How would regulators react to Amazon-JPM checking partnership?
By Rachel Witkowski
The negotiations between Amazon and big banks like JPMorgan Chase and Capital One to offer a checking-account-like product pose significant questions for regulators about the e-commerce giant pushing further into the banking space. Amazon is hardly new to the financial world. It already offers a payments system through third-party websites, called Amazon Pay, and it has a cobranded credit card with JPMorgan. …If the bank “owns the customer,” then “the rules governing banks protect the consumer,” said Karen Shaw Petrou, managing partner of Washington-based financial services consultant, Federal Financial Analytics. “If the bank doesn’t own the customer, then the rules — not just the consumer protection rules but the safety and soundness rules — are both different.”