Target said Monday that the Justice Department is investigating the credit and debit card security breach at the retailer.
The investigation comes after Target revealed last week that data connected to about 40 million credit and debit card accounts were stolen between Nov. 27 and Dec. 15. The Justice Department declined to comment on whether it’s investigating the breach at Target, the nation’s second-largest discounter. But Target said that it’s cooperating with the probe.
The news came as Target also said it is working with the Secret Service in the retailer’s own investigation and that its general counsel held a conference call Monday with state attorneys general to bring them up to date on the breach.
“Target remains committed to sharing information about the recent data breach with all who are impacted,” said Molly Snyder, a Target spokeswoman.
Target has been trying to deal with fallout from the breach during what is typically the busiest shopping season of the year. By Monday evening, more than a dozen Target customers had filed federal lawsuits across the country, with some accusing Target of negligence in failing to protect customer data.
— Associated Press
The American Bankers Association said Monday that it will mount a legal challenge to the “Volcker rule” unless U.S. banking regulators soften a provision that restricts bank ownership of certain investments.
“If the rule is not suspended, we will shortly file a lawsuit challenging the rule . . . and seeking emergency relief,” Frank Keating, chief executive of the ABA, wrote in a letter to regulators.
At issue is a provision of the rule that prohibits banks from owning more than 3 percent of any individual hedge fund or private-equity fund and bars banks from investing more than 3 percent of their total equity capital in private funds.
The ABA’s letter, sent to the heads of the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., is the latest in a back-and-forth of public statements between the trade group and regulators.
It comes a few days after the central bank and agencies told the banks that they do not immediately need to sell off the assets in question. Instead, the banks will have until July 2015 to decide if their investments are permissible under the Volcker rule.
“The ABA has informed us of its intention to file suit. We will review the suit when it is filed, confer with the other agencies and determine a response,” a Fed spokeswoman said. Spokesmen for the FDIC and OCC declined to comment.
Named for former Federal Reserve chairman Paul Volcker, the rule was required by the 2010 Dodd-Frank Act. It seeks to limit the type of risk-taking by banks that got them in trouble in the 2007-2009 financial crisis.
● PNC Financial Services Group agreed to pay $35 million to settle claims that minorities were charged more for home loans than similarly qualified white borrowers. National City Bank, which PNC purchased in 2008, violated fair lending laws involving loans made to 76,000 blacks and Hispanics between 2002 and 2008, according to the complaint and proposed settlement filed in Pittsburgh federal court. The settlement is the first reached jointly by the Justice Department and the Consumer Financial Protection Bureau, the CFPB said.
● Jos. A. Bank rejected a takeover offer from competitor Men’s Wearhouse, saying the $1.54 billion bid is too low. Men’s Wearhouse said it will “carefully consider all of our options to make this combination a reality.” That may include launching a proxy battle. In September, a few months after Men’s Wearhouse ousted its founder and chairman, George Zimmer, Jos. A. Bank offered to buy its larger rival for $2.3 billionare. Men’s Wearhouse turned down that offer.
● Southwest Airlines, which last hired flight attendants from outside the company in 2011, received applications at a rate of 80 a minute for two hours and five minutes, amassing 10,000 résumés for 750 openings. In recent years, other airlines have also seen interest in flight attendant positions. Delta Air Lines got 22,000 résumés for 300 jobs in December 2012, and US Airways Group, part of American Airlines Group, attracted 14,000 applicants when it hired 420 attendants in 2010.
● The Federal Reserve Board of Governors unveiled a proposal that would limit the scope of its authority to bail out a large financial company on the brink of collapse through its emergency-lending programs. The Fed’s proposal would implement a key provision in the 2010 Dodd-Frank Act that sought to prevent future big bailouts after the Fed extended more than $1 trillion in emergency credit during the financial crisis. The Fed’s plan will be open for public comment until March 7.
● Italy’s Parliament passed a new measure on Web advertising, called the “Google tax,” which requires Italian companies to buy Internet ads from locally registered companies, instead of from units based in tax havens such as Ireland, Luxembourg and Bermuda. The bill has stirred controversy, with some lawyers saying it probably violates European Union laws regarding non-discrimination over commercial activity.
— From news services
● 8:30 a.m.: Durable-goods report for November released.
● 10 a.m.: New-home sales for November released.
● 1 p.m.: Stock market closes early for Christmas Eve.