BankThink

The multidistrict litigation process lumped together disparate overdraft cases in a "one size fits all" approach. As a result, it did not achieve the salutary goals the judicial panel set out to accomplish and must be judged an expensive failure.

Receiving Wide Coverage ...StanChart Revisted: Remember how New York regulators were accusing Standard Chartered of helping Iranians launder $250 billion, but the British bank was only acknowledging $14 million in improper transactions? According to the FT, the discrepancy stems from StanChart's belief it used an exemption to U.S. sanction law, known as a U-turn. This exemption allowed banks operating in the U.S. to process transactions from rogue nations such as Iran so long as they were initiated offshore and properly vetted by the overseas financial institution. The U-turn exemption was revoked back in 2008, but, in its formal statement, StanChart asserts it ceased doing new business with the Iranians five years ago. The bank also says it is absolutely sure it wasn't doing business with terrorists.

Sen. Richard Shelby might be the Senate Banking Committee chairman in 2013, depending on which party is in control. If he does, he has his agenda ready.

As Standard Chartered deals with the fallout over accusations it laundered money for Iran, some wonder if U.S. regulators have been overreaching.

It is best not to ignore Automated Transactions' ATM patent infringement claims. Instead, take proactive steps to determine what course of action is best suited for your financial institution.

Receiving Wide Coverage ...Substandard Charter: Well, this is a bit of a doozy. New York regulators have accused Standard Chartered of leaving "the U.S. financial system vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes" after discovering the British bank allegedly used its New York unit to launder at least $250 billion for the Iranian government. Among other things, the bank is being accused of "wire-stripping," or removing codes from money so Iranian transfers could not be identified. The FT says regulators are also alleging Standard Chartered engaged in "similar schemes" with Libya, Myanmar and Sudan.

Financial institutions cannot continue to be hampered by costly, ineffective legacy data management systems that are not up to evolving needs. It's time for a change.

"The Consumer Financial Protection Bureau is urging colleges to adopt a new form designed to make it easier for students to compare financial aid offers,” writes American Banker’s Kevin Wack.

Working on your wish list for Dodd-Frank repeals? Mark A. Calabria, the director of financial regulation studies at the Cato Institute, has Section 1071, which requires a system for tracking data on lending to women-owned and minority owned small business, on his.

Despite the low number of prosecutions under Sarbanes-Oxley, crimes committed by banks have been punished with big fines. Too bad that's not enough to keep them from offending again.