WASHINGTON - (05/02/06) New Federal Reserve ChairmanBen Bernanke said last week the Treasury Department should considerlimiting the debt Fannie Mae and Freddie Mac sell if Congress failsto act on a bill forcing the mortgage finance giants to shrinktheir huge investments. Bernankes remarks come as Congressis getting ready to take up legislation that would create newoversight over the two secondary mortgage market giants that doesnot include portfolio limits recommended by Bernankespredecessor Alan Greenspan. In his final year in office Greenspanwas an outspoken advocate of efforts to have the secondary mortgagegiants trim their huge mortgage portfolios. Greenspan saw the saleand management of the huge portfolios as benefitting the companyand its shareholders, but not mortgage borrowers, as the twocompanies were created to do. Meantime, President Bush nominated anew director of the Office of Federal Housing and EnterpriseOversight, the regulator over Fannie and Freddie. James Lockhart,who is currently deputy commissioner of the Social SecurityAdministration, will serve as acting director of OFHEO until he isconfirmed by the Senate.
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The Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
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The store-branded card issuer is raising annual percentage rates and adding fees for paper statements to compensate for lost revenue. The Consumer Financial Protection Bureau's new regulation is scheduled to take effect on May 14.
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At the banks' annual meetings, shareholders at both companies struck down proposals that would have split the board chair and CEO roles. Two other proposals also failed to win shareholder support, one concerning energy financing and another on pay gap analysis.
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Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
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The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
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Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.
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