Law and regulation

A year ago we asked BankThink contributors to make bold predictions about how the financial industry would evolve in 2014. Here's a look back at their forecasts and the actual outcomes.

The Financial Crimes Enforcement Network, a division of the Treasury Department, has assessed a $1 million civil penalty against MoneyGram International's former chief compliance officer.

Benjamin Lawsky, New York's top financial regulator, sharply criticized banks for their failure to speed up the payment system, warning that the government may step in if they continue to lag behind.

The Financial Crimes Enforcement Network, a division of the Treasury Department, has assessed a $1 million civil penalty against MoneyGram International's former chief compliance officer.

Benjamin Lawsky, New York's top regulator, sharply criticized banks on Thursday for their failure to speed up the payment system, threatening that the government may step in if they continue to lag behind.

WASHINGTON — The Financial Stability Oversight Council voted Thursday to designate Metlife as a systemically important financial institution, the insurance company revealed, making it the fourth nonbank to receive that designation.

The Financial Stability Oversight Council put a careful foot forward Thursday on the path of designating the asset management industry as a potential economic threat.

The Consumer Financial Protection Bureau joined two attorneys general in an enforcement action against Freedom Stores for how it collected debts from service members.

Federal regulators announced Thursday that they are delaying implementation of certain aspects of the Volcker Rule's prohibition on bank ownership of private equity and hedge funds, giving institutions an additional two years to comply.

Because of a regulatory quirk, Lending Club and its competitors depend on banks to issue their loans. The set-up raises questions about the regulatory outlook for the fast-growing marketplace lending sector.

WASHINGTON — The Federal Deposit Insurance Corp. is keeping up the drumbeat on the importance of managing interest rate risk.

New York financial regulator Benjamin Lawsky revised his proposal for policing virtual-currency companies to eliminate some rules that Silicon Valley claimed would crush the fledgling industry.

The repeal of the swaps push-out provision will reduce banks' operational costs, but it makes little difference in terms of increasing the size of the government safety net. The reason: with or without the rule, the government protects the swaps contracts of the largest institutions.

WASHINGTON — A top White House adviser said President Obama will not allow any further amendments to be made to the Dodd-Frank Act through spending packages.

Big banks have successfully reversed a Dodd-Frank provision that would have required them to move swaps from their FDIC-insured depository institutions into uninsured subsidiaries. But in so doing, they have inadvertently thrust the issue of implicit subsidies back into the spotlight.

A new report from the Office of the Comptroller of the Currency finds potential industry threats from interest rate volatility, looser underwriting and other areas.

Federal Reserve Board Chair Janet Yellen fought back Wednesday against accusations that the New York Fed and its president are too close to the biggest banks, saying the central bank and William Dudley have significantly toughened oversight since the financial crisis.

The president's decision to bolster ties with the island nation will likely give banks relief from sanctions, as well as expanded opportunities for money transfers and the financing of U.S. exports.

The CFPB sued Sprint on Wednesday, claiming it allowed illegal charges onto customer's cell phone bills. The case is likely to be a test of whether the agency has the power to oversee telecommunications firms.

WASHINGTON — The Federal Deposit Insurance Corp. on Wednesday offered additional guidance to firms drafting resolution plans, this time focusing on strategies for cleaning up large subsidiaries.