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Fifteen months after completing
The consent order, which addressed problems with the Japanese-owned bank's information security and operational risk controls, was terminated earlier this week by the Office of the Comptroller of the Currency.
Analysts at Piper Sandler described the OCC's decision as a positive development for
Shares in the $663 billion-asset banking company are down 1.4% this year. The KBW Nasdaq Bank Index, which tracks the performance of large and regional banks, is up 2.2% since Jan. 1.
The OCC
When the OCC later
The bank's sale eventually closed in December 2022, or
The termination of the September 2021 consent order comes nine months after
The alleged misconduct involved fees to certain customers who rented safe deposit boxes, charges assessed to some customers in Union's private bank program and the bank's failure to waive monthly service charges in certain situations.
The June 2023 settlement with the OCC
January 22, 2024 9:00 PM
When the merger was announced in 2021,
The company now says that it has achieved its $900 million target for cost savings. Those savings will help
Following a recent meeting with Stern, Jefferies analysts wrote in a note this week that the bank has an opportunity to invest in payments products and capabilities within the Union Bank footprint.
Union Bank had substantial West Coast operations, including 280 branches in California at the time the deal was announced.
"Investments will be more geared toward offense than defense moving forward," the Jefferies analysts wrote.
At an industry conference last month,
"And so there's a tremendous upside for credit card," he said.