Weekly Global News Wrap: US floats stricter regional bank rules; Some China banks to cut mortgage rates

And Wells Fargo has agreed to return $40m in overcharged fees to 11,000 customers.

From Reuters:
America’s large regional banks may be compelled to issue roughly $70b in fresh debt under a new rule proposed by regulators to bolster the sector’s resilience.

The proposed new guidelines– spearheaded by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and the Office of the Comptroller of the Currency– would bring the debt requirement of banks with over $100b in assets in line with that of the largest Wall Street giants.

It follows a tumultuous spring for regional banks in which Silicon Valley Bank and two other lenders collapsed, forcing regulators to backstop deposits to stave off a broader panic.

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From Reuters:
Some Chinese state-owned banks will soon lower interest rates on existing mortgages, three sources familiar with the matter said on Tuesday, as Beijing ramps up efforts to revive the debt crisis-hit property sector and bolster a sputtering economy.

Some Chinese state-owned banks are set to lower interest rates on existing mortgages, three sources told Reuters on Tuesday.

The cut on existing mortgages, if implemented, will be the first such move in China since the global financial crisis. 

Cuts will differ depending on the client and the city, the sources said.

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From CNBC:
Wells Fargo has paid back $40m to almost 11,000 customers who they have overcharged for investment advice, the Securities and Exchange Commission announced.

The bank also agreed to pay a $35m civil penalty to settle SEC charges. 

Wells Fargo neither admitted nor denied the allegations, the agency said.