Markets Digest Trump's Inaugural Policies, Capital One Recovers From a Major Outage, & Regulators Tackle Zombie Mortgages

Banking on Disruption Daily

Financial markets are currently digesting the implications of President Trump's inaugural policies, particularly his proposed trade tariffs on Canadian and Mexican imports. This has led to mixed reactions, with the dollar index experiencing a decline, although long-term support from the Federal Reserve is anticipated. Additionally, regulators are stepping up their efforts to monitor mortgage servicers, especially in light of concerns over 'zombie mortgages'—loans that unexpectedly re-emerge, catching homeowners off guard. On another front, Capital One has successfully restored services after a significant outage caused by a third-party vendor's power failure, which left many customers unable to access their accounts. This episode also highlights the tension between regulatory oversight and innovation in the digital payment space, as the tech industry challenges the Consumer Financial Protection Bureau's recent regulations.

Takeaways:

• Financial markets reacted variably to Trump's inaugural address, particularly affecting currency and equity markets.
• The Consumer Financial Protection Bureau is focusing on mortgage servicers to address zombie mortgage issues.
• Capital One has restored services after a significant outage caused by a third-party vendor failure.
• Regulatory changes by the CFPB may stifle innovation in the digital wallet sector, according to tech companies.
• Trump's proposed trade policies indicate a preference for bilateral negotiations over immediate tariffs on imports.
• The tension between regulatory oversight and innovation is highlighted by the recent CFPB lawsuit against tech firms.

Companies mentioned in this episode:

• Capital One
• FIS Global
• Citibank