Troubled Barclays fires its chief executive
Barclays fired chief executive Antony Jenkins, concluding he wasn't moving quickly enough to put past scandals behind the bank and increase profits. The bank, Britain's second-largest, announced that John MacFarlane had taken over as executive chairman, fully effective July 17 when he retires from transport operator FirstGroup. A search for a permanent successor is underway. Jenkins has been the standard-bearer of a mission to overhaul the bank's corporate culture after a string of troubles, including a role in rigging the London interbank offered rate, a benchmark for consumer interest rates.
Fed minutes detail caution on interest rates
Federal Reserve policymakers last month saw signs that the economy was healing after its winter slump but agreed that there were still too many uncertainties at home and abroad to raise interest rates. Minutes of the June 16-17 discussions showed that while one Fed official was ready to begin hiking rates at the meeting, "most participants" believed that conditions were not yet ripe for an interest-rate increase. The minutes revealed that many Fed officials expressed concern about the impact a failure to reach a deal on Greek debt might have on financial markets.
U.S. consumer borrowing rises to record
U.S. consumer borrowing climbed to a record high in May, propelled by a surge in auto and student loans. Consumer borrowing increased $16.1 billion following a gain of $21.4 billion in April, the Federal Reserve reported. The April increase had been the strongest monthly increase since July 2014. The gains pushed total borrowing to a fresh record of $3.4 trillion. In May, borrowing in the category that includes autos and student loans rose by $14.5 billion. Borrowing in the category that covers credit cards rose by $1.6 billion.
JPMorgan to pay $136M over robo-signing
JPMorgan Chase will pay $136 million to settle charges that it used illegal tactics to go after delinquent credit card borrowers, the Consumer Financial Protection Bureau said. The CFPB alleged the bank illegally relied on robo-signing — signing mass quantities of documents without verifying the data in those accounts — and provided inaccurate information to third-party debt collectors when it sold the accounts. Under the terms of the agreement, JPMorgan Chase & Co. will refund at least $50 million to consumers and pay $136 million in fines to the bureau, 47 states and District of Columbia.
GM to recall 196,000 Hummer SUVs
General Motors is recalling more than 196,000 Hummer SUVs worldwide because the ventilation fan motor controls can overheat and start a fire. The recall covers the 2006 to 2010 Hummer H3 and the 2009 and 2010 H3T. The company says the module that controls the heating and air conditioning blower motor speed can overheat when operated for a long time, melting nearby plastic and increasing the risk of a fire. The company says it has reports of 42 fires, including three that caused minor burns. Dealers will replace the faulty module and wiring harness at no cost to owners.