Law and regulation

Fannie Mae overpaid its servicers by roughly $89 million last year due to errors made during a manual review by a third-party vendor, according to an inspector general's report released Wednesday.

The first thing President Obama should have done after Larry Summers’ withdrawal was nominate Janet Yellen to be Fed chairman. Appointing the first woman to lead the Fed should be a historic moment. Obama has turned it into a consolation prize.

WASHINGTON — The Consumer Financial Protection Bureau on Tuesday updated its exam manual for payday lenders to include how examiners will check for harm against military personnel.

A white paper suggests the CFPB is headed in the wrong direction by continually adding more "clarifications" — and complexity — in rules and regulations, suggesting the agency should focus instead on a clear set of guidelines for institutions.

Lawmakers are scheduled to examine concerns on Wednesday that a hike in flood insurance premiums set to go into effect this fall could topple the still weakened real estate market.

Incessant lawsuits and enforcement actions convert a taxpayer problem into a shareholder concern, immune to lobbying efforts. The surge will lead to restructuring efforts, including spinoffs, as managers seek to simplify operations and improve performance.

In an email to employees, Jamie Dimon said the company is focused on eliminating products and services that aren't core to the business, while also boosting compliance with regulatory initiatives and improving oversight of outside vendors.

Bank of America Corp., the second-largest U.S. bank, said it could survive a deep U.S. recession that includes a 21 percent drop in housing prices and an 11.7 percent jobless rate.

In the wake of Larry Summers' withdrawal from consideration as Fed chair, many speculate that Janet Yellen is now the leading candidate to assume the post. Yet there are signs the White House may go in another direction, according to industry officials.

JPMorgan Chase (JPM) has agreed to pay at least $750 million to resolve U.S. and U.K. regulatory probes of its record trading loss last year, people with knowledge of the negotiations said.

The Federal Deposit Insurance Corp. has filed more lawsuits against the directors and officers of failed financial institutions in 2013 than in any year since the recession, according to a Cornerstone Research report released Monday.

Many regulators and pundits overlook the distinct difference between responsible lenders who offer a safe, reliable loan product, and unscrupulous lenders who commit fraudulent acts and scam consumers.

Comptroller of the Currency Thomas Curry strongly supported an accounting proposal on Monday that may force banks to increase reserves based on predictions of credit losses in addition to looking at past performance.

Citigroup could incur $21.2 billion of losses over nine quarters through mid-2015 and stay above minimum regulatory capital levels in a severe financial downturn.

Policy reform efforts will fall short until bankers at the largest institutions stop worshiping complexity, prioritize service and long-term relationships, and encourage employees to pipe up rather than hide problems.

American Express, Wells Fargo and Citigroup are continuing to sell controversial credit card payment protection and monitoring services, even as the industry braces for a second round of regulatory crackdowns.

Having one risk expert on the board’s risk committee is better than none, but a bit like having a general physician in an operating room when a heart surgeon, oncologist or anesthesiologist is needed.

Former Treasury Secretary Larry Summers has withdrawn his name from consideration to be chairman of the Federal Reserve, President Barack Obama said in a statement.

The Office of the Comptroller of the Currency shuttered the $3.1 billion-asset First National Bank in Edinburg, Texas, and it was sold by the Federal Deposit Insurance Corp. in a deal estimated to cost $637 million to the Deposit Insurance Fund.

The Consumer Financial Protection Bureau made additional changes to its mortgage rules on Friday in an ongoing effort to respond to lender concerns, but refused to yield to pleas that it delay the January implementation date.