On Tuesday, September 29 at 12pm, the Task Force on Financial Technology will hold a hearing entitled, “License to Bank: Examining the Legal Framework Governing Who Can Lend And Process Payments In The FinTech Age”. The hearing will be led by Chairman Stephen Lynch (D-MA) with Ranking Member Tom Emmer (R-MN).

The Financial Services Committee (FSC), of which the Task Force on Financial Technology is part of, issued a background memorandum on the hearing. Citing Covid-19 as dramatically impacting the way Americans have not been able to bank in branches, use physical currency, and receive government benefits and loans, the Memo states, “…it is unclear whether most consumers understand the difference in protections and oversight between “banks” and “technology companies” when participating in financial activities, like sending money to a friend.”

The memo further explains how, since technology firms are offering financial services and yet do not have a comprehensive regulatory framework as banks do, the traditional lines of banking and commerce may be blurred. As a result, the FSC Memo states the hearing, “…will examine the legal framework and regulatory scope governing the oversight of traditional banks and other commercial businesses – especially technology companies – engaged in financial activity and the effect on consumer protection, financial stability, and the traditional separation of banking and commerce.”

The path which Fintechs can follow today are laid out by the FSC Memo as either, 1) becoming a fully chartered National Bank, 2) pursuing an OCC special purpose charter, or 3) seek FDIC insurance to be regulated as a state-chartered Industrial Loan Company (ILC). Recently, Square received conditional approval for an ILC

(Reuters) – JPMorgan Chase & Co told thousands of workers across its consumer unit that they could plan to work from home until next year, Bloomberg News reported on Monday, citing memos sent to the bank’s staff.

a store front at night: FILE PHOTO: People walk inside JP Morgan headquarters in New York

© Reuters/Eduardo Munoz
FILE PHOTO: People walk inside JP Morgan headquarters in New York

The directive applies to most of JPMorgan’s U.S.-based employees in the consumer unit and excludes branch workers and some in operations, according to the report.

JPMorgan did not immediately respond to a request for comment.

Earlier this month, Bloomberg reported that the bank had sent its Manhattan workers home after an employee in the equities trading division tested positive for COVID-19.

JPMorgan executives had previously told managing directors and some executive directors within its sales and trading operation that they must return to the office by Sept. 21.

(Reporting by Abhishek Manikandan in Bengaluru; Editing by Devika Syamnath)

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