Regulators Are Fed Up With Food-Delivery Fees

American consumers have been forced to eat food-delivery costs sometimes nearly as big as the meals themselves. Regulators are fed up. In addition to new laws boosting compensation and benefits for delivery drivers, restaurant protections such as pandemic-related commission caps have been proliferating at the city and state levels. Consumer protections could be next. New laws have been costly for delivery players that have been struggling to generate consistent profits lately. On its third-quarter conference call, Uber , which owns and operates Uber Eats, suggested it wouldn’t absorb all of the added costs related to the passage of Proposition 22 in […]

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WSJ News Exclusive | Massachusetts Regulators to File Complaint Against Robinhood

Massachusetts securities regulators are expected to file a complaint Wednesday against the wildly popular trading platform operated by Robinhood Financial LLC, alleging the company aggressively marketed to inexperienced investors and failed to implement controls to protect them. In a final draft of a more than 20-page administrative complaint reviewed by The Wall Street Journal, the enforcement arm of the Massachusetts Securities Division said Robinhood failed to protect its customers and their assets, violating state laws and regulations. Robinhood exposed Massachusetts investors to “unnecessary trading risks” by “falling far short of the fiduciary standard” adopted this year that requires broker-dealers to act […]

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Global Regulators Highlight Need to Shore Up Money-Market Funds After March Turmoil

WASHINGTON—Global policy makers said market tumult triggered by the coronavirus pandemic in March exposed risks posed by nonbank financial firms and pledged to take steps to address them. A long-awaited report released Monday by the Financial Stability Board, a global body overseeing financial regulation, highlighted money-market mutual funds that saw destabilizing investor runs that prompted the Federal Reserve to intervene. The FSB said it would work to develop specific policy improvements sometime next year. “The March turmoil has underscored the need to strengthen the resilience of nonbank financial intermediation,” said Randal Quarles, the Fed’s vice chairman for supervision, who also heads […]

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Ant Founder Jack Ma Faces Backlash From Regulators

Jack Ma is getting a lesson about who is in charge. Chinese regulators on Tuesday suspended the $34 billion initial public offering of Ant Group, the online-finance operation carved out of e-commerce giant Alibaba Group , just two days ahead of what was planned to be the world’s largest-ever initial public offering. The extraordinary regulatory action, according to Chinese officials and others with knowledge of the process, caps a monthslong tug of war between Mr. Ma, the billionaire co-founder of both Alibaba and Ant, and top regulators led by Vice Premier Liu He, President Xi Jinping’s point man on economic and […]

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Chinese Regulators Summon Ant Leaders Amid Record IPO

China’s central bank and its securities, banking and foreign-exchange regulators met Monday with Jack Ma and the top executives of Ant Group Co., just days ahead of the financial-technology giant’s stock-trading debuts. The People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange said they summoned Mr. Ma, who is the controlling shareholder of Ant, as well as Ant Chairman Eric Jing and President Simon Hu, for… Source link

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Ant Group’s Giant IPOs Set to Launch After Regulators Clear the Way

Chinese financial technology giant Ant Group Co. said investors in mainland China have committed to purchasing more than a third of the shares it plans to sell in a pair of blockbuster initial public offerings, as the company prepares to raise tens of billions of dollars for its long-awaited market debuts. Ant, the operator of popular payments and lifestyle app Alipay, on Wednesday submitted updated regulatory filings to stock exchanges in Shanghai and Hong Kong, after receiving a final nod from the China Securities Regulatory Commission to move forward with its listing plans. Regulators in China and Hong Kong have given […]

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Chinese Fintech Is Hot. Regulators Could Still Cool It Down

Chinese fintech giants are coming to market. The country’s online finance scene has shifted rapidly from the Wild West of just a few years ago. But having conquered smaller rivals and evolved around skeptical Chinese regulators, these new finance heavyweights face a new and different set of risks. Ant Group, the finance affiliate of Alibaba, could raise more than $30 billion in concurrent Shanghai and Hong Kong share sales, making it the largest initial public offering ever globally. Another fintech company Lufax, backed by China’s largest insurer Ping An Insurance, 2318 0.91% is planning to raise about $3 billion in a […]

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Regulators Fine Citigroup $400 Million Over ‘Serious Ongoing Deficiencies’

Federal banking regulators on Wednesday fined Citigroup Inc. $400 million and ordered the nation’s third-largest bank to fix its risk-management systems, citing “significant ongoing deficiencies.” In a consent order agreed to by the New York bank’s board, the Federal Reserve faulted Citigroup for falling short in “various areas of risk management and internal controls” including data management, regulatory reporting and capital planning. The Office of the Comptroller of the Currency said the fine was punishment for the bank’s… Source link

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JPMorgan Probe Revived by Regulators’ Data Mining

WASHINGTON—Investigators probing whether traders at JPMorgan Chase JPM 0.96% & Co. rigged silver prices seven years ago decided there was no case to bring. Last week, the same agency hammered the megabank with a $920 million fine. How a small agency that once walked away from an investigation of price manipulation, only to later impose its biggest fine ever for the conduct, shows the advances government has made in using data to uncover market manipulation, said James McDonald, enforcement director of the Commodity Futures Trading Commission. “We could not have brought the JPMorgan case without the data analytics program we have […]

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