurance Corporation, said at a fintech event her group would push forward with guidance around AI usage for banks if other regulators couldn't agree on a joint proposal, <a href="https://www.americanbanker.com/news/regulators-must-issue-ai-guidance-or-fdic-will-mcwilliams">as first reported by American Banker</a>. See more: <a href="https://www.businessinsider.com/jpmorgan-artificial-intelligence-machine-learning-2019-7">JPMorgan doesn't want to get burned by AI and machine learning. Here's how it avoids costly mistakes.</a>The working group isn't the first time Wall Street has chosen to take a look at the potential risks posed by AI usage. Bank of America became the founding donor of Harvard's Kennedy School of Government's Council on the Responsible Use of Artificial Intelligence in 2018. The goal of the group is to bring together leaders in business, academics, and government to better understand the appropriate usage of AI. Cathy Bessant, Bank of America's chief operations and technology officer, spoke at the time about <a href="https://about.bankofamerica.com/en-us/what-guides-us/human-side-of-artificial-intelligence.html#fbid=W3E5qBfnldv">the new territory the use of AI was bringing firms into</a>. "Our legal and judicial structures have no charted path for a lot of this," Bessant said. "We need to ask the right questions and see to it that deployment of AI doesn't get ahead of the structures and the infrastructure needed to support it."<a href="https://about.bankofamerica.com/en-us/what-guides-us/responsible-ai-beyond-technology.html#fbid=W3E5qBfnldv"></a> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/violent-video-games-ban-mass-shooting-shootings-2018-3">Violent video games are played all over the world, but mass shootings are a uniquely American problem</a></h3> <div> <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/8bYYhdPX-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script> </div> </div>

Citi and Morgan Stanley are among a group of big banks banding together to uncover hidden risks in AI. It shows how far Wall Street has come in embracing the technology.

