Law and regulation

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

With Chairman Hensarling's plan to overhaul the mortgage finance market stuck in limbo, several Democrats have begun work on alternative proposals that could further divide support for the GOP bill.

Six financial regulators issue new racial and gender diversity policies. Directors of each regulator's diversity division helped form new policies that were required under the Dodd-Frank Act.

Five banking and credit union regulators issued a joint statement Tuesday stating that lenders who provide qualified mortgages should not be concerned about inadvertently violating the fair-lending law known as the Equal Credit Opportunity Act.

A dedicated federal insurance regulator would understand the risks of the insurance business – which are fundamentally different from those in banking – while monitoring systemic dangers posed by the largest insurers.

Federal banking regulators are recommending banks bolster underwriting standards for leveraged commercial loans as borrowing of the high-risk debt approaches levels not seen since before the financial crisis.

The Federal Reserve Board, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency released a proposal on Thursday that would institute tougher liquidity requirements on U.S. financial institutions.

The Consumer Financial Protection Bureau accused Borders & Borders PLC, a Kentucky law firm, of receiving illegal kickbacks from certain charges on real estate settlements.

Edward DeMarco, acting director of the Federal Housing Finance Agency, said Thursday that the agency has no immediate plans to lower the size of the loans the government-sponsored enterprises can buy, though he left the door open for future reductions.

Regulators unveiled a proposal Thursday that would institute tough new liquidity requirements on U.S. financial institutions, acknowledging that their plan is harsher than a global framework suggested by international supervisors.

The Consumer Financial Protection Bureau is suing a Kentucky law firm on allegations that it received illegal kickbacks from certain charges on real estate settlements.

Chad Fuller and Victoria Holstein-Childress have joined the Atlanta law firm to help defend banks against lawsuits and government probes.

Two senior House Democrats introduced legislation Thursday designed to give regulators additional authority to go after bank executives at institutions involved in money laundering scandals.

A paper released by the Bipartisan Policy Center suggests that the so-called "push-out" rule for banks' swap business may be unnecessary if regulators effectively implement Dodd-Frank's ban on proprietary trading.

Bloomberg estimates big banks receive an $83 billion taxpayer ‘subsidy’ a year. But calculating bank funding levels at normal, as opposed to crisis times, and accounting for Dodd-Frank compliance costs yields a very different estimate.

The Federal Deposit Insurance Corp. has agreed to cooperate with China's central bank to address potential cross-border issues in resolving failing institutions.

Issuers of store-branded credit cards are facing new regulatory scrutiny over big retroactive interest charges that can hit borrowers at the end of a promotional period.

The European Parliament demanded a halt to bank-data transfers to U.S. counter-terrorism investigators because of possible violations of privacy, the latest international outcry over alleged American spying.

Politically connected firms might simply be more willing to participate in government-sponsored programs. Or, perhaps more disturbingly, banks might view their political connections as an insurance policy, which may encourage more reckless or risky behavior.

WASHINGTON — Financial regulators are seeking to establish new standards to gauge the racial and gender diversity policies at companies including everything from employees, customers and suppliers.