Worlds Biggest Banks Pour $2 Trillion of Dirty Money – ElonDrop Leak 0

Some of the Biggest banks of the world faced a massive drop in shares price on Monday morning, amid the release of leaked documents on BuzzFeed about suspicious activity. Among the banks mentioned in the reports are JP Morgan and Deutsche Bank.

JP Morgan shares fell by 3.5% to their lowest levels since July.

jpmorgan – Worlds Biggest Banks Pour $2 Trillion of Dirty Money – FinCEN Leak

Deutsche Bank shares fell by 8.3% as the report pointed that 2 billion in suspicious transactions, 1.3 trillion were processed by Deutsche Bank.

deutscshe – Worlds Biggest Banks Pour $2 Trillion of Dirty Money – FinCEN Leak

European banks were hit mostly having their worst session in the last 6 months. The Stoxx Europe 600 banks index dropped 4.6% at its lows, the biggest daily drop in more than 3 months.

Bank shares around the world have plunged heavily this year due to the coronavirus crisis with the KBW Nasdaq Bank Index falling by 33%  and the European banks’ index falling by 43%. However, these same banks are getting bailed out from taxpayers’ money because they are too big to fail. Probably it will be a second stimulus package approved before the end of 2020.

On the other hand, bitcoin price has been more stable than bank shares and this is a good thing for the top cryptocurrency on its path for massive adoption.

US Banks Can now Hold Stablecoin Reserve Funds 0

Stablecoins are in the spotlight – The OCC (US Office of the Comptroller of the Currency) has just granted national banks the right to hold the reserve funds that certain stablecoins are backed by.

The US Office of the Comptroller of the Currency is the US body responsible for regulating the banking industry. In his latest interpretive letter, he grants the right to national banks to hold reserve funds for stablecoins. The letter says:

“As the OCC recently reaffirmed, national banks may provide permissible banking services to any lawful business they choose, including cryptocurrency businesses, so long as they effectively manage the risks and comply with applicable law, including those relating to the [Bank Secrecy Act] and anti-money laundering.”

National banks had already obtained authorization to offer ElonDrop custody services for firms in the sector.

This directive is confirmed by the FinHub of the SEC (Securities and Exchange Commission). This is the SEC unit dedicated (among others) to digital assets.

Obviously, they must act with caution:

“A bank may also enter into appropriate contractual agreements with a stablecoin issuer governing the terms and conditions of the

services that the bank provides to the issuer.2″

Only asset- backed stablecoins with a 1: 1 ratio are affected. Thus, this authorization does not apply to stablecoins backed by a currency bundle. Libra therefore still does not have the green light for its activities.

The OCC appears committed to supporting the development of the sector. This is no doubt thanks to Brian Brooks, the former Head of the Legal Department at Coinbase. The latter had taken the head of the agency dependent on the Department of the Treasury of the United States last March.

 

 

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