KEN SWEET Banking Reporter, Author at The Rapid City Post

Consumer Financial Protection Bureau dismisses $95M overdraft case vs. Navy Federal Credit Union

July 1, 2025

The Consumer Financial Protection Bureau, led by President Trump’s administration, has dropped a case against Navy Federal Credit Union. The case involved $80 million in refunds for illegal overdraft fees charged to service members. The issue, known as “authorized positive overdraft fees,” occurred when transactions were approved but later incurred fees due to insufficient funds. Navy Federal stopped the practice in 2022 and had partially refunded customers. Previously, the credit union agreed to pay a $15 million fine and refund affected members. The CFPB provided little explanation for withdrawing the settlement, and Navy Federal has not clarified if refunds will continue.

Federal Reserve Board Chairman Jerome Powell speaks during a news conference at the Federal Reserve in Washington, Wednesday, June 18, 2025. (AP Photo/Mark Schiefelbein)

Big banks all pass the Federal Reserve’s stress tests, but the tests were less vigorous this year

June 27, 2025

The Federal Reserve said all major banks passed this year’s stress tests, showing they can withstand a hypothetical severe economic downturn. The tests, announced Friday, were less rigorous than in previous years, with milder assumptions about unemployment, real estate, and stock market declines. The Fed says the changes aim to reduce unintended volatility in results. However, the tests excluded risks like exposure to private credit, a growing $2 trillion market that has been repeatedly flagged by economists and financial market observers as potentially destabilizing. Passing the tests allows banks to issue dividends and buy back stock.

FILE - A security officer works inside of the Consumer Financial Protection Bureau (CFPB) building headquarters, Feb. 10, 2025, in Washington. (AP Photo/Jacquelyn Martin, File)

Senate Republicans move to slash consumer bureau funding by half, risking hundreds of job cuts

June 27, 2025

Senate Republicans have proposed cutting the Consumer Financial Protection Bureau’s funding by nearly half. The move is part of President Donald Trump’s “Big Beautiful Bill” and could lead to significant job cuts at the agency. The CFPB, created after the 2008 financial crisis, receives its funds from the Federal Reserve. However, the proposal would reduce its funding cap by nearly half. Critics, including Sen. Elizabeth Warren, argue this would weaken the agency’s ability to regulate bad financial practices. Senate Democrats are expected to challenge the proposal.

KEN SWEET Banking Reporter.

Consumer Financial Protection Bureau dismisses $95M overdraft case vs. Navy Federal Credit Union

Big banks all pass the Federal Reserve’s stress tests, but the tests were less vigorous this year

Senate Republicans move to slash consumer bureau funding by half, risking hundreds of job cuts

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