A TransUnion survey of 3,000 US consumers found that 42% of respondents expect to use credit cards for their holiday shopping, compared with 38% last year. Meanwhile, 55% of respondents expressed optimism about their household finances, down 3 points from last year. "The higher-income consumers continue to be enthusiastic about spending," while "lower-income clients are struggling with the higher cost of living these days," although "delinquencies in credit cards and unsecured loans seem to be under control," said Charlie Wise of TransUnion.

The Consumer Financial Protection Bureau is looking to shift its remaining enforcement cases and litigation to the Justice Department and furlough the agency's in-house enforcement attorneys, a move that would affect over 100 CFPB employees, sources said. The moves come after acting Director Russell Vought said the CFPB's funding is sufficient only to cover its operations through the end of 2025. Meanwhile, a preliminary injunction bars the CFPB from conducting mass firings via a reduction in force.

FICO is incorporating real-time cash-flow data into its UltraFICO Score through a partnership with fintech company Plaid. Previously, the UltraFICO Score compiled several months' worth of cash-flow data to provide insight into a borrower's creditworthiness. Last week, Experian introduced a credit score that blends credit and cash-flow data.

Banks are preparing for the ISO 20022 standard as SWIFT's support for legacy payment messaging standards is set to end on Saturday. ISO 20022 is intended to curtail payment errors by providing more detailed transaction information, improving payment accuracy and regulatory compliance. SWIFT is providing a one-year contingency period to maintain business continuity, although additional SWIFT charges will apply.

JPMorgan Chase, Bank of America, and Citigroup reportedly have set aside plans for a $20 billion bailout package for Argentina. Originally intended as a major private-sector debt facility to stabilize Argentina's finances, the plan was abandoned due to uncertainty over acceptable collateral and guarantees, as well as improved market sentiment after President Javier Milei's party's electoral victory. Banks are now considering a $5 billion short-term loan through a repo facility to help the government meet a $4 billion debt payment in January, sources said.

The mixed results in the delayed September employment report -- showing that the US economy added 119,000 jobs, surpassing expectations, while the unemployment rate rose to 4.4% -- could perpetuate the uncertainty surrounding the Federal Reserve's upcoming December policy meeting. "This isn't going to change anybody's mind," said David Seif of Nomura.

Federal Reserve Governor Lisa Cook warned that the increasing use of leveraged basis trades by hedge funds in the $30 trillion Treasury market could heighten vulnerability during periods of stress. The strategy, which seeks to profit from small price gaps between cash Treasuries and futures, has grown rapidly and may amplify instability or disrupt market functioning in extreme conditions, she said. "Outside of episodes of stress, relative value trades substantially improve the efficiency and liquidity of Treasury securities and related markets," said Cook. "Yet, during episodes of stress, the unwinding of crowded positions in such trades could magnify instability in these markets."