Law and regulation

A number of state officials are trying to move deposits to community banks, though it is unclear if smaller institutions have the capacity or regulatory blessing needed to hold the funds.

An Oregon man was sentenced to eight years in prison Thursday for his role in a commercial collection scam that bilked nearly $6 million from 680 victims.

"I wouldn't want to be buying a foreclosure, then have the title examiner find that a robo-signer had participated in the process," says Massachusetts' register of deeds.

Banks and governments have not been required to account for the way in which, when important firms fall deeper into distress, implicit and explicit taxpayer guarantees absorb much of the markdowns that would otherwise have to occur.

The New Jersey bank offers cheap mortgage refis, but their fine print means that some customers end up paying additional interest or taxes — and complaining about the extra costs.

Given the recent developments in Europe, investment managers are wondering when the euro will come crashing down. Challenges are likely to fall upon operations and technology departments within investment management firms. The steps to limit risk should be taken now.

Two prominent Democrats — Sen. Richard Durbin and Rep. George Miller — asked the Consumer Financial Protection Bureau to examine fees charged to college students who receive financial-aid disbursements on their debit cards.

Bond investors tell lawmakers of their being shut out of the negotiations and of their reduced trust of the servicing industry.

The Fed on Thursday issued proposals that would raise banks' minimum capital requirement to 7%.

West Virginia Rep. Shelley Moore Capito has asked the Federal Deposit Insurance Corp. to provide Congress with a detailed analysis on the performance of the Transaction Account Guarantee program in order help lawmakers decide to whether or not to extend the four-year-old program when it expires Dec. 31.

In testimony before the Joint Economic Committee of Congress, Fed chairman also highlights lawmakers' role in strengthening U.S. economy.

Debate is heating up on the question of whether a nonworking spouse who relies on "household income" can qualify for a credit card account.

Comptroller Tom Curry faced a barrage of criticism over how JPMorgan Chase lost $2 billion under the OCC's nose. The hearing threw into turmoil the roles typically played by Democrats and Republicans and raised new questions about the Volcker Rule.

More banks and business owners would tap the U.S. Small Business Administration's loan guarantee programs if the SBA would streamline the application process, M&T Bank (MTB) Chairman and Chief Executive Robert Wilmers said Thursday.

Federal prosecutors Wednesday accused Washington D.C. Council chairman Kwame R. Brown with mortgage fraud, saying he lied on his home mortgage application as part of a scheme to buy a $50,000 power boat.

The nation's mega servicers are increasing their use of principal reductions in modifying loans as they fulfill obligations under the $25 billion robo-signing settlement with the state attorneys general and federal agencies, according to new figures released by the Treasury Department.

The Atlanta bank, which was forced to retreat from a $5 debit-card fee in the fall, is making it more difficult for some customers to qualify for free checking.

West Virginia Attorney General Darrell McGraw's office has made agreements with five out-of-state debt collection companies that were unlawfully working in the state. The companies agreed to pay a total of $772,286 in the form of refunds and debt forgiveness.

Directors and officers of banks, already under scrutiny from the regulators and law enforcement agencies traditionally charged with examining their actions, should take heed of a new player on the scene: the Office of the Special Inspector General for the Troubled Asset Relief Program. SIGTARP has already been involved in a number of significant financial institution investigations and appears poised to increase the scope of its activity.

If ratified by the Fed, the new liquidity ratios could constrain lending, at the worst possible time. A proposed capital buffer is theoretically countercyclical, but needs more work.