Law and regulation

Federal Reserve officials are considering a new program of buying mortgage-backed securities to boost the ailing economy, though they appear unlikely to move swiftly in this direction.

Was the Fed trying to convince itself foreclosure isn’t that bad? Would they roll out the pie charts and PowerPoint presentations to convince the rest of the financial community, Congress and the like, that homeowners don’t have to fear deterioration of lifestyle, maybe just a bit of downsizing?

Sen. Mark Warner, D-Va., and other lawmakers pressed a top Treasury official on whether U.S. regulators can predict the impact a crisis in Europe would have on domestic firms.

Capital One Financial reported a small increase in third-quarter profit Thursday as the bank's loan writeoffs and delinquencies continued to fall.

As many banks evaluate how much impact the Durbin amendment that limits debit card interchange will affect revenue, U.S. Bank says it is reserving judgment.

Groups similar to Occupy Wall Street have sprouted up in cities across the country like crab grass in August. Now into their second month of protests, these young Americans are objecting to bank bailouts, foreclosures, millionaires, and even capitalism.

Sen. Richard Shelby and Sen. Bob Corker both sounded skeptical of the value of the traditional mortgage product, raising questions about whether the GOP may seek to eliminate it as part of a housing reform overhaul.

WASHINGTON– U.S. Sen. Dick Durbin, D-Ill., is calling on Wells Fargo & Co. to explain why it needs to impose new debit card fees when it posted a 21% increase in third quarter profits.

The office of California's Attorney General on Tuesday subpoenaed Bank of America Corp., seeking to determine whether the bank sold and marketed mortgage-backed securities under false pretenses, the Los Angeles Times reported Thursday on its website, citing a person familiar with the investigation.

The federal government is seeking to shut down a California-based operation described as a "shake-down debt-collection enterprise" that has collected more than $9.4 million in about two years - some of it from individuals who owed nothing.

Illinois Attorney General Lisa Madigan's office filed lawsuits against three companies based in the state for alleging committing debt settlement and mortgage rescue fraud.

Banks that rely on old-fashioned credit risk models or credit ratings to calculate risk-based capital reserves will suffer when Basel III becomes adopted in the U.S., Moody's head of quant credit research says.

The watchdog agency said allowing member banks to choose some board members at the 12 Federal Reserve Banks can create the appearance of conflict of interest, and recommended the central bank take greater precautions.

This is a particularly tough period for regulators and for bankers. We are still in a tenuous recovery from the 2008 financial shock and are living in the midst of a weak, indeed, anemic economy. Most banks have forgone profits for balance-sheet repair, as they should, with success: U.S. balance sheets are stronger today than before the financial crisis in 2008.

A federal judge has ruled the massive $8.5 billion settlement between Bank of America and several important investors who lost billions on mortgage-backed securities will be heard in federal court.

Bank of America Corp., once the nation's largest residential mortgage lender, has dropped to third place, defeating the original purpose of its ill-fated takeover of Countrywide Financial Corp.

Regulators are keeping a close eye on how smaller banks handle commercial lending and regulatory changes stemming from the Dodd-Frank Act, officials from various agencies told attendees at the Risk Management Association's annual conference.

Following growing protests from small merchants against credit card companies, South Korea’s major card networks announced Oct. 17 that they would cut the interchange fees they collect from such merchants, confirms an official at the Credit Finance Association of Korea, which represents card companies, banks and insurers.

The Federal Reserve Board's Beige Book showed fewer loans to consumers as Americans focused largely on paying off their debt.

WASHINGTON — Sen. Dick Durbin is calling on Wells Fargo to explain why it needs to impose new debit card fees when it posted a 21% increase in third quarter profits.