Law and regulation

WASHINGTON — The Federal Reserve announced the formation of a federal advisory council to examine and advise the board on matters related to community and consumer affairs.

A recap of the informed opinions (and the discussions they generated) on BankThink this week.

U.S. travelers may soon be able to hop on flights to Havana, but it will take much more time for the banking industry to feel the full impact of the Obama administration's new rules on economic links with Cuba.

The former head of the bankrupt Mt. Gox Co. bitcoin exchange was originally believed by U.S. investigators to be the secret mastermind behind the Silk Road online drug marketplace, an agent who infiltrated the website told jurors at the trial of the man prosecutors now accuse of running it.

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 and sister publications.

Total overhaul of Fannie Mae and Freddie Mac is a long shot, but Congress can pass measures that set the housing agencies on a path to reform. Mandating deeper mortgage insurance coverage for loans sold to the housing agencies would be a good place to start.

WASHINGTON — The Federal Deposit Insurance Corp. said Thursday that Charles Yi has been appointed as the agency's general counsel.

The Obama Administration's issued looser rules Thursday for transactions in the small island nation, but banks still face impediments.

Under pressure from Congress and credit unions, the NCUA significantly dialed back its proposal to institute risk-based capital requirements, raising the threshold of which institutions must comply and softening other provisions.

Facing the prospect of losing its license in California, Ocwen would be wise to settle its probe by state regulators in a timely manner, observers said. If it doesn't, the mortgage servicer could lose significant revenue and might even face a cash crunch.

Regulators on Thursday posted another round of abridged resolution plans for regional U.S. banks and scores of foreign-owned institutions.

Sen. Richard Shelby, R-Ala., is quickly assembling his team after being formally named head of the Banking Committee just last week, with many current and former staffers for the lawmaker taking top slots.

While put-backs and litigation risk are widely recognized as factors that have contributed to tight credit conditions, another factor — high servicing costs for nonperforming loans — is being overlooked.

The Bancorp in Wilmington, Del., said the Federal Deposit Insurance Corp. will assess an insurance premium surcharge after a broader ruling on the status of prepaid cards.

The Consumer Financial Protection Bureau said Wednesday that it was seeking comment on a so-called "safe student account scorecard" that colleges could use to see how banks structure the fees, features and "sales tactics" of financial products to students before forming a partnership.

Federal bank regulators will gather feedback on regulatory relief ideas at a public meeting on Feb. 4 at the Federal Reserve Bank of Dallas, the agencies said Wednesday.

The Federal Reserve's regular economic snapshot showed a moderate but consistent increase in credit quality and demand for banking services nationwide, though the report noted that sources of demand were highly variable and major financial stresses remained in some regions.

A federal agency's plan to tighten membership rules for Federal Home Loan banks would hurt community banks and credit unions — and could endanger the financial system, according to a broad array of stakeholders, including state regulators, lawmakers and institutions.

House lawmakers approved a package of financial services bills on Wednesday, including a controversial delay of the Volcker Rule, despite strong opposition from key Democrats.

The Consumer Financial Protection Bureau is considering releasing a tool that would show schools exactly how much financial institutions will charge borrowers for providing certain account services on campus.