A group of economically-aligned nations known as BRICS is reportedly hammering out the details on a new currency designed to drop dependence on the US dollar.

South African Ambassador to China Siyabonga Cyprian Cwele says BRICS members will meet this month to discuss the specifics, reports the Chinese state-backed Global Times.

On the agenda is a debate on whether a digital currency would effectively facilitate global trade and settlement while reducing the risk of sanctions.

“The BRICS are advancing the progress of its common currency, while actively promoting the use of local currencies from member states to reduce the risks of solely relying on the US dollar…

Cwele stressed the importance of supporting the use of local currencies with open financial data sharing, while looking into digital currencies as ways to explore multiple and stable mechanisms for trade and settlement to reduce the risks such as sanction by just relying on a singular currency.”

The push for a new currency comes amid a period of expansion for BRICS, which stands for Brazil, Russia, India, China and South Africa.

Last year, the organization added Saudi Arabia, Iran, Ethiopia, Egypt and the United Arab Emirates.

And according to Cwele, more than 20 additional countries have now “expressed an interest” in joining.

Cwele says BRICS leaders are working to create new guidelines for adding additional countries that are non-discriminatory and address issues aside from economics.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

JPMorgan Chase, Bank of America and Citibank are keeping trillions of dollars in unknown and potentially risky assets off of their balance sheets, according to new data from the US government.

The new numbers – compiled by the Federal Financial Institutions Examination Council (FFIEC) and first reported on by Wall Street on Parade – show JPMorgan Chase holds $3.227 trillion off-balance sheet, Bank of America holds $1.6 trillion off-balance sheet and Citibank holds $2.6 trillion off-balance sheet.

The Federal Reserve defines off-balance sheet activities as “quite diverse in nature” and says they may include such instruments as firm loan commitments, standby letters of credit, foreign exchange, financial futures, forward contracts, options, interest rate swap contracts and other derivative products.

Off-balance sheet accounting has been a common practice in the banking industry for years and as Wall Street on Parade notes, it played a major role in the 2008 financial crisis.

“More than other banks, Citigroup held assets off of its balance sheet, in part to hold down capital requirements… if those had been included, leverage in 2007 would have been 48:1, or about 53% higher…

Citigroup, of course, blew itself up in 2008 and received the largest bailouts in global banking history. By March of 2009, its stock was trading at 99 cents.”

In July of last year, the Federal Reserve announced a proposal that would impose higher capital requirements on banks to ensure their balance sheets are more resilient in economic downturns.

CEOs at JPMorgan Chase, Wells Fargo, Bank of America, Citigroup, Morgan Stanley, Goldman Sachs, BNY Mellon and State Street argued against the proposed changes in a Senate Banking Oversight Committee hearing in December.

In a prepared statement, JPMorgan Chase CEO Jamie Dimon said the changes would damage the banking industry and the economy at large.

“Despite zero evidence that large U.S. banks are undercapitalized today, the proposed Basel III Endgame rule, if enacted, would unjustifiably and unnecessarily increase capital requirements by 20-25% for the largest banks.

Banks would be limited in their ability to deploy capital in the times we’re most needed, and the rule will have a harmful ripple effect on the economy, markets, businesses of all sizes and American households.”

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

New York’s Attorney General is penalizing a national bank for freezing its customers’ accounts and handing the funds over to debt collectors.

New York AG Letitia James says an investigation by the Office of the Attorney General (OAG) found that South Dakota-based Pathward Bank illegally sent debt collectors tens of thousands of dollars from New Yorkers’ accounts and froze hundreds of clients’ accounts more than 1,400 times.

According to the AG, Pathward illegally froze accounts belonging to New Yorkers in violation of the state’s Exempt Income Protection Act (EIPA), which bans banks from freezing accounts that include certain government benefits like Social Security benefits, veterans’ benefits, disability insurance, and unemployment insurance, worth up to $3,425.

Says the Attorney General,

“Vulnerable New Yorkers had money taken out of their bank accounts by the very institution they trusted to protect them… Pathward’s illegal actions deprived New Yorkers of their hard-earned wages and critical government benefits.

My office is refunding New Yorkers for every dollar they lost due to Pathward’s illegal actions. If any New Yorker suspects that money is being improperly removed from their bank account, I encourage them to contact my office immediately.”

The OAG’s investigation also determined that the bank repeatedly violated the EIPA after instructing its third-party servicers to freeze accounts and transfer their funds to debt collectors.

Attorney General James notes that many of the accounts frozen had balances under $800, which is several thousand below the wage threshold under the EIPA.

Pathward has agreed to pay $79,664 plus interest to around 88 New Yorkers effected by the violations, and also pay a penalty of $627,000.

James says Pathward cooperated with the investigation and “voluntarily began to remediate these illegal practices last year.”

Pathward Financial had $6.868 billion in assets as of March 2023.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney