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
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
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:
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