Paxton Launches Investigation Into Six Major Banks For Collusion-in-Lending Practices That Potentially Violate Consumer Protection Laws (2024)

FAQs

What top US banks are under investigation? ›

Bank of America, Chase, U.S. Bank, Wells Fargo, Citi Bank and Truist were already being targeted in the probe looking to expose how the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) and the FBI worked together.

The earnings at Industry's subsidiary banks are "insufficient to support operations," the OCC said in its legal notice. The OCC's actions relate to the three Industry Bancshares subsidiaries that the agency regulates: Bank of Brenham, The First National Bank of Shiner and The First National Bank of Bellville.

Three large Wall Street banks – Citibank, JP Morgan Chase and Wells Fargo Bank – have all been sued recently over charging the same type of fees to customers for depositing checks that are later returned.

Attorney General Ken Paxton has aggressively enforced Texas laws safeguarding vital industries against ESG policies pushed by major corporations that would weaponize the powerful financial industry against the interests of this state.

Those placed on review for downgrade are giants: BNY Mellon, Northern Trust, State Street, Cullen/Frost Bankers, Truist Financial and US Bancorp.

Silicon Valley Bank (SVB), the 16th largest bank in the country, collapsed in a matter of days, followed by Signature Bank (SBNY) and First Republic Bank (FRB), marking the largest bank failures after Washington Mutual Bank in 2008.

The news: Last Friday, Pennsylvania financial regulators seized and shut down Philadelphia-based Republic First Bank in the first FDIC-insured bank failure of 2024.

First State Bank failed on April 3, 2020. Ericson State Bank failed on February 14, 2020. City National Bank of New Jersey failed on November 1, 2019.

The Bank of America case is led by California truck driver Anthony Ramirez, California manufacturing worker Mynor Aldana and New Jersey retired widow Janet Hobson. Each said the bank refused to refund hundreds of dollars of overdraft and insufficient funds fees imposed in 2020, 2021 or 2022.

Is Wells Fargo in trouble? ›

US eases restrictions on Wells Fargo after years of strict oversight following scandal. NEW YORK (AP) — The Biden administration eased some of the restrictions on banking giant Wells Fargo, saying the bank has sufficiently fixed its toxic culture after years of scandals.

The Emergency Solution Grant (ESG) Program assists people to quickly regain stability in permanent housing after experiencing a housing crisis and/or homelessness.

ESG ratings are used by investors to evaluate the sustainability and societal impact of companies and organizations. These ratings provide investors with an understanding of how well a company is performing in areas such as environmental stewardship, labor practices, and corporate governance.

ESG oversight and management

The Board's Audit Committee, Compensation and Human Capital Committee, Nominating and Corporate Governance Committee, and Risk Policy and Capital Committee also oversee certain ESG activities.

JPMorgan Chase, the financial institution that owns Chase Bank, topped our experts' list because it's designated as the world's most systemically important bank on the 2023 G-SIB list. This designation means it has the highest loss absorbency requirements of any bank, providing more protection against financial crisis.

U.S. Bank is one of four honorees in the banking category and the only U.S.-based bank to be honored for 10 consecutive years. The listed 2024 World's Most Ethical Companies® honorees outperformed a comparable index of global companies by 12.3% from January 2019 to January 2024.