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Staying On Top of Vendor Risk Management News: Week of April 23

Apr 27, 2018 by Branan Cooper

The week of April 23 has been a big one for vendor risk related news. Headlines include: CFPB changed their name and confirms consumer complaints are going private, Wells Fargo was slapped with a $1 billion fine, Deloitte study shows 57% of organizations lack adequate visibility over their third party relationships, additional information on GDPR and more. Read below.

Industry News for the Week of April 23

Outgoing FDIC chairman remarks on the state of regulatory reform: Read here

Mulvaney changes name of CFPB to BCFP and says complaints database will no longer be public: Read here and here

The emergence of regtech (even mentions third party risk management and Excel very specifically): Read here

Mortgage companies should take cybersecurity as seriously as compliance: Read here

Gem of a comparison of major regulatory guidance on third party risk: Read here

Wells Fargo braces for a $1 billion fine from CFPB and OCC:

States step in to fill CFPB void (quotes Ballard Spahr as well): Read here

Regulation is one of the biggest challenges facing banks today: Read here

Strong words for Wells and the last portion speaks volumes to reputation risk

WASHINGTON – House Financial Services Committee Chairman Jeb Hensarling (R-TX), issued the following statement on an announced settlement (Read here) between the Bureau of Consumer Financial Protection (Bureau), the Office of the Comptroller of the Currency (OCC) and Wells Fargo which ‘requires the bank to reimburse affected borrowers and pay a $1 billion fine’ as a result of the bank’s violation of the Consumer Financial Protection Act (CFPA).

Fraud is fraud and theft is theft. What happened to far too many customers at Wells Fargo for far too many years cannot be described any other way. One billion dollars is one of the largest civil penalties ever imposed upon a bank and, based on all the evidence, it was well deserved.

Although the regulatory system may have failed before the fact, it appears to be working after the fact. All the facts indicate that the OCC and the Bureau under the previous administration had ample evidence and ample authority to have discovered and ended these unlawful practices early on. They failed, pure and simple.

The best form of consumer protection remains competitive and transparent markets vigorously policed for fraud and deception. But it is not enough to hold a bank accountable; the actual individuals responsible for the wrongful deeds must be held responsible as well.

I know that Wells Fargo has many dedicated employees who do serve their customers well and had nothing to do with the wrongful acts. We all look forward to the current management concluding all necessary reviews and restructuring so that Wells Fargo can once again regain the trust and respect it once had.”

Learning from others’ mistakes: Read here

The CFPB’s semi-annual report contains a very interesting opening by acting director Mulvaney: Read here

Congress seeks to force CFPB to issue guidance: Read here and here

The $51,000 ransomware demand cost Atlanta nearly $3 million to fully address: Read here

Deloitte study shows 57% of organizations lack adequate visibility over their third party relationships: Read here

TSYS CIO (and former Bank of America colleague) discusses the issues that concern her, including keeping customer data safe: Read here

As states step up, more enforcement by consent order (Ballard Spahr Apr 24, 2018 webinar): Read here

A primer on the history of banks and credit unions and how the divisiveness has grown: Read here

SEC fines Yahoo for failing to disclose breach:

Altaba (Yahoo!) pays $35 million for cybersecurity breach

The SEC has announced that Altaba Inc., the entity formerly known as Yahoo! Inc,. has agreed to pay a $35 million penalty to settle charges that it misled investors by failing to disclose one of the world’s largest data breaches in which hackers stole personal data relating to hundreds of millions of user accounts.

FCPA compliance, PEPs and what you need to know: Read here

We’re no Yelp, says the CFPB (or BCFP): Read here

Is GDPR a nightmare? Read here

Nimble fintech solutions far outsprint cumbersome internal legacy systems: Read here

FTC charges LendingClub with deceptive practices: Read here

Learn everything you need to know about GDPR compliance - download our latest infographic.

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Branan Cooper

Written by Branan Cooper

Branan Cooper is the Chief Risk Officer at Venminder. Branan has nearly 30 years of experience in the financial services industry with a focus on the management of operational and regulatory processes and controls—most notably in the area of third party risk and operational compliance. Branan leads the Venminder delivery team as the third party risk management subject matter expert in residence. Branan also serves as an industry thought leader. He's a member of InfraGard and the Professional Risk Management Industry Association (PRMIA). And, he was selected in 2018 as an advisor to the Center for Financial Professionals (CEFPro) and board member for the Global Sourcing Resource Network (GSRN).

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