Law and regulation

In her final column for American Banker, Editor-at-Large Barbara Rehm says there is no denying the system is safer than it was in 2007, and while further changes may be needed, it makes sense to "take a breather."

Barbara A. Rehm, the former editor-in-chief turned columnist for American Banker, is leaving the paper to join Promontory Financial Group.

The Consumer Financial Protection Bureau issued a consumer advisory report on Wednesday which is provoking concerns that the agency may be inadvertently encouraging borrowers to challenge their lenders in court after new mortgage rules go into effect in the new year.

Federal Reserve Board Chairman Ben Bernanke said regulators have made progress over the last year, but more reforms need to be made in order to keep the financial system safe.

The Independent Community Bankers of America and the American Association of Bank Directors warned regulators that the Volcker Rule will force banks to lower capital to dangerously low levels.

The $1.1 billion-asset company said in a regulatory filing Thursday that it sold bank and insurance trust-preferred collateralized debt obligations that cost about $8.3 million -- at an $850,000 loss.

Ellen Richey has become the new chief legal officer at Visa, where she will be responsible for legal functions as well as oversight of the card network's compliance and audit teams.

CLO managers have long lobbied against proposed rules requiring them to keep "skin in the game" of these deals, arguing that such a requirement would increase the cost of financing for U.S. companies.

BankUnited in Miami Lakes, Fla., has sold two batches of securities in order to comply with the Volcker Rule.

The Federal Housing Finance Agency has fallen behind in its examinations of Fannie Mae and Freddie Mac because it simply does not have enough examiners to properly monitor the government-sponsored enterprises, according to new report from the agency's watchdog.

A consumer advisory issued by the Consumer Financial Protection Bureau on Wednesday is stoking fears that the agency may be inadvertently encouraging borrowers to challenge their lenders in court after new mortgage rules go into effect next month.

During his final press conference as chairman, Fed Chairman Ben Bernanke cited progress made over the past twelve months, but left the door open to further changes.

WASHINGTON -- The Federal Reserve on Wednesday agreed to softly pare back its asset purchases by $10 billion, taking the first step in unwinding its controversial bond buying program.

If compliance burden sends traders packing for Russia, Brazil or Mexico, the U.S. would lose not only investment capital but also the ability to monitor algorithmic trading for manipulative practices.

What we have seen from the bank regulatory agencies is an unsustainable proliferation of rules. Big banks are taking on water to keep up, while community banks are being swamped.

JPMorgan Chase (JPM) has sued the Federal Deposit Insurance Corp. over Washington Mutual's legal liabilities, the Wall Street Journal reported Tuesday.

Financial Institutions already disclose their agreements with schools that allow marketing of credit cards, but the Consumer Financial Protection Bureau said that should be extended to debit, prepaid and other products as well.

JPMorgan Chase pressured customers to repay debts they did not owe, sold collections agencies rights to credit card accounts that had been extinguished in bankruptcy and tolerated frequent errors by its third-party collections attorneys, according to a lawsuit filed by Mississippi Attorney General Jim Hood on Tuesday.

The diverging responses of the nation's biggest bank and its largest retailer illustrate the broad divide that the Federal Reserve will be seeking to bridge in its effort to encourage a speedier payments infrastructure within a decade.

The final Volcker Rule is much friendlier to syndicated lenders and collateralized loan obligations than earlier versions. However, some banks will still have to divest some CLO holdings, and leveraged lenders face other regulatory challenges.