Wells Fargo upgrade contrasts with legal and technology risks

S&P upgrades Wells Fargo & Company to A-. The long-term issuer rating rose from BBB+ on improvements in governance, risk culture and operational oversight. S&P maintained a stable outlook and expects balance-sheet growth following the removal of the Federal Reserve asset cap to moderate.

Federal judge allows trafficking claims against FirstBank Puerto Rico to proceed. The ruling allows claims under federal trafficking law and a New York City gender-motivated violence law to proceed, but dismisses an obstruction claim that could be revisited depending on a separate appeal. The lawsuit alleges the bank ignored warning signs and facilitated banking connected to Jeffrey Epstein’s trafficking network; FirstBank and parent First BanCorp deny the allegations.

FINMA ends its anti-money-laundering enforcement action against Julius Baer. Morgan Stanley upgraded the bank to equal-weight from underweight and raised its price target to CHF 81 from CHF 67 following the closure. It still expects subdued client flows in the second half of 2026 and investment in a new core banking system in 2027.

Peoples Bancshares of TN applies to buy First Peoples Bancorp. The September 18 application follows an agreement to acquire the parent of First Peoples Bank of Tennessee. Peoples previously projected about $650 million in combined assets; the latest report says it expects to complete the acquisition early next year. No purchase price was disclosed.

Fifth Third completes its Comerica systems conversion. The conversion moved approximately 600,000 customer accounts and 293 banking centers across five states onto Fifth Third platforms. Fifth Third described it as the final integration step following the companies’ February 1, 2026 merger.

FDIC proposes a bank-fintech vendor certification program. The agency circulated the proposed RAMP program in July to standardize parts of vendor assessment, potentially easing due diligence for smaller banks. American Banker’s analysis cautions that certification cannot assess risks unique to each bank-fintech partnership or replace banks’ oversight, and could become outdated as vendors change.

Citi expands its Coinbase partnership for stablecoin payments. Citi Virtual Account will power Coinbase virtual accounts, while Coinbase Payments will power stablecoin acceptance through Spring by Citi. The arrangement connects bank payment infrastructure with digital-asset services; the report does not provide commercial terms.

Bowman calls for bank leadership to address AI-enabled cyber threats. The Federal Reserve vice chair for supervision said boards and senior management should invest in people, processes and technology aligned with each institution’s risks and complexity. She cited access controls, employee training and incident-response testing among defensive practices.