Law and regulation

Banks that want to expand via M&A will face a special challenge in 2014. The failed-bank market has quieted, but regulatory costs and other factors that are expected to drive open-bank M&A haven't coalesced quite yet, says bank M&A advisor Randy Dennis.

Ally Financial Inc., the auto lender majority owned by the U.S. government, won regulatory approval to change its holding-company status, allowing the firm to keep an insurance business and a vehicle-auction website.

The number of homes in foreclosure fell sharply in the third quarter as fewer and fewer borrowers fell behind on their mortgages, according to a report released Monday by the Office of the Comptroller of the Currency.

The Volcker Rule may be finalized, but bankers still face many looming questions about the final shape of the Dodd-Frank financial reform law and other pending financial regulations. American Banker editors discuss what to expect in 2014 from regulators including the Federal Reserve, the Federal Housing Finance Agency and the Consumer Financial Protection Bureau.

Before consigning millions of Americans to lives of perpetual tenancy, we need observers on all sides of the housing reform debate to put aside rhetoric and focus on market realities.

The Office of Financial Research has made a number of improvements in its measurement of systemic risk but falls well short of providing a forward-looking assessment of emerging dangers.

CMS Bancorp (CMSB) in White Plains, N.Y., plans to terminate its sale to Customers Bancorp (CUBI) in Wyomissing, Pa.

The city of Miami has sued Bank of America, Citibank and Wells Fargo in U.S. federal court in Florida, for discriminatory mortgage lending practices against minority residents that resulted in a rash of foreclosures, city officials said Thursday.

Representative Mel Watt, who will leave Congress to become regulator of Fannie Mae and Freddie Mac, said he will delay a planned increase in the fees the U.S.-owned companies charge to guarantee mortgages.

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By assessing nearly $100 million in fines and restitution against Ally Financial on Friday, regulators sent a warning shot to all indirect auto lenders that they will be severely penalized if partnering dealerships charge higher interest rates or fees to minorities.

The Office of the Comptroller of the Currency has taken disciplinary action against the banking software provider Jack Henry & Associates for failing to get a processing center damaged by Hurricane Sandy up and running in a timely manner.

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

The Senate voted 59-34 Friday to end debate on the nomination of Janet Yellen to head the Federal Reserve.

Ally Financial (GKM) and Ally Bank will pay $98 million in fines and restitution to settle government claims that they discriminated against minorities through their indirect auto lending business.

Hudson Valley Holding (HVB) in Yonkers, N.Y., has hired a former regulator to be chief risk officer for its bank.

The American Association of Bank Directors and the Independent Community Bankers of America are objecting to a provision in the Volcker Rule requiring banks to shed trust-preferred securities.

First Citizens Banc (FCZA) in Sandusky, Ohio, has raised $25 million to exit the Troubled Asset Relief Program.

Ally Financial (GKM) and Ally Bank will pay $98 million in fines and restitution to settle government claims that they discriminated against minorities through their indirect auto lending business.

Compliance is a top growing expense, the regulatory bar has increased, banks needs better talent management and cybersecurity is everyone's problem.