Finance

Bank Groups Challenge CFPB's Overdraft Fee Cap Proposal in Court

Several banks and banking trade groups are suing the Consumer Financial Protection Bureau (CFPB) over a newly finalized rule that limits the overdraft fees banks can charge.

This rule is part of the Biden administration's broader effort to reduce so-called "junk fees" that burden consumers, including those related to banking services. However, banks argue that removing overdraft protection could push consumers toward riskier, unregulated financial services to address their financial difficulties.

Under the rule announced by the CFPB on Thursday, banks will have three options: they can charge a flat overdraft fee of $5, set a fee based on their costs and losses, or impose any fee as long as they disclose the terms of the overdraft loan, including the annual percentage rate (APR), as they would with any other loan.

Although banks have reduced overdraft fees in recent years, the nation’s largest banks still generate approximately $8 billion annually from these charges, based on data from the CFPB and bank records. Currently, there is no cap on the fees banks can legally impose.

The new rule is scheduled to go into effect in October 2025, but with the incoming Trump administration yet to appoint a new CFPB leader, discussions have surfaced about potentially eliminating the agency altogether.

TECH

What Is Perks Culture and Why Is It Fading?

A deep-tissue massage. Housekeeping and laundry services. A haircut after lunch.

For most people, these are typical perks of an all-inclusive vacation. But for many workers in Silicon Valley, they were just part of a regular workday.

Over the past two decades, the tech industry became known for its "perks culture," a trend of offering employees extravagant and luxurious amenities. Companies like Google and Meta vied with each other to provide the most lavish extras on their vibrant, Skittles-colored campuses as they competed to attract top talent.

CRYPTO

Trump Teases Major U.S. Initiative for Cryptocurrency

President-elect Donald Trump stated that the U.S. will become the global leader in cryptocurrency during his upcoming term.

“We’re going to do something great with crypto because we don’t want China, or anyone else… but others are embracing it, and we want to stay ahead,” Trump told CNBC’s Jim Cramer at the New York Stock Exchange on Thursday, in response to a question about a potential strategic bitcoin reserve.

Trump’s support for the crypto industry marks a notable shift from the current administration, which has had a tense relationship with cryptocurrency businesses. A national strategic bitcoin reserve is one of many promises Trump made to the growing industry that played a role in his reelection.

Trump was at the New York Stock Exchange to ring the opening bell in celebration of receiving Time magazine's "Person of the Year" award.

Bitcoin remained relatively unchanged on Thursday, staying just above the $100,000 mark it reached last week.