Law and regulation

The threat of Basel III-related dividend restrictions could make it harder for the more than 2,000 banks with S corporation tax status to attract investors. S Corp banks were already on the decline.

WASHINGTON — The Federal Deposit Insurance Corp. sought to ease concerns about its view of banks' affiliations with online lenders, saying institutions correctly managing their third-party relationships "are neither prohibited nor discouraged" from processing payments for legal entities.

FHA Commissioner Carol Galante says mandatory accounting rules forced the agency to ask for additional funds and don't reflect significant improvements in its mortgage portfolio this year.

WASHINGTON — Trading revenue at banks and thrifts remained strong in the second quarter, despite falling off slightly from the first quarter, according to the Office of the Comptroller of the Currency.

JPMorgan Chase & Co. and Citigroup Inc. were among the banks that lost a bid to throw out a Federal Deposit Insurance Corp. lawsuit over $388 million in securities sold to a failed lender.

Higher interest rates have cut into bank profits in recent months, but that was only the start of the problem for big banks. The volatility is also hurting the value of their available-for-sale debt securities, which could cost them once Basel III takes effect Jan. 1.

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

Several institutions in one of the nation's hardest-hit banking markets have shed enforcement actions, or have hired new leaders, as they attempt to stage comebacks.

A Treasury Department program that supplies credit to small businesses spurred $1.9 billion in loans and created or saved 53,000 jobs in its first 18 months of operation, the department says.

Several Native American tribal leaders who were looking to block a civil investigation into their online payday lending practices have been denied by the Consumer Financial Protection Bureau.

Democratic lawmakers including Senator Elizabeth Warren today demanded that eight U.S. banks produce information about agreements they may have with colleges to encourage students to use their products.

Because third-party processors are on the hook for losses from fraudulent transactions, they have as much interest in eliminating bad actors as anyone.

Some bankers would liken the Consumer Financial Protection Bureau to "Saturday Night Live" 's famous land shark, but the agency is said to do its best work when — like a bunch of late-night TV writers — it invites broad input.

The Consumer Financial Protection Bureau on Thursday denied an appeal made by several Native American tribal lenders who were seeking to block a civil investigation into their online payday lending practices.

The Federal Housing Administration is facing a bailout for the first time in its almost 80-year history, raising a host of fresh questions about the potential for standalone legislation to the reform the agency.

The Federal Reserve Board has ordered SunSouth Bancshares of Dothan, Ala., to strengthen its board.

The number of foreclosures and "seriously delinquent" loans fell to their lowest levels since the financial crisis started while 90.6% of mortgage portfolios continued to perform well. Still, the number of loans past due by less than 60 days jumped slightly.

A bogus Florida bank is swindling consumers across the country with a fraudulent credit card scheme, according to the Office of the Comptroller of the Currency.

When it comes to financing the average middle-class American, our government-backed mortgage entities will accept nothing but the most pristine standards. Except when it comes to the millions of home loans for which the feds want lenders to toss standards out the window.