BankThink

A survey released Tuesday by SAI Global Compliance shows that financial service companies are dedicating a growing portion of their software budget to regulatory compliance.

The Consumer Financial Protection Bureau, created under the 2010 Dodd-Frank reform law, recently announced that it was restructuring the agency to establish a new office to deal with financial institutions and their trade groups.

Ahmanson had seen men get rich by focusing on the government's priorities. Now it wanted homes and mortgages. He would build a business to meet this demand.

Receiving Wide Coverage ...A Whole Lot of 'Puffery': Standard & Poor's is formally urging a judge to dismiss the government's civil lawsuit alleging the agency ignored its own standards and rated mortgage investments much higher than they should have been in years leading up to the financial crisis. S&P argued on Monday that the DOJ "had failed to substantiate its allegation that the CDO ratings would have been lower based on the deteriorating housing market," reports the Financial Times. It is also arguing that "snippets" of conversation cited in the DOJ's claim don't constitute evidence and, instead, "add up to 'classic puffery,' the vague and overblown language that businesses often use to describe the virtues of their products and services," Dealbook reports. Lawyers appear to be going with this argument since it has worked in the past. "Legally, that might be a tenable defense," some lawyers tell the Journal, "but politically and reputation-wise," it's not a good look for an agency that essentially sells its seal of approval to clients. A hearing to decide whether the case will proceed is scheduled for May 20, but Bloomberg reports a complete dismissal is unlikely. "S&P can't support its request to dismiss the case by supplying evidence to contradict the allegations," a formal federal prosecutor said. "It can only argue that the Justice Department will never be able to prove its civil fraud claims." Another lawyer, however, told the news provider that, in the long run, the case isn't likely to go to trial, predicting "the company will eventually reach a settlement with the government."

The Consumer Financial Protection Bureau released a guide stating that the impact on small banks from a new escrow rule for higher-priced mortgages should be minimal.

Fixating on whether to break up the biggest banks puts policymakers at risk of re-fighting the last war while giving short shrift to the emerging risks that imperil the financial system.

If you want your every assumption challenged, spend just an hour with Peter Diamandis.

Steve Francis, president and general manager of North America, GMC Software, explains how automation can add to personal touch in strong member service.

Nasser J Sweileh, senior product manager with EastNets, explains why measuring efficiency and effectiveness of compliance is a vital effort.

The introduction of more private, risk-bearing capital to housing finance should expand homeownership possibilities.