Wednesday, September 12, 2012

Non-banks set for more federal scrutiny

Welcome to the morning roundup. Here's a look at what's news in banking and finance.

Non-banks to be named 'systemically important.' The Financial Stability Oversight Council will soon name the first non-banks to be declared systemically important and subject to increased regulation, Bloomberg reports. Such companies could include AIG and GE Capital.

Judge rejects racial bias suit against Merrill. A lawsuit filed by black Merrill Lynch brokers objecting to a bonus program instituted when the company was bought by Bank of America was rejected by a federal appeals court, Reuters reports. The brokers could still win a similar case from 2005 claiming systematic racial bias in hiring and promotion.

Wells Fargo bid for Discover would be 'win-win.' Rumors are still swirling that Wells Fargo could acquire Discover Financial, and Forbes magazine says it would be a good deal for both sides. The magazine says it makes sense in Wells' growth model and would give the fourth-largest card payment processor a broader base.