Law and regulation

The GSEs are the essence of highly leveraged, systemically important financial institutions, based on their size, interconnectedness and the lack of substitutability

Charles H. Keating, whose leadership of a California savings and loan made him the face of a banking crisis and a millstone around the politicians who tried to help him, has died. He was 90.

An upcoming Senate Banking Committee vote this month could be the tipping point needed for housing finance reform to actually happen — or it could signal yet more stagnation. American Banker editors discuss the political stakes and potential pitfalls as Congress attempts to change how the government supports the mortgage market.

WASHINGTON — The Federal Reserve Board is scheduled to meet next week to vote on a tougher leverage ratio for the country's eight largest U.S. banks, the agency announced Tuesday.

Rep. Maxine Waters' plan to overhaul the mortgage finance market may be dead-on-arrival in the House, but it is still likely to help determine the fate of a separate Senate bill seen as the leading congressional attempt to enact reform.

HSBC has "much work" to do as part of a $1.9 billion agreement with the Justice Department to avoid prosecution for money laundering, the U.S. said in a status report on the U.K.-based bank's performance.

Eliminating payday lenders would create a void that banks, thrifts, and credit unions cannot or are reluctant to fill. With greater transparency, payday lenders can become a viable partner in the small-cash market.

The Consumer Financial Protection Bureau needs to improve the efficiency of its program for direct supervision of banks and non-banks, the inspector general at the Federal Reserve, which audits CFPB activities, said.

Tax provision would help distressed homeowners seeking workouts and short sales from being penalized by the IRS.

Former Rep. Barney Frank said regulators are going against congressional intent in their latest risk retention proposal, while former Sen. Chris Dodd acknowledged that their law would need some changes to make it work as envisioned.

The Consumer Financial Protection Bureau has employed unusual practices in its efforts to guide the public's perception of it. They've included funding the trip of a consumer advocate who posed a question from the audience of one of its events and regularly releasing information at midnight to prevent critics from weighing in on the first wave of media coverage.

U.S. agencies trying to ensure the financial system is strong enough to withstand another crisis have settled on one of the last pieces of their regulatory apparatus to limit the size of bank debt, according to two people briefed on the discussions.

Despite efforts to reform the global banking system, the perception that the world's largest financial institutions are "too big to fail" has yet to be eliminated, according to a report issued Monday by the International Monetary Fund.

The Federal Home Loan banks' Office of Finance said members are borrowing more, yet net income for the system fell from the previous year.

Two senior House Democrats are raising concerns about a highly anticipated House Financial Services subcommittee hearing scheduled for Wednesday to examine grievances filed by employees at the Consumer Financial Protection Bureau.

The number of financial complaints filed by consumers increased nearly 80% last year, to 160,000, according to a report released Monday by the Consumer Financial Protection Bureau.

WASHINGTON — The Commodity Futures Trading Commission and the Office of Financial Research on Monday reached a deal on a joint project to collect data from registered swap repositories.

Small banks' increased compliance costs could lead to fewer relationship managers, streamlined service models and increased costs of credit. As such, many small business and middle-market customers may simply choose to take their business elsewhere.

To make the process fairer to small banks, regulators should issue community bank summaries during the proposal stage, not when releasing final rules. They also should do more outreach to small banks and extend comment periods on major rules, writes the ABA's Hugh Carney.

The Federal Deposit Insurance Corp. issued two consent orders and terminated 21 enforcement actions in February, according to its latest roundup of regulatory orders.