Law and regulation

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Former Treasury Secretary Larry Summers has withdrawn his name from consideration to be chairman of the Federal Reserve, President Barack Obama said in a statement.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

Former Rep. Barney Frank has joined a growing chorus of observers warning that an exemption in regulators' proposed risk retention rule for mortgages is overly broad.

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

The U.S. Consumer Financial Protection Bureau said it will police employer usage of payroll cards to ensure workers don’t face hidden fees or other abuses.

A class-action lawsuit filed in St. Louis City Circuit Court on Monday by former clients of Missouri-based consumer attorneys James Eason and Richard Voytas and The Eason Law Firm outlines allegations that serve as a reminder for consumers to be aware of a wolf in sheep’s clothing, according to the Missouri Collectors Association.

Jim Bruce, the director of a new documentary on the Fed, said Summers "doesn’t really have a background… in central banking" while praising Yellen’s character and integrity.

Old National is trying to shed assets ahead of an acquisition in hopes of staying below $10 billion in assets, a level that ensures increased regulation.

Most of the five-year retrospectives on the financial crisis were pretty boring, according to Editor-at-Large Barbara A. Rehm. But a few were very revealing about the industry’s future, including the massive onslaught of rules still on their way.

American Banker readers share their views on the most pressing banking topics of the week. As excerpted from the comments sections of AmericanBanker.com articles.

A 1999 memorandum explains why the DOJ refrains from prosecuting large financial institutions for their blatant regulatory violations, but why does it refrain from going after the employees who behaved badly?