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Banks ‘De-Risking’ Business Lines, Customers to Allay Regulators, Lower Costs
By Brian Monroe
printA number of large U.S. and international banks are dropping customer accounts and services tied to high-risk geographical regions and lines of business in response to regulatory pressure, including enforcement actions. HSBC, Standard Chartered, Wells Fargo, Bank of America, Citigroup, JPMorgan Chase and other banks have collectively dropped thousands of correspondent accounts and tens of thousands of customers as well as business lines over the last 18 months, at a cost of tens of millions of dollars in fee income, according to compliance professionals. "Due to increased regulatory scrutiny, higher compliance spending and stricter capital rules…banks are reassessing all kinds...
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