Law and regulation

WASHINGTON — The Federal Reserve on Wednesday took another step in its effort to scale down a controversial bond buying program by an additional $10 billion.

Bankers think the regulatory environment is bad already, but it could get worse as regulators crack down harder on rules violators, hold directors and foreign banks to stricter standards and tackle "too big to fail," a top banking lawyer says.

WASHINGTON — The Consumer Financial Protection Bureau is charging PHH Corp. for running a mortgage insurance kickback scheme for more than a decade.

Crazy Woman Creek Bancorp (CRZY) in Buffalo, Wyo., is planning to convert to a state charter and repurchase preferred stock it issued to the Treasury Department under the Troubled Asset Relief Program.

It's still unclear what New York's planned "BitLicense" actually is, but the New York Department of Financial Services says its license is meant to encourage Bitcoin businesses to operate and innovate in the state.

President Obama hit on several important issues for bankers in his annual address to Congress Tuesday night, including mortgage finance reform, though as expected financial services issues largely took a backseat to other national concerns, like unemployment and the minimum wage.

It's still unclear what New York's planned "BitLicense" actually is, but the New York Department of Financial Services says its license is meant to encourage Bitcoin businesses to operate and innovate in the state.

President Obama used his State of the Union address Tuesday evening to call for the creation of a new government-backed retirement savings account and reiterate a call for comprehensive housing finance reform.

Richard Cordray, the Consumer Financial Protection Bureau's normally unflappable director, reacted angrily Tuesday to suggestions by lawmakers that he and his agency do not care about borrowers who purchase manufactured housing.

Japan, Germany, the United Kingdom and New Zealand are among the countries where local post offices provide a wide range of banking services.

The Senate voted to begin debate Monday night on legislation that would delay flood insurance premium increases for some homeowners.

Southern First Bancshares (SFST) in Greenville, S.C., used a private placement to convert preferred stock tied to the Troubled Asset Relief Program into common stock.

Charlie Shrem, the digital currency entrepreneur indicted on money laundering charges, has resigned as vice chairman of the Bitcoin Foundation.

New York's financial regulator today said that the state will propose regulations for oversight of virtual currencies such as Bitcoin this year.

Benjamin Lawsky, New York's financial regulator, today said that the state will propose regulations for oversight of virtual currencies such as Bitcoin this year.

Community banking representatives met with hostility a recommendation that the U.S. Postal Service consider offering financial services. The proposal raises questions about whether the Obama administration is trying to circumvent Congress and replace payday lenders with a government entity. American Banker staffers discuss.

Does Bitcoin require its own set of regulations, or can businesses that trade in the virtual currency and payment system be policed effectively under existing rules?

The Consumer Financial Protection Bureau issued a three-page advisory Monday in response to recent card and data breaches, encouraging consumers to monitor their accounts for unauthorized charges or debits.

Zions Bancorp. (ZION) in Salt Lake City reported a quarterly loss after recording charges tied to its portfolio of collateralized-debt obligations.

Bankers and their representatives harshly criticized a call for the U.S. Postal Service to offer financial products like debit cards and remittances to underbanked consumers, saying it was a dangerous and foolhardy idea.