BankThink

Leonard Chanin, the lawyer leading the Consumer Financial Protection Bureau’s rule making operation, has been rehired by the law firm Morrison & Foerster, writes American Banker’s Jeff Horowitz.

The SEC's final rule on conflict minerals coming from the Democratic Republic of the Congo, is a "feel good" measure that doesn't accomplish what it intended, argues a Wall Street Journal editorial.

Ethics plays a significant role in a company's overall value and performance. CEOs and CFOs should be working to protect their businesses - and themselves - from violations.

The sad reality is that an unregulated shadow financial system pushed explosive subprime loans.

Receiving Wide Coverage ...Citi Blasts Nasdaq About (Not Via) Facebook: Citi is so displeased with Nasdaq's plans for making up for losses caused by the fumbling of Facebook's initial public offering, it sent the Securities and Exchange Commission a 17-page letter about it. According to the Journal, Citi told the SEC Nadsaq's proposed $62 million compensation plan would cover "only a very small fraction" of its total losses. The bank is estimated to have lost about $20 million during the botched IPO due to glitches that Citi deems weren't technical, but instead caused by "grossly negligent, self-serving business decisions." Other companies, including UBS and the nearly-killed-by-computer firm Knight Capital, suffered higher monetary damages and overall $500 million worth of losses is being attributed to the event. Citi is asking the SEC to reject Nasdaq's proposal. The Times reports the exchange disagrees with the bank's position, largely due to the fact that its customers are required to sign a contract agreeing to the exchange's rules. A Nasdaq spokesperson formally declined to comment.

If the networks don't voluntarily implement more reasonable pricing, merchants will steer consumers to cheaper alternatives and there will soon be nothing left to fight about.

The CFPB proposed a revised rule for mortgage fees that would allow paying down points for interest on home loans.

It's foolhardy to try to read traders' minds to determine if the inventory they are keeping exceeds the demand they expect from clients. There is a better way.

Qualified nonbanks should be able to issue credit cards. This has only rarely been possible up to now – a situation that has warped the industry's structure, giving banks undeserved dominance.

Receiving Wide Coverage ...Here a Probe, There a Probe: Two more banks have joined the ranks of financial institutions under investigation this summer for questionable behavior. According to the Journal, a federal grand jury is looking into the very close ties Regions Financial may have had with executive recruiting firm Fiderion Group LLC and its CEO James Norton III. Prosecutors have asked the bank to turn over information on "any gifts, trips or vacations" Fiderion may have funded. They have also asked for information regarding any loans Regions may have made to the firm or to Norton. The paper, which reviewed documents and spoke to people close to the inquiry, says the grand jury's investigation doesn't necessarily indicate wrongdoing, and the target of the probe isn't clear. It had been previously reported that Fiderion paid the tab for Regions executives at annual golfing getaways from 2002 to 2008, but Norton said he believed these outings complied with the bank's rules on vendor relationships.