Law and regulation

Jeff Plagge, the president and chief executive of Northwest Financial in Arnolds Park, Iowa, and the new chairman of the American Bankers Association believes regulation remains a large industry challenge.

Some of the largest U.S. banks said a proposed rule to increase the capital they hold against potential losses is arbitrary and would put them at a disadvantage against non-U.S. banks facing easier requirements.

New York State has slapped Prospect Mortgage with a $3 million fine for misleading homeowners on their interest rates, and has cited the mortgage lender for several other violations of state law.

JPMorgan Chase's acquisitions of Bear Stearns and Washington Mutual during the meltdown were once seen as bargains and more recently second-guessed in light of the bank's $13 billion mortgage settlement. The pain will pay off in the long run, experts say.

As banks improve their fundamentals, they are paying less in risk-based Federal Deposit Insurance Corp. premiums, helping to boost their bottom lines.

Bank of America Corp.'s Countrywide unit fraudulent sold thousands of loans known to be defective to Fannie Mae and Freddie Mac, according to Assistant U.S. Attorney Jaimie Nawaday in closing arguments in a lawsuit against the lender.

Sen. Elizabeth Warren is urging regulators to disclose the extent of their efforts to pursue cases against individuals and institutions, highlighting the work of the Special Inspector General of the Troubled Asset Relief Program.

Comptroller Thomas Curry’s 'heightened expectations' for large banks should include whether our communities are substantially better off as a result of their presence.

Diebold, a maker of ATMs and bank security systems, agreed to pay more than $48 million to settle allegations by the U.S. that it bribed officials in Russia, China and Indonesia.

A Treasury Department fund meant to boost loans to small businesses has spurred more than $10 billion in additional lending, the agency said Tuesday.

Diebold Inc., a maker of ATMs and bank security systems, agreed to pay more than $48 million to settle allegations by the U.S. that it bribed officials in Russia, China and Indonesia.

"Lawyers for the Federal Reserve Board filed an appeal Monday against a judgment that invalidated its 2011 rule placing a cap on debit interchange fees," writes American Banker's Donna Borak.

WASHINGTON — Financial regulators said Tuesday that lenders who only make so-called qualified mortgages should not be concerned about inadvertently triggering a fair-lending violation.

Lenders will be exposed to material put-back risk unless steps are taken to set industry standards for loan origination and processing.

The two cities join New York, L.A. and other cities in trying to force the banks that hold municipal deposits to make more loans in low-income neighborhoods. Some industry officials oppose them, while others welcome them.

Blacks and Hispanics are likely to find it more difficult to obtain credit or face paying higher prices when the "qualified mortgage" rule goes fully into effect, a process that could take up to seven years.

The Federal Reserve released Bank of New York Mellon (BK) from a regulatory action requiring it to tighten up its internal controls.

Fannie Mae and Freddie Mac have tightened their 'representation and warranty' framework. Other public sector mortgage funders, including FHA, VA, and the USDA should follow suit … or risk being left with lemons.

The new qualified-mortgage rule is pressuring vendors of loan origination systems to work with lenders to re-code their systems. There's a lot of work to be done before the Jan. 10 deadline.

Many payments companies see a conflict between innovation and regulation, with each side perceiving the other as out of touch with their needs, particularly when it comes to new technology.