Law and regulation

The Small Business Investment Company program may be less famous among banks than some of the SBA's other programs, but it enjoyed a record in fiscal 2015 that wrapped up this week. Stories like that of Opus Bank in California shed light on why.

The Consumer Financial Protection Bureau hit an indirect auto lender and a subsidiary with $48.3 million in fines and restitution on Thursday, accusing it of deceptive collection tactics.

The question of whether new liquidity rules are having a dramatic negative impact on capital markets continues to rile regulators and the financial industry, with policymakers providing ammunition to both sides of the debate just this week.

The long-delayed approval of the merger of M&T and Hudson City should have been a bright spot in postcrisis M&A, but a small footnote from the Fed quickly reminded bankers that dealmaking will remain a demanding process.

The Federal Housing Finance Agency is planning to issue a final rule in the next 12 months to require Fannie Mae and Freddie Mac to better serve underserved markets, including manufactured housing, the agency said Thursday.

Recommended reforms released by the Department of Education for servicers and private student lenders are part of intensifying federal efforts to help struggling borrowers.

JPMorgan Chase has paid off $3.56 billion of the $4 billion it owes in consumer relief credit as part of a 2013 settlement over marred mortgage-backed securities issued before the crisis.

Community West Bancshares in Goleta, Calif., has received regulatory approval to exit the Troubled Asset Relief Program.

A handful of moderate Democrats are supporting a controversial bill to restructure the Consumer Financial Protection Bureau, and are expected to help the House Financial Services Committee approve the legislation.

In comments to the Treasury Department, traditional financial institutions are calling for more oversight of an industry that is fast becoming a big competitive threat.

WASHINGTON — Senate Banking Committee Chairman Richard Shelby sent a letter to regulators this week raising concerns about the role of the Financial Stability Board in designating large banks as systemically risky and whether the international council has undue influence on U.S. policy.

Community banks merit more regulatory relief, particularly those that hold mortgage originations. That was a key message from James Bullard, St. Louis Fed president, during a community banking conference in St. Louis hosted by the Federal Reserve Board and the Conference of State Bank Supervisors.

Bankers need to show they are in control of relationships with outside vendors, must be ready to respond to M&A-related protests and should be as concerned about economic growth as interest rates, according to the St. Louis Fed's supervisory chief.

The Federal Reserve Board has approved the merger of M&T Bank in Buffalo, N.Y., and Hudson City Bancorp in Paramus, N.J., after more than three years of delay. The approval came on the day the regulator had set as a deadline to announce its verdict on the deal.

The Fed's policy of not adjusting check discrepancies of less than $25 has been in place for many years. Banks should be permitted to establish similar deposit adjustment limits without fearing regulatory sanctions.

A survey due to be released Wednesday reveals a wish list for anti-money-laundering specialists to help ease their process of assessing customer risk.

WASHINGTON — The Consumer Financial Protection Bureau is working with other regulators on examiner guidance to help ensure that the agencies enforce new mortgage disclosures in a "corrective" manner, not a "punitive" one, Director Richard Cordray said Tuesday.

Lawmakers from both political parties on Tuesday sharply criticized the Consumer Financial Protection Bureau's attempt to restrict or eliminate auto dealers' ability to markup a loan by citing their partnering lenders, arguing it would result in higher prices for consumers.

UBS Financial Services of Puerto Rico has agreed to pay $34 million to settle charges by the Securities and Exchange Commission and Financial Industry Regulatory Authority that it failed to supervise a former broker who had customers invest in UBSPR affiliated mutual funds using money borrowed from an affiliated bank.

The government appears to be speeding toward establishing uniform standards for student loan servicers in light of reports of pervasive problems in the administration of both private and federal loans.