Law and regulation

JPMorgan Chase reached a $13 billion deal with the U.S. Justice Department that ends probes into the bank's sale of mortgage bonds, the largest amount paid by a financial firm in a settlement with the government.

Government officials hope to squeeze the giants down to size while executives are counting on thriving with modified business models. Reality lies somewhere in the middle.

The risk retention provision remains one of the top unfinished items for regulators implementing the 2010 Dodd-Frank Act. Regulators' second proposal may be more popular than the original, though it still leaves banks wary.

Just as U.S. policymakers are taking a more supportive approach to Bitcoin and other virtual currencies, countries that have taken a hands-off approach may soon weigh in with regulations that mirror those of the U.S.

WASHINGTON — Regulators released a tool on Tuesday that community banks can use to estimate how their capital matches up with new global standards.

Portugal's fourth-largest bank has received approval to open two representative offices in the United States.

JPMorgan Chase and the Justice Department reportedly have finalized the bank's $13 billion settlement of a civil inquiry into the sale of low-quality mortgage-backed securities that sunk in value during the 2008 financial crisis.

Rigorous capital standards have helped U.S. banks nearly recover from the financial crisis as many of their European counterparts continue to flail, according to a new study from the Boston Consulting Group.

JPMorgan Chase has resolved the last obstacles to a record $13 billion settlement of civil state and U.S. probes over the sale of mortgage bonds, clearing the way for a deal today after months of negotiations, two people briefed on the matter said.

WASHINGTON -- The Senate Banking Committee is scheduled to vote Thursday on Janet Yellen's nomination to become the first woman to lead the U.S. central bank, according to the committee's schedule..

JPMorgan Chase agreed to drop litigation against the FDIC over some mortgage bonds sold by Washington Mutual Inc., clearing the way for a $9 billion accord with state and federal officials, a person briefed on the matter said.

"I don’t know that we’ll get there by the end of the year," Philadelphia Fed President Charles Plosser said Monday, becoming the latest official to warn that regulators may not be able to finalize the Volcker rule by the much-promised deadline.

The swelling trillion-dollar student loan market is missing key data and regulations necessary to head off another financial crisis, according to Rohit Chopra, the Consumer Financial Protection Bureau's top official in charge of dealing with student loans.

The U.S. Justice Department is "aggressively investigating" possible manipulation of foreign exchange rates by a number of banks, Deputy Attorney General James Cole said.

The movement of people between the private and public sectors is only a problem when it results government officials identifying with the industries they regulate. In other cases, the comings and goings can actually help the financial system, says Neil Barofsky, a former prosecutor who recently joined law firm Jenner & Block.

Democratic lawmakers on Monday urged regulators to keep their promise to release a report by the end of the year that details an independent review of millions of borrowers who faced foreclosure.

Lenders are mostly relieved that regulators broadened an exemption for mortgage securitizers to avoid a 5% risk retention requirement, but some are focusing on the plan’s potential impact on securities backed by leveraged commercial loans.

Seeking to narrow the range of activities in which well-capitalized and well-managed bank holding companies can engage is a mistaken endeavor. Prohibiting activities will lessen competition, increase risk and raise costs for customers.

As a fast, low-cost payment system, Bitcoin provides healthy competition for legacy banks. It's also a bulwark for financial privacy and freedom of speech.

First Financial Service in Kentucky and State Employees' Credit Union in North Carolina believes their products are responsible and avoid taking advantage of borrowers. But they are concerned that the CFPB could pressure them to end their programs.