Federal Reserve Chair Janet Yellen said banks may need to hold additional capital to weather financial stress. Speaking via video to an Atlanta banking conference, Yellen said additional capital could help make the banks more stable if another financial crisis occurred. She said stricter rules are possible, but they would likely only apply to the most complex banks. The Fed will conduct a review to see how stricter rules would affect banks.
New York Attorney General Eric Schneiderman is reportedly investigating whether Herbalife (HLF) is a pyramid scheme. The New York Post reported that the attorney general’s office has spoken to at least two people who have given sworn testimony. The report comes after a shareholder class action lawsuit was filed in a federal district court in Los Angeles claiming that the company failed to tell investors that its operations were based on a pyramid scheme and it engaged in deceptive trade practices. Last week it was revealed that the FBI and Justice Department are investigating Herbalfe, as well. The Federal Trade Commission and Securities and Exchange Commission are also investigating the company. Herbalife shares closed up 1.99%.
And Best Buy (BBY) shares were down as low as $24.25 on news that the president of its U.S. retail business is retiring. The Minneapolis StarTribune reported that 29-year company veteran Shawn Score is retiring just six months after being named president of the unit. He was initially put in charge of Best Buy’s 1,400 U.S. stores in January of last year, and was named head of the unit in October. He is being replaced by human resources chief Shari Ballard, who was previously in charge of the company’s 450 international stores. Best Buy shares closed down 2.72% at $25.
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- Janet Yellen