Law and regulation

Trading revenues at commercial banks fell sharply in the fourth quarter as concerns about sovereign debt and economic uncertainty in Europe kept many banks and their clients on the sidelines.

If former FDIC Chairman Sheila Bair was still a banking regulator, there might have been a lot more banks "failing" the stress tests.

New proposal would adjust definitions in the agency's premiums formula that banks had said was too burdensome. An FDIC board member said the plan may still be too complicated.

The current U.S. tax code represents decades of political manipulation rather than any grand design, and can certainly be improved upon, but only a tax neutral pro-growth tax reform can prevent the deficit from spiraling out of control. Hence tax reform should favor saving over consumption and productive work over leisure, but otherwise be neutral, allowing capital and labor to flow to their most productive use.

Wells Fargo is already contacting borrowers who might be eligible for a principal reduction as required under the $25 billion robo-signing settlement with state and federal law enforcement agencies.

The Federal Deposit Insurance Corp. proposed Tuesday changing the formula it uses to calculate quarterly assessment fees on banks, responding to complaints from banks that a rule put in place last year was unworkable.

Mortgage bondholders are crying foul — and lining up their lawyers — over losses they would incur if servicers write down investors' holdings.

Forget the four-letter dirty words. It’s the 10-letter one – regulation – that will really offend bankers.

Florida authorities have uncovered an international crime ring involving dummy corporations and fraudulent loans.

Mortgage bondholders are threatening legal action over the $25 billion national mortgage settlement, which will give the five largest servicers credits for principal writedowns that the bondholders may take.

The Federal Housing Finance Agency had sharp words Monday for state and local governments that have passed laws meant to help homeowners facing risk of foreclosure, blaming them for slowing down the foreclosure process.

To date, the public dialogue about the Transaction Account Guarantee program has been divided between the political and reputational risks of continuing this extraordinary federal insurance and the potential liquidity crisis that could ensue if the program ends prematurely and abruptly.

Ultimately he would like to end the Fed, but the Texas Republican is making an impact within the GOP on the more short-term goals of curbing inflation and increasing transparency at the central bank.

New guidelines say directors and officers could face investigation from the agency if they copy or remove bank records before a seizure.

Union Bank's deal to buy Pacific Capital is making the U.S. Treasury's decision to a quick write-down on its investment in the target on look like a shrewd choice.

As Chris Larsen steps aside as Prosper's CEO, the company — and the rest of the peer-to-peer lending industry Larsen helped create — has the opportunity to change its course and possibly even merge with one of the very banks it originally sought to displace.

Crybaby bankers, when not engaged in weeping over new rules, focus on attacking "shadow banking," whether in the form of payday lending or money funds.

SHANGHAI (Dow Jones) - Citigroup Inc. said Monday it has sold its entire 2.71% equity stake in Shanghai Pudong Development Bank, which will result in an after-tax gain of approximately $349 million.

In her column, "It's Time for Money Funds to Fess Up About Fluctuating Values," Barbara Rehm seems too intent on promoting regulations "that could make money funds miserable," regardless of their impact on investors, the financial system, and the economy.

During an appearance to business journalists, Cordray defended his agency's powers.