Law and regulation

WASHINGTON — The Federal Deposit Insurance Corp. warned banks under its watch Wednesday about the risks of acquiring participations in loans while relying too heavily on originating institutions for the underwriting.

The FDIC highlighted continued use of "alternative financial services" in its second-ever survey reporting the share of households that are unbanked or underbanked.

Regulators have a legitimate interest in overseeing activities that threaten a bank. But they should lay off bank affiliates and activities that pose no such threats.

Zions Bancorp. (ZION) is hopeful that it will exit the Troubled Asset Relief Program in late September or early in the fourth quarter.

"No financial institution's collapse could sink our economy"? Funny. "To accord nonbanks parity with banks, just regulate nonbanks more strictly"? Hilarious. But here's a real howler: "We have to go on subsidizing home building and financing."

Banks as a whole continue to invest heavily in bonds issued by Fannie and Freddie, but strategic orientations vary widely across individual companies. Use this interactive graphic to see portfolio composition for big holding companies.

A federal judge approved a class action of thousands who were sued for debts and then had default judgments entered against them. The collection industry has closely watched the case for nearly two years.

The mother of the Consumer Financial Protection Bureau spent much of her recent prime-time performance accusing banks of dishonesty. Perhaps she should take a gander in the mirror.

Leaders of small banks do not want the Fed to purchase more bonds or keep interest rates low. Instead, they want the Fed stand down and let the economy heal on its own.

The Office of Financial Research, created by the Dodd-Frank Act, has neither yet become the all-powerful entity its opponents feared, nor "the muscular, autonomous U.S. hub for financial regulatory data collection, standardization and storage that its backers hoped for.”

To develop a successful mobile wallet, many agree industry collaboration is necessary. But how much collaboration is too much?

The acting director of the FHFA said Fannie Mae and Freddie Mac need to increase the fees they charge to guarantee mortgages in states where it's costlier for them to deal with bad debt.

The National Retail Federation said it will try to block a settlement of as much as $7.25 billion with Visa and MasterCard over the fees they charge shops when customers pay with credit cards.

Although creditors could lose money in FDIC wind-downs of large firms authorized by the Dodd-Frank Act, many of them may own a piece of the startup that emerges from the failed company's ashes.

The National Retail Federation said it will try to block a settlement of as much as $7.25 billion with Visa and MasterCard over the fees they charge shops when customers pay with credit cards.

The Federal Housing Finance Agency said Tuesday that Fannie Mae and Freddie Mac are pursuing a new representation and warranties model for conventional loans to help minimize risk exposure for lenders.

The FDIC can invest in the equity of teetering but salvageable banks. This would save money for the taxpayers, preserve banks that are worth preserving – and send a clear message about the future of community banking.

CashCall Inc., a California-based collection agency, owned by the former owner of this year's Kentucky Derby and Preakness Stakes winner, has been penalized $13 million.

While the Republicans hardly mentioned Wall Street reform at their convention, it was practically center stage for the Democrats. Everyone from President Obama to President Clinton remarked on it, while Elizabeth Warren and Rep. Barney Frank discussed it in more detail during their addresses to the entire convention. Here are the highlights:

We've heard plenty about big banks, and a lot about the small banks, but what about the impact of regulation on those that are somewhere inbetween?