Law and regulation

The structuring law that former U.S. House Speaker Dennis Hastert stands accused of violating highlights how federal prosecutors use the banking system as leverage.

Newly elected Rep. French Hill knows firsthand what it's like to lead a bank through a crisis and implement the sometimes complex rules of Dodd-Frank. That knowledge may prove key as he battles to make regulation simpler for small banks.

The Federal Reserve Board issued an enforcement action against State Street requiring the bank to beef up its anti-money-laundering and Bank Secrecy Act compliance measures within 60 days after finding the existing protocols were insufficient.

U.S. banks enjoyed their ninth straight quarter of total profits exceeding $35 billion, according to the Federal Deposit Insurance Corp.'s first-quarter report on the industry's health. The FDIC said the growth in net income was "broad-based", spurred by a solid increase in net operating revenue, while community banks once again outpaced the industry at large. Here are some key takeaways.

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The Federal Reserve Board on Friday announced the appointment of a senior official at the Federal Reserve Bank of Chicago to lead the central bank’s efforts to improve the national payments system.

The Federal Reserve Board on Friday announced the appointment of a senior official at the Federal Reserve Bank of Chicago to lead the central bank’s efforts to improve the national payments system.

Former Wells Fargo Chief Executive Richard Kovacevich on Friday said that "regulation is killing small banks."

A recap of the informed opinions (and the discussions they generated) on BankThink this week, including a call for a small-business loan brokers' code of ethics and why Congress needs to level the playing field for investors in bank obligations.

Bank of America has been ordered to pay a $30 million civil money penalty on allegations that it wrongfully used documents in litigation for debt collection and violated a law protecting members of the military and their families.

When New York-based private-equity firm Veritas Capital picked Jefferies Group this month to manage a $1.4 billion buyout loan, it passed over some much bigger Wall Street firms. Names like Morgan Stanley and Barclays and UBS.

A Florida court on Friday sided with the Consumer Financial Protection Bureau and the state over claims that a law firm charged illegal fees to consumers seeking foreclosure relief.

Federal regulators are working to streamline call reports for community banks in response to industry complaints that some of the requirements are unnecessary and increasingly burdensome.

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.

Discover Financial Services has entered into a written agreement with the Federal Reserve to improve its anti-money laundering procedures.

The Department of Justice is looking into whether the two dozen banks that facilitated bribes allegedly paid to FIFA officials knew they were doing so. The case is also a test of how much liability banks have over illegal payments they allow.

Provident Funding Associates, a private mortgage lender, has agreed to pay $9 million to settle allegations its brokers charged minorities higher fees and interest rates, federal regulators said Thursday.

Banks with more than $1 billion of assets are now required to report overdraft income in their call reports. Data released Wednesday reveals which banks rely most heavily on revenue from overdrafts — and which could be most vulnerable to looming changes in overdraft regulations.

Financial messaging organization Swift opened its KYC registry to fund distributors and custodians Thursday.

New servicing standards issued by the government-sponsored enterprises are unlikely to pose a hurdle for the biggest nonbank players in the market, but small servicers could find it more challenging.