Law and regulation

Officials say servicing problems for service members with student loans are comparable to issues facing mortgage borrowers in the military.

Student loan borrowers have been sharing their complaints with the CFPB, and the stories "bear an uncanny resemblance to problematic practices uncovered in the mortgage servicing business," says the agency's student loan ombudsman in a report to Congress.

Republicans will most likely keep control of the House next term, but several GOP freshmen on the House Financial Services Committee are facing tough reelection contests.

WASHINGTON — The Treasury Department said Thursday it will auction off its preferred shares in 11 more institutions that remain in the Troubled Asset Relief Program.

Bankers urged their counterparts to rally against Basel III and other regulations at the American Bankers Association conference in San Diego. In contrast, regulators tried to convince bankers that their voices would be heard in Washington.

Commercial banks donated significant amounts of money to some of the most critical -- and most hotly contested -- congressional races this year.

And for the same reason those guarantees were limited and temporary – namely, moral hazard – TAG should not be extended.

The FTC charged an Ohio-based company and its owner with fraudulently claiming on 17 Web sites they operated that consumers could quickly get out of debt by working with one of several debt settlement companies.

Lenders and consumer advocates are critical of a probable CFPB compromise in which lenders get safe habor from ability-to-pay lawsuits for all "qualified mortgages" except for those with subprime interest rates.

The Bipartisan Policy Center on Thursday will launch its Financial Regulatory Reform Initiative, which will assess the law's effectiveness and recommend improvements in a report expected next fall.

Control of the Senate remains up for grabs, and there are several tight races that could be key for the banking industry.

Quazi Mohammad Rezwanul Ahsan Nafis was arrested for allegedly plotting to bomb the New York Federal Reserve in lower Manhattan as part of a sting operation by federal authorities who provided the suspect with fake explosives.

The industry must work much harder to restore its reputation after this year's scandals, HSBC USA CEO Irene Dorner said Tuesday, in a speech that was part rally and part reprimand to bankers.

Under the proposal, card issuers could consider shared household income when approving credit card applications.

The Merrill Lynch litigation is settled, but an ongoing tiff with Fannie Mae means elevated repurchase claims could continue for several more quarters.

U.S. Bancorp in Minneapolis lowered its loan-growth expectations for the fourth quarter to reflect borrower uncertainty about the election, the fiscal cliff and the overall economic environment, CEO Richard Davis says.

Repeal Dodd-Frank and replace it with what? "Possible replacements are unlikely to work or to be politically feasible," writes Steven M. Davidoff. And big banks have been getting bigger because it makes economic sense for them, not because Dodd-Frank is spurring them on, he argues.

Former Acting Comptroller of the Currency Julie Williams has learned one key lesson she hopes all bankers will heed: When faced with tough decisions, do the right thing.

House Financial Services Committee Chairman Spencer Bachus released a new report Wednesday attacking the Dodd-Frank reform law's "too big to fail" provisions, two days after Rep. Barney Frank defended them.

Comptroller Tom Curry remains committed to a push for higher capital levels, but he also suggested this week that agencies are considering other ways to reduce Basel III’s burden on community banks.