Markets News 

UBS, RBS, HSBC, Barclays note difference between FX spot trading and FX consumer retail transactions to rebuff legal complaint

“Those resolutions cannot support specific jurisdiction over this action predicated on transactions in the asserted FX consumer retail market” reports financefeeds.com. Also, according to the banks, the plaintiffs have not averred facts concerning a conspiracy in their asserted FX consumer retail market.However, the alleged correlation between FX spot market benchmarks and FX consumer retail prices implies at most a foreseeable domestic consequence, which is insufficient to show intentional targeting, particularly given the Foreign Defendants’ absence from the asserted FX consumer retail market in the United States.They have alleged only a…

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Wells Fargo fires head of consumer lending unit

“The dismissal did not relate to the business or operations of the lending business, or to sales practices” writes Ciara Linnane for marketwatch.com. WFC, -0.81% said Friday it has fired Franklin Codel, head of its consumer lending business, because of his actions in a communication with a former team member who was let go. Shares were indicating lower in premarket trade, and are down about 1% in 2017, while the S&P 500 SPX, -0.20% has gained 15%.The unit’s four heads will report to Chief Executive Tim Sloan, while the bank…

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Wells Fargo fires consumer lending head Franklin Codel

“Wells Fargo & Co said on Friday Franklin Codel, a senior executive vice president and head of its consumer lending organization, has been dismissed, effective immediately” reports foxbusiness.com. The company said Codel, who was senior executive vice president of consumer lending for just over a year, was not dismissed over the business or operations of consumer lending or its sales practices.In the interim, the heads of consumer lending’s four main lines of business will report to Wells Fargo Chief Executive Tim Sloan. Source: foxbusiness.com Share This:

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Goldman Sachs’ lending platform is booming

“As such, Goldman Sachs is likely to remain the dominant incumbent in the digital lending space for the foreseeable future” writes Maria Terekhova for businessinsider.com. Other banks may be tempted to emulate Goldman Sachs’ move into lending, but they should proceed with caution.Goldman Sachs launched its digital consumer lending platform, Marcus, in October 2016, and was already displaying rapid growth in June, when it announced it had originated $1 billion in loans in just eight months.Although consumer credit demand in the US is growing, and Goldman Sachs’ success with Marcus may tempt more of its…

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Richard Cordray to step down as Consumer Financial Protection Bureau director

“Cordray is the first director of the agency, created in the 2010 Dodd-Frank law to police financial markets for consumer abuse” writes Joseph Lawler for washingtonexaminer.com. Republicans have long aimed to curb the agency’s powers and objected particularly to Cordray’s pursuit of new rules on consumer products.Although his departure was long rumored among financial services lobbyists, Cordray stayed at the agency long enough to finalize major new rules on payday lending and class-action lawsuits against financial companies, the latter of which was subsequently struck down by the Republican-led Congress. Source: washingtonexaminer.com…

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U.S. retail sales unexpectedly rise on automobile purchases

“The Commerce Department said on Wednesday retail sales increased 0.2 percent last month” reports foxbusiness.com. Last month’s increase in core retail sales indicated a healthy pace of consumer spending at the start of the fourth quarter.Economists polled by Reuters had forecast that retail sales would be unchanged in October.Excluding automobiles, gasoline, building materials and food services, retail sales increased 0.3 percent last month after climbing 0.5 percent in September.These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. Source: foxbusiness.com Share This:

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US consumer prices rise marginally, core CPI firming

“The year-on-year core CPI had increased by 1.7 percent for five straight months” reports foxbusiness.com. October’s increase lifted the year-on-year increase in the core CPI to 1.8 percent.That lowered the year-on-year increase in the CPI to 2.0 percent from 2.2 percent in September.The cost of hospital services increased 0.5 percent and prices for doctor visits rose 0.2 percent. Source: foxbusiness.com Share This:

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U.S. retail sales rise modestly in October after surge in prior month

“The numbers: Retail sales slowed in October after a sharp gain in the prior month” writes Senior Economics Reporter for marketwatch.com. Growth in consumer spending has been healthy, with retail sales up 4.6% over the past year.Sales rose a revised 1.9% in September, up from the prior estimate of a 1.6% gain, boosted by post-hurricane spending.Excluding autos, sales rose 0.1% after a 1.2% gain in September. Source: marketwatch.com Share This:

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Japan exports drive expansion, offset weak consumer spending

“Strong exports and corporate investment helped offset relatively weak household demand, which accounts for nearly two-thirds of business activity but remains fragile thanks to sluggish growth in wages” writes The Associated Press for seattletimes.com. TOKYO (AP) — Japan’s economy expanded at a 1.4 percent annualized rate in July-September in the seventh straight quarter of growth for the world’s third-largest economy.But it slowed from a 2.6 percent annualized rate of growth in April-June, the Cabinet Office reported Wednesday.While the revival in exports thanks to recovering demand in China, the U.S. and…

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