Happy Triple Witching Friday! Stocks, options, and futures all expire today—causing a spell of volatility in the market. Hold onto your hats, because it’s going to be a magical ride! With $5.5 trillion in derivatives contracts coming off the board, it's a wild rebalance. Nvidia's rocketship move is starting to fizzle, losing $200 billion in value over the last two days. But don’t get ahead of yourselves—it's summer trading, and that means both the markets and the news cycle are slow. ‘Friendly Fraud’ Frenzy
People are disputing credit-card charges more often. One person got a refund for a fake antique chair, then disputed a $3 tip he didn't agree to. Last year, shoppers disputed 105 million charges worth $11 billion. Consumer advocates say this shows people know their rights. But misuse of this process, called "friendly fraud," is rising. Friendly fraud covers disputing real charges or unwanted subscriptions. Visa and Mastercard changed policies to help stores fight disputes. Major banks see more disputes but don’t comment. Customers often get refunds without talking to stores first. Banks usually side with customers. Stores need to prove they didn’t make a mistake. Social media and the pandemic made chargebacks more popular. Fraud protection company Socure found stores lose money and time due to fake disputes. Some stores worry more about friendly fraud than stolen payment info. Wall Street Banks’ Risky Plans
Four big Wall Street banks need to fix their emergency plans. US regulators found problems in their "living wills." These plans show how banks would handle a crisis without hurting the economy. JPMorgan, Bank of America, Goldman Sachs, and Citigroup all had issues. The Federal Reserve and FDIC found these issues while reviewing the banks’ plans from 2023. They found problems in how banks handle derivatives, which are complex financial deals. Citi’s plan was the worst, with data problems and stress tests issues. The regulators didn't find problems with Bank of New York Mellon, Wells Fargo, State Street, or Morgan Stanley. The banks with issues must fix them by July 2025. Citigroup says it's working to solve the problems. Quick Sizzles:
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2024年6月21日星期五
Is Friendly Fraud Fair Game?
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