Law and regulation

Regulators are finalizing the details of a proposal designed to help buffer against a prolonged market crisis by instituting a liquidity requirement for financial institutions. The proposal is expected as early as this summer.

U.S. banking regulators plan to issue a proposal soon that would require U.S. financial institutions to hold long-term debt to minimize risks should a firm fail, a top Federal Reserve official said on Friday.

Over the past few years, Wall Street’s collapse has led to a crackdown that’s put many wrongful practices off limits, but it remains a place where a lot of very bad behavior continues to take place out in the open.

In an advisory, the Federal Deposit Insurance Corp. urged banks to be mindful of gaps in liability coverage for director and officer lawsuits – the same lawsuits the FDIC is filing against failed-bank managers.

A British court has forced the Wall Street Journal to backpedal after publishing the names of traders and brokers the government plans to charge with manipulating benchmark interest rates.

The Federal Reserve Board has taken action against the U.S. branch of Germany's Commerzbank for failing to comply with anti-money-laundering regulations.

Mortgage lender Household International Inc., which is now HSBC Finance Corp., must pay an estimated $2.46 billion in a class-action lawsuit claiming it violated federal securities laws.

Timothy Geithner hasn't been Treasury secretary for months, but he gets his name on the new $100 bills that went into circulation last week.

Federal Reserve Bank of Richmond President Jeffrey Lacker said bankruptcy without government support is "the first and most preferable option" in the event of a failure by a big financial institution.

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.

Regulators are nearing completion of a landmark proposal that would institute a liquidity requirement for financial institutions designed to help buffer against a prolonged market crisis.

Similar to the changes already enacted in the mortgage industry, the Consumer Financial Protection Bureau is pushing policymakers for an overhaul of the disclosure requirements and modifications programs of private student loan servicers.

Even if these loans did harm consumers – doubtful as they were freely entered into – the harm would appear quite minor compared to that which has been repeatedly imposed upon the U.S. Native American population.

The U.S. Senate's leadership in resolving the government shutdown offers evidence that it’s also likely to lead the way in reforming mortgage giants Fannie Mae and Freddie Mac. That's good news for the many bankers who favor the bipartisan Corker-Warner bill over a House alternative authored by Texas Republican Jeb Hensarling.

Where possible, regulators should avoid establishing static, prescriptive criteria that do not give lenders the ability to consider compensating factors in meeting the financing needs of qualified borrowers.

The Consumer Financial Protection Bureau is urging policymakers to revamp the disclosure requirements and modification programs of private student loan servicers, similar to changes already enacted in the mortgage industry.

Valley Financial (VYFC) in Roanoke, Va., has exited the Troubled Asset Relief Program after issuing $11 million in subordinated debt to an unnamed accredited investor.

Fed watchers are sharply divided over whether Yellen will rely on Tarullo to set banking policy for the central bank or if she will marginalize him. But there's a bigger question that matters more.

An executive order in February called cyberthreats one of the most serious national security challenges our nation faces. Too bad most cybersecurity personnel were furloughed as part of the shutdown.

Lenders continued to face headwinds in the third quarter as consumer loan demand weakened slightly in some parts of the country while others saw a small boost, according to a Federal Reserve Board report released Wednesday.