In attempting to prevent abuses of the interchange cap exemption for reloadable prepaid cards, the Fed may have inadvertently scuttled an opportunity for banks to serve low-balance account holders.

Trustmark Corp. in Jackson, Miss., said Tuesday that its second-quarter earnings jumped 21% from the same period last year, to $31.6 million.

Citing improving economic conditions, TSYS reported a 3.9% increase in second-quarter revenue. Its net income rose 4%.

Massachusetts Attorney General Martha Coakley told the state's Register of Deeds Association that she will not sign a multistate settlement with large mortgage servicers that includes a widespread release of liability for claims against the Mortgage Electronic Registry Systems.

FinCEN's final rule to prevent prepaid accounts from being used to launder money attempts to balance the concerns of many parties.

Fiserv's revenue rose 4.2% as it sold more of its bill payment and account processing software to banks.

Warburg Pincus, one of the oldest and best-known private-equity players, has arrived at a strategy that experts say might offer a blueprint for the next phase of private-equity investing in banks.

Legal experts say the placement and wording of the CFPB's form for credit card complaints may put an unwelcome spotlight on issuers' risk management strategies.

Sterling Bancorp in New York reported strong loan and deposit growth in the second quarter, but profits were dampened somewhat by the cost of exiting the government's Troubled Asset Relief Program.

First Interstate BancSystem Inc. in Billings, Mont., said this week that second-quarter net income rose 48%, to $9.9 million, from a year earlier, despite an increase in its nonperforming loans.

If the debt ceiling isn't raised, the Treasury Department could give Fannie Mae and Freddie Mac payment priority. But without a spending deal, the threat of downgrades would loom.

PrivateBancorp Inc. reported its fourth-straight quarterly profit Tuesday, but weak loan growth and declining revenue have raised questions about whether the Chicago company can maintain the momentum.

BancorpSouth shares jumped sharply a day after the company reported an impressive financial turnaround, reporting earnings of $12.8 million for the second quarter.

The Financial Industry Regulatory Authority on Tuesday said it fined SunTrust Banks Inc. $5 million for violations related to the sale of auction-rate securities.

In what would be its first open-bank acquisition in five years, Wintrust Financial Corp. in Lake Forest, Ill., announced Tuesday that it is acquiring Elgin State Bancorp Inc. in Elgin, Ill., for $13.8 million in cash and stock.

Bolstered by improved credit quality and growing demand for Small Business Administration loans, Nara Bancorp Inc. in Los Angeles reported its fourth-consecutive quarterly profit in the three months that ended June 30.

Yadkin Valley Bank and Trust Co. in Elkin, N.C., has exited the wholesale mortgage business in order to better focus on retail mortgage lending.

Originations of Federal Housing Administration-backed loans fell 23% during the first three quarters of fiscal 2011 compared to the same period a year earlier, a further sign of a weakening single-family market.

Home prices rose 1% in May compared to April, and 16 of 20 metropolitan areas tracked by the Standard & Poor's/Case-Shiller house price index registered monthly price gains.

Mortgage technology and service provider Lender Processing Services earned $21.4 million in the second quarter, a 73% decline from the same period a year earlier, citing restructuring charges and lower revenue.