Law and regulation

Complex rules can be bent to special interests, and invite gaming and unfairness. An example is the exclusion of credit cards that don't impose "finance charges" from a great many requirements.

If the House goes to the Republicans, Rep. Jeb Hensarling of Texas will most likely be the next head of the Financial Services Commmittee. A Dodd-Frank revamp and GSE reform will be his twin causes, predict observers.

Although the Federal Deposit Insurance Corp.'s yearlong study of challenges and opportunities for community banks is expected to yield a final report next month, the agency will release an update on some of its findings this week.

Regulators are expected to miss a global deadline to finalize Basel III capital and liquidity requirements by yearend.

Success will depend on how regulators handle four areas: Collaboration, scope, privacy and the regulatory burden.

Citigroup Inc., the third-biggest bank by assets, received requests for information from the Monetary Authority of Singapore related to probes into the rigging of key benchmarks used to set loan rates.

With a community-based state charter, Veridian Credit Union isn’t supposed to have members outside its market in Iowa. And yet the credit union has been handling funds nationwide for the alternative payment company Dwolla since 2009.

What happens when the government’s investors start demanding a normal rate of interest? House prices could plummet, mortgage defaults could soar and the added interest costs could cause the federal deficit to spiral out of control.

Some collection agencies in Canada said Monday they are not happy that legislative reform has grouped them in with unscrupulous out-of-province debt-reduction companies.

CFPB Director Richard Cordray is expected to stick out his recess appointment term through 2013 regardless of who wins the presidency. After that various different scenarios could play out.

The government continues to broaden relief for homeowners in areas hit by Hurricane Sandy.

Bankrupt should be barred from selling its mortgage servicing unit to Ocwen Financial unless Ocwen agrees to honor ResCap's portion of a $25 billion legal settlement with the U.S. and 49 states, government lawyers said in court papers.

Although bankers want full insurance for certain deposits to be extended, the Federal Deposit Insurance Corp. encouraged institutions Monday to tell customers in advance that that insurance may expire.

In all the regulatory discussion of small banks vs. megabanks, what about midsized banks? Some of those banks that are over the $50 billlion asset threshold, but far from being a Wall Street behemoth, are hiring their own lobbyists.

The outspoken Texas lawmaker is widely expected to take the top slot on the banking panel, pursuing an agenda to revamp Dodd-Frank and privatize Fannie Mae and Freddie Mac.

The CFPB, FDIC and FHFA face a number of potential scenarios affecting their leadership structure depending on who wins Tuesday night.

As the presidential election looms, observers talk about changes a President Romney could make to the CFPB while regulators warn on reducing loan loss reserves too quickly. Following are the top stories from Washington last week.

The potential consequences include rising interest rates, dropping home values, a resurgence of foreclosures and a dramatic, perhaps generational loss of consumer confidence.

Only a strong QM rule can prevent a repeat of the past and protect consumers from the type of risky and irresponsible lending that preceded the foreclosure crisis.

As the effective date for compliance with the CFPB's final remittance rule approaches, bankers are saying meeting all the requirements will not feasible. "It's one of those 'you can't get there from here’ regulations," says an industry lawyer.