Law and regulation

Almost two-thirds of small businesses in the Federal Reserve Bank of New York's region that sought credit received some form of financing, according to a poll conducted by the bank during the second quarter.

With advances for the Federal Home Loan Banks flat at the end of last quarter compared with yearend 2011, the system gets help from lower OTTI charges and end of thrift-crisis fund.

After Julie Williams, the longtime No. 2 at the Office of the Comptroller of the Currency, announced she was leaving, one question dominated the resulting discussion: Was she pushed out or did she jump?

This year's drought could cause many farmers to default on ag loans, particularly those tied to livestock. For banks with high concentrations of ag loans, the drought poses the first major credit challenge since the financial crisis.

Ginnie Mae is considering raising minimum net-worth requirements for issuers of its mortgage-backed securities after being deluged with applications from small mortgage banks. Disruptions in the mortgage market prompted the rush.

Julie Williams, one of the nation's pivotal regulators for large banks, announced her departure from the Office of the Comptroller of the Currency effective Sept. 30.

C. Boyden Gray, the lawyer involved in the suit challenging the constitutionality of the CFPB, writes in the Washington Times that "the new regulatory regime primarily helps the big banks while placing its heaviest burdens on community banks.”

It's well known in Washington that August is meant to be a dead time, as lawmakers return to their home states to campaign and regulators take the month off. But last week proved the exception to the rule, with action on mortgage servicing, eminent domain and Basel III. Here are some of the highlights:

Regulators currently entrusted with the task of policing Wall Street are facing a well-funded, well-connected and politically shrewd beast.

Many in the industry have criticized the length — 1,400 pages — of the CFPB’s recently proposed rule on mortgage disclosure forms and fees. Why so many pages in order to get simpler forms?

The Federal Deposit Insurance Corp. sued banks including JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) over $388 million in securities sold to Colonial Bank.

First National Community Bancorp (FNCB) has finally caught up on its financial reports for 2011 — now on to 2012.

Banking trade groups are furious about a move by the National Credit Union Administration to notify more than 1,000 credit unions that they may not need to comply with a cap on business lending.

As expiration dates near for FDIC loss-sharing agreements inked in 2008, more failed bank buyers are looking to unload loans before the coverage runs out. As a result, they face growing pressure to book new loans to replace the ones they are trying to run off.

The Lansing, Mich., company has turned to court to try and recapitalize itself. The move would leave all existing stakeholders with a 53% equity stake in the company. Capitol, meanwhile, is still searching for an investor to take the other 47%.

The special inspector general for Tarp worked in the subbasement of the Treasury Department. Watchdogs given an inconvenient, dank, dark, dirty and desolate office maybe won't stay long.

Despite the lagging economy, which has left many students graduating from college with fewer, if any, job prospects, there is cause for optimism in the medium term, the Fed chairman told teachers at a Town Hall meeting last week.

The former chairman of the Securities Industry Association jumps into the Glass-Steagall debate. But instead of championing the revival of Depression-era law that separated commercial and investment banking, he'd like to revive the SIA’s proposed legislation from the 1990s.

JPMorgan Chase will contribute about $1.2 billion to settle a price-fixing case brought by retailers over credit-card swipe fees.

Visa, and MasterCard have until Oct. 19 to formally request approval of a more than $6 billion settlement to a lawsuit over interchange fees, according to a filing unsealed in Brooklyn, New York, federal court.