Law and regulation

The U.S. Justice Department is looking into Citigroup's dealings with companies linked to Mexican billionaire Carlos Hank Rhon as part of an expanding investigation into the bank's money-laundering controls.

While marketplace lenders have introduced valuable innovation into financial services, they carry a fundamental flaw that threatens to undermine their business, destabilize financial markets and cause real economic hardship.

IMGCAP(1)]

WASHINGTON — Four more Federal Home Loan Banks have won regulatory approval to participate in a program that allows member institutions to sell jumbo mortgage loans through a conduit to Redwood Trust.

Banks that sold faulty mortgage-backed securities right before the crisis have suffered a string of legal defeats over the timing of government lawsuits, but some experts believe the industry may still have a shot in the Supreme Court.

In 1979, mortgage bankers worried that they could be undercut by "sleeping giants" like Merrill Lynch, Sears Roebuck and what was then called Master Charge.

American Banker readers share their views on the most pressing banking topics of the week. Comments are excerpted from reader response sections of AmericanBanker.com articles and from our social media platforms.

The Office of the Comptroller of the Currency has promoted Amrit Sekhon to deputy comptroller for capital and regulatory policy.

Rep. Sean Duffy, R-Wis., is pressing the Federal Deposit Insurance Corp. for information on how it will ensure financial stability in the wake of Puerto Rico's debt crisis.

As the Small Business Administration's flagship 7(a) loan program breaks records, its other loan program stagnates. Advocates for so-called 504 loans hope a drive to permit CRE refinancing will inject new life.

Banks, marketplace lenders and other nonbank lenders were dealt a setback when a federal appeals court declined to reconsider a ruling that has set off alarm bells across the consumer finance industry.

First NBC Bank Holding in New Orleans has delayed the release of its 10-Q, after it discovered an accounting error.

The Federal Housing Finance Agency is expected to issue a proposal soon that would require Fannie Mae and Freddie Mac to purchase manufactured housing loans from lenders.

Contrary to the results of a recent internal investigation, the Justice Department's Operation Choke Point circumvents due process in attempt to shutter lawful businesses like payday lenders and ammunitions dealers.

Homeownership is out of reach for too many Americans. The next president could change that with a few simple policies aimed at encouraging private capital to invest in residential mortgages.

A tip from a whistle-blower led regulators to crack down on Citizens Financial Group for ignoring discrepancies between customer deposit slips and the amount actually placed into the bank — and similar actions against other banks could be on their way.

FNBH Bancorp in Michigan has been unable to make an important move without its primary regulator's OK in the six years since its nonperforming assets hit double digits. It's an extreme example of the tension between past problems and future visions that freezes many banks.

The two subsidiaries of Citizens Financial Group will pay regulators a combined $35 million to settle charges they engaged in "unfair and deceptive" actions related to deposit processing.

Some community banks stick with rigid or outdated policies out of habit. That winds up hurting them when customers take their business to financial institutions that use technology to make transactions more convenient.

The longer the CFPB waits to implement tighter regulations for the payday lending industry, the more Americans will find themselves trapped in a cycle of unaffordable debt.