Law and regulation

Regulators struck down the living wills of five of the eight megabanks under evaluation, including JPMorgan Chase, Bank of America and Wells Fargo, requiring them to submit fixes to their resolution plans by Oct. 1 or face more stringent regulatory requirements.

WASHINGTON — The House passed a bill Tuesday that would create a new bankruptcy system for large financial institutions.

The Federal Reserve Board and Federal Deposit Insurance Corp. are set to give at least four megabanks a "harsh verdict" on their living wills, including JPMorgan Chase, according to an article by The Wall Street Journal, which cited "people familiar with the matter."

WASHINGTON — The Federal Reserve Board and the Federal Deposit Insurance Corp. should rethink the review process for big banks' resolution plans, the Government Accountability Office said in a report released Tuesday.

The Consumer Financial Protection Bureau named six people to top staff positions Tuesday, including the head of a new office for small-business lending.

Quicken Loans plans to appeal a recent federal labor ruling that the Detroit lender and other companies owned by Dan Gilbert violated employees' rights.

WASHINGTON — The Office of the Comptroller of the Currency released Tuesday its first risk appetite statement — a set of general guidelines on what level of risk the agency finds acceptable in various domains.

The Consumer Financial Protection Bureau faced hostile questions from two judges during oral arguments before a federal appeals court Tuesday as it sought to argue the constitutionality of its single-director structure in a lawsuit brought by the nonbank mortgage lender PHH Corp.

Data breaches have become scarily commonplace. But even small financial institutions can take action to thwart hackers and minimize losses.

The impending Consumer Financial Protection Bureau proposal will limit access to payday lending but it will not enable small-dollar lending alternatives for consumers.