<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d2cde6ea17d6c79262fb4c9-2400/2018-01-23t211023z587924917rc1c84a06a10rtrmadp3usa-fed-goodfriend.jpg" border="0" alt="Jelena McWilliams, FDIC" data-mce-source="Aaron P. Bernstein/Reuters" data-mce-caption="Jelena McWilliams, FDIC chairperson" />Aaron P. Bernstein/ReutersJelena McWilliams, FDIC chairperson</div></div></div><ul class="summary-list"><li>Varo, a digital-only bank, is coming closer to gaining a national bank charter from the OCC that would separate it from competitors like Chime and Monzo.</li><li>Colin Walsh, CEO and co-founder of Varo, told Business Insider getting a national bank charter will distinguish the startup in what has become of a crowded field of challenger banks and fintechs vying for Main Street's attention. </li><li>In the past year Varo has tripled its customer base and is expected to reach 750,000 registered customers this month, Walsh said. </li><li>The San Francisco-based startup also raised $100 million in a Series C round that closed earlier this year. </li><li><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories.</a></li></ul>Main Street has no shortage of options for where to park its money. Whether it's digital-only banks - known as challenger or neobanks - or investment apps that have grown into full-service offerings, the market for personal finance has arguably never been more saturated. And while there is no denying the newcomers <a href="https://www.businessinsider.com/challenger-banks-like-monzo-n26-and-chime-pose-a-disruptive-threat-2019-2">pose a significant threat to the traditional players</a> - such as JPMorgan Chase, Wells Fargo and Bank of America - the old guard does hold one significant advantage: national bank charters. No recent fintech or challenger bank has received a national bank charter from the Office of the Comptroller of the Currency. Instead, startups interested in offering checking and savings accounts are forced to partner with banks that do have charters, typically small regional firms known as sponsor banks, which then take a cut of the profits for their efforts.However, that could soon change for one challenger bank. <a href="https://www.businessinsider.com/fintech-startup-varo-money-receives-funding-round-2016-5">Varo</a> filed an application with the Federal Deposit Insurance Corporation on Monday. The FDIC application is one of the final steps the startup has to take to receive a national bank charter from the OCC, which it was granted preliminary approval for back in September 2018.The move comes just a few months after closing a $100 million Series C round that included over 40 investors including private equity firm Warburg Pincus, TPG Capital's The Rise Fund and Chinese-based Gopher Asset Management. Varo CEO and co-founder Colin Walsh declined to provide a valuation, citing the fact the company plans to raise another round before it goes live as an independent bank, but said to date Varo has raised $179 million.Walsh told Business Insider it's not sustainable to try and grow while continuing to run under a sponsor bank. As the digital bank grows, it could eventually pose a systematic threat to the bank its partnering with due to its size. The digital bank is also at risk if the sponsor bank gets caught up in regulatory issues that could impact its own business."You just don't control your own destiny when you're operating that model as much as you do when you're actually an independent bank," Walsh said. "Us having that sort of several-year lead on going through that regulatory process and getting on the other side of that regulatory process will allow us to compete in a way that many of the fintechs will struggle in terms of having the breadth of products and having some of the cost advantages."Read more: <a href="https://www.businessinsider.com/n26-german-digital-bank-backed-by-peter-thiel-us-launch-2019-7">A $2.7 billion German fintech startup backed by Facebook VC Peter Thiel is about to launch in the US</a>The charter application has been a long process - Walsh said initial conversations with the OCC began in December 2016 - but there is a light at the end of the tunnel. Following FDIC approval, the OCC would then do a final examination before granting a full charter. If the timeline hold ups, Walsh said Varo should be able to run as an independent bank in the first part of 2020. But <a href="https://www.businessinsider.com/google-paypal-not-interested-in-occ-fintech-charter-2019-6">not everyone in the industry sees the benefits</a> of a national bank charter the same way Walsh does. While several fintechs have explored the possibility of obtaining a national bank charter from the OCC in recent years, only two currently have applications submitted. Varo and <a href="https://www.businessinsider.com/robinhood-millennial-stock-trading-app-ignored-rules-money-safe-2019-7">Robinhood</a>, which applied for one in April, as reported by the <a href="https://www.bizjournals.com/sanfrancisco/news/2019/04/19/robinhood-fintech-bank-savings-checking-accounts.html">San Francisco Business Times</a>. European neobanks <a href="https://www.businessinsider.com/n26-german-digital-bank-backed-by-peter-thiel-us-launch-2019-7">N26</a> and <a href="https://www.businessinsider.com/uk-neobank-monzo-announces-its-us-launch-with-inperson-events-2019-6">Monzo</a>, which enjoyed success in Germany and the UK, respectively, both recently launched in the US without any definitive plans to try and obtain a national bank charter. An executive at one competitor told Business Insider he's happy to let Varo spend time and resources working on obtaining a charter. Once Varo gains approval, a playbook will have been established for what regulators are looking for, thereby making the entire process easier, the executive said.While Wash admits that Varo is doing a bit of heavy lifting by being the first challenger bank to try and gain a national bank charter, it's not as if the OCC will be keen to hand them out afterwards."I think it's a little bit of wishful thinking," Walsh said. "The regulators have to be cautious. ... To think all they have to do is swing by Washington, D.C. and pick one of these things up. They are sort of fooling themselves." And that's not to say Varo hasn't had time to focus on other areas of its business outside the charter application. In the last year it's tripled its customer base, according to Walsh. In July it will hit 750,000 registered customers, which comes just two years after launching its app in July 2017, he added. And there's also plans for a credit card, among other financial offerings, in the "not-so-distant future," Walsh said. By comparison, Chime, which launched in 2014, announced it surpassed 4 million bank accounts in June, quadrupling its user base over a one-year period. Monzo, which went live in 2015, eclipsed <a href="https://monzo.com/blog/2019/05/20/two-million">two million customers</a> in the UK in May with a reported 40,000 accounts opening every week, making it the fastest growing bank in the country. Meanwhile, N26 reported having over 2.3 million active users in Europe in January when it announced <a href="https://www.businessinsider.com/peter-thiel-backed-digital-bank-n26-raises-300-million-2019-1">closing a $300 million Series D round</a> valuing it at $2.7 billion. See more: <a href="https://www.businessinsider.com/uk-neobank-monzo-announces-its-us-launch-with-inperson-events-2019-6">UK digital-only bank Monzo is launching in the US - but getting American customers to sign on may be a challenge</a>As for Varo, with new investors come expectations of returns. And as its customer base continues to grow, the pressure to charge customers fees to generate a greater profit could rise.However, Walsh throws cold water on the idea, pointing to the benefits the charter will provide, including the ability to make money off deposits, something it can't currently do. "How do you avoid the desire to ratchet up fees over time? We won't need to," Walsh said. "It also runs against the philosophy of why the company was started in the first place. We really are authentically trying to help consumers that are feeling stuck." <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/amazon-ceo-jeff-bezos-richest-person-net-worth-billions-2018-12">Jeff Bezos is worth over $160 billion - here's how the world's richest man makes and spends his money</a></h3> <div> <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/p1XfM0qb-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script> </div> </div>

Challenger bank Varo, which has raised $179 million from Warburg Pincus and TPG, just took a big step that might separate it from competitors like Chime and Monzo

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