Law and regulation

The Senate is preparing to consider legislation that would allow credit unions to engage in more commercial lending, a proposal that the industry has long championed. This proposal is a really bad idea, but because of the political constituency behind credit unions it may actually be passed into law. In the event, the National Credit Union Association and the U.S. taxpayer may be facing significant losses in the future.

As Thomas Hoenig and Jeremiah Norton step into their new Federal Deposit Insurance Corp. roles on Monday, the dynamic for the agency's board could significantly shift.

The Treasury Department has not said if it intends to auction off more stakes it owns in community banks, but Yadkin Valley Financial (YAVY) in Elkin, N.C., wants to be ready in case it does.

Wells Fargo and JPMorgan Chase reclassified many second mortgages as delinquent, even though they are current, because the first mortgages to which they are subordinate have already gone delinquent.

American Banker readers share their views on the most pressing banking topics of the week. As excerpted from the Comments sections of AmericanBanker.com articles.

In a letter to Senate leaders, the head of a Glendale, Calif., credit union broke with the rest of the industry on legislation that would allow credit unions to make more commercial loans.

The Consumer Financial Protection Bureau is seeking comment on a proposal to revise a Federal Reserve rule limiting credit card fees issued before a borrower opens an account.

Charles Plosser, the president of the Federal Reserve Bank of Philadelphia, on Thursday sided with top regulators in saying they were unlikely to complete the so-called "Volcker Rule" by its summer deadline.

The Consumer Financial Protection Bureau is seeking comment on a proposal to revise a Federal Reserve rule limiting credit card fees issued before a borrower opens an account.

The Treasury Department's recent auction of preferred shares in six banks may signal that the agency has finally found a path to end its bank investments under the Troubled Asset Relief Program.

By backing off a plan to limit large up-front fees banks can charge on credit cards, the Consumer Financial Protection Bureau feels it has protected cardholders from other increased costs, the Associated Press reported April 12.

Jeff Gerhart, who took over as chairman of the Independent Community Bankers of America last month, also chairs a small bank in Nebraska. In a wide-ranging interview, the fourth-generation banker discusses competing against bigger banks and collaboration with the American Bankers Association.

NCAL Bancorp in Los Angeles and Raton Capital in New Mexico have been hit with enforcement orders from the Federal Reserve Board that require them to stabilize their ailing bank subsidiaries.

C&F Financial (CFFI) in West Point, Va., has repurchased all the shares it issued to the Treasury Department in 2009 and now just needs to buy back its warrant to exit the Troubled Asset Relief Program.

An estimated 577 lawsuits were filed against debt collection agencies and creditors in the March 16-31 period, including 525 Fair Debt Collection Practices Act (FDCPA) cases and 71 Fair Credit Reporting Act (FCRA) cases, according to data from U.S. District Courts. Some lawsuits cited more than one alleged violation.

A report from the Special Inspector General for Tarp said Treasury didn't do enough to facilitate participation in the Hardest Hit Fund, which has distributed just 3% of the funds available to struggling borrowers in the two years since it was created.

A U.S. district court has halted an operation that allegedly collected phantom payday loan debts that consumers either didn't owe to the defendants or didn't owe at all.

More than one month after the Oklahoma Senate passed the Bartmann Ethical Debt Collection Act by a 40-2 vote, the state's House of Representatives has referred the bill for additional study.

In its latest survey of economic conditions, the Federal Reserve said more bankers experienced higher loan demand by businesses and consumers.

The Federal Deposit Insurance Corp.'s two newest board members are expected to begin work at the agency on Monday, an agency spokesman said.