Law and regulation

Fed officials argued Tuesday that their swap lines are easing pressures on European banks, and that's good for U.S. banks and consumers. But House Republicans raised concerns.

The Consumer Financial Protection Bureau said Tuesday that certain borrowers who did not receive required mortgage disclosures should have a right to cancel their loans, as long as they notify their lender within three years.

If TAG is allowed to expire at yearend, it could spur community banks looking for extra liquidity to turn back to FHLB advances, which are at their lowest point in a decade.

The National Reverse Mortgage Lenders Association has raised the possibility of creating a hybrid reverse mortgage loan with members of the White House staff, Peter Bell, its president and CEO told attendees at the group's eastern regional meeting in New York.

The Department of Housing and Urban Development has ordered AmericaHomeKey, Inc., to immediately stop making FHA-insured mortgages and fined the Dallas-based lender $268,000.

The House voted Monday to pass a bipartisan bill that would expand protections for privileged information that financial institutions share with the Consumer Financial Protection Bureau.

The banking industry's longtime nemesis, Sen. Richard Durbin, is now pushing to allow borrowers to discharge private student loans in bankruptcy.

Regulators have lifted an informal agreement with the banking unit of MainSource Financial Group (MSFG) in Greensburg, Ind.

Wells Fargo made repeated promises in the past six months to turn over documents and emails to the Securities and Exchange Commission but repeatedly failed to do so, according to a complaint filed in federal court on Friday.

WASHINGTON — Banking regulators said Monday they are looking for feedback on proposed changes to guidance issued in 2001 on leveraged finance.

The 2009 Card Act required lenders to "consider" customers' "ability to pay" before granting credit on cards.

Unobtrusive until now, a set of unrelated security requirements is about to become pretty unpopular, and costly.

Wells Fargo is trying a new twist on long-controversial down-payment assistance programs, which give money to prospective borrowers who otherwise could not afford to buy homes.

The Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency are giving banks more time to comment on proposed stress-testing requirements for depository institutions.

Audit committees must follow rules already on the books that charge them with hiring and firing auditors. That includes booting an auditor that allows executives to put banks at risk of failure for their own enrichment.

In its first-ever auction of preferred stock acquired through TARP, Treasury is seeking to sell stakes in Banner Corp. (BANR) of Walla Walla, Wash., First Financial Holdings (FFCH) of Charleston, S.C.; MainSource Financial (MSFG) of Greensburg, Ind.; Seacoast Banking (SBCF) of Stuart, Fla.; Wilshire Bancorp (WIBC) of Los Angeles; and WSFS Financial (WSFS) of Wilmington, Del.

Behind closed doors they live in a constant state of fear, ducking calls from bank and servicing representatives, opening certified letters with shaking hands.

The Federal Reserve went down a dangerous road when it expanded its balance sheet with more than just Treasury securities in a bid to provide stimulus to the economy, Philadelphia Fed President Charles Plosser said.

Banks with less than $1 billion in capital are essentially locked out of the private equity market, due to existing laws such as the Bank Holding Company Act. A group of investment bankers, lawyers, and even some regulators want to make changes.

State regulators closed two banks on Friday, bringing the year's tally to 15. The two failures, in Georgia and Illinois, are expected to cost the Deposit Insurance Fund $ 95.6 million.