Law and regulation

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

Removing enforcement personnel from exams is just the start to a broad overhaul designed to make the process faster and free up personnel to pursue their own investigations outside of exams, according to Steven Antonakes, the CFPB's No. 2.

Regulators have proposed new rules that would require banks to accept private flood insurance on homes in high-risk areas.

The Consumer Financial Protection Bureau penalized two nonbank mortgage lenders, Mortgage Master and Washington Federal, for failure to properly comply with the Home Mortgage Disclosure Act of 1975.

Even though the U.S. payments industry's regulatory environment can be difficult for startups, there is plenty of investment being made in the market for new disruptive technologies.

The Office of the Comptroller of the Currency has updated its accounting guidelines to reflect the new regulatory-capital requirements outlined in Basel III set to take effect next year.

The Treasury Department expects to receive roughly $66 million from a recent auction of stakes it owns in seven banks from the Troubled Asset Relief Program.

A law intended to make the National Flood Insurance Program sustainable could force many owners out of their homes and hurt the housing recovery.

A lesson for Congress in liquidity risk and market contagion.

SunTrust Banks (STI) has agreed to pay $1.5 billion to resolve claims of shoddy mortgage lending, servicing and foreclosure practices.

WASHINGTON — The Federal Deposit Insurance Corp. told banks Thursday to be wary of liability insurance policies that could still force directors and officers to have to pay civil damages.

Proposals for a supplemental leverage ratio would treat cash, and the safest cash-like assets, like any risky asset. This may discourage banks from keeping their current high levels of liquidity.

The Shared National Credits report cited alarm about syndicated loans made to borrowers with higher leverage than normal, with 42% of such credits "criticized" by regulators.

Treasury Secretary Jacob Lew and financial industry officials warned lawmakers on Thursday about the multitude of economic consequences that a default on government debt could bring, just days before the country reaches its borrowing limit.

Ten large U.S. and European banks are using software from Digital Reasoning to uncover employees' corrupt activities.

Barclays Plc failed to pay $488 million in fines and disgorgement demanded by the U.S. Federal Energy Regulatory Commission for rigging California electricity prices, the agency said in a court petition seeking to enforce the July order.

Julie Stackhouse at the St. Louis Fed admits that some regulators who once questioned the role of smaller institutions are now committed to hearing their concerns and making improvements.

With the CFTC on hiatus during the government shutdown, the industry should take the opportunity to consider the potential damage for a market that has become integral to banking.

The Consumer Financial Protection Bureau has decided to pull its enforcement attorneys from exams with financial companies after banks declared their opposition of their presence.