Browsing: Newsbytes

Economy

Consumer credit increased at a seasonally adjusted annual rate (SAAR) of 7.3 percent in April to $3.38 trillion. Revolving credit rose at an annual rate of 11.6 percent (to $900 billion) and non-revolving credit increased at an annual rate of 5.8 percent ($2.49 trillion).

Compliance and Risk

The Consumer Financial Protection Bureau yesterday issued a report describing several lenders’ reverse mortgage advertisements as confusing to seniors. Based on focus groups of seniors, the CFPB said several reverse mortgage ads inadequately disclosed that reverse mortgages are loans, offered incomplete or inaccurate information about loan terms and included illegible fine print.

Compliance and Risk

The Justice Department announced last week that four banks — Société Générale Private Banking (Lugano-Svizzera), MediBank AG, LBBW (Schweiz) AG, and Scobag Privatbank AG — have reached resolutions under the department’s Swiss Bank Program.

Economy

Total nonfarm payroll employment rose by 280,000 in May, up from last month’s revised estimate of 221,000. The unemployment rate rose slightly to 5.5 percent. The Federal Reserve has placed its full-employment estimate between 5 percent and 5.2 percent.