Law and regulation

Remittances from the West are a lifeline for many people in the developing world, but anti-money laundering compliance requirements have made it hard for banks and money transmitters to service this market. Ellen Zimiles of Navigant Consulting discusses the delicate balance between regulatory and law enforcement concerns, on the one hand, and business and humanitarian goals on the other.

The most notable quotes from American Banker stories of the previous week. Readers are encouraged to add their own observations in the Comments fields at the bottom of each slide.

Electronic payment companies design, build and operate costly networks that provide secure payment transactions to merchants. Such providers incur significant costs for the services they provide and deserve to charge a market-based rate to their customers.

The House Majority Leader's failure to include mortgage finance reform in his legislative agenda for the fall has sparked more questions about whether Rep. Jeb Hensarling, Patrick McHenry and others can advance his legislation to the floor this year.

The Federal Home Loan Bank system, which has been hurt by successive quarters of low demand for advances, saw its strongest advances growth in nearly six years in the second quarter as banks began to see depositors exit.

The Federal Home Loan Bank of Chicago announced Monday it plans to issue mortgage-backed securities guaranteed by the Government National Mortgage Association, or Ginnie Mae.

JPMorgan Chase said it would stop accepting commissions from Assurant under a settlement reached Friday. The two firms have also agreed to pay up to $300 million to resolve allegations that they overbilled homeowners.

Buttercoin wanted to be a Bitcoin exchange, but after being discouraged or outright rejected by over 76 financial institutions, it chose a different path.

California’s legislature has voted to reform a money-transmission law that has come under fire for stymying payments innovation.

The Federal Deposit Insurance Corp. is selling $2.42 billion of bonds issued by Citigroup in a transaction that will eliminate U.S. government holdings in the bank linked to the 2008 financial crisis.

Reform of housing finance giants Fannie Mae and Freddie Mac gained surprising momentum in recent months. But it's at risk of grinding to a halt as the Capitol Hill is consumed with Syria and the confirmation of a new Federal Reserve chairman. American Banker editors discuss the prospects for GSE legislation amid a packed and contentious legislative agenda.

PNC Financial Services Group has begun winding down Market Street Funding, an asset-backed commercial paper conduit that funds credit for corporate clients.

The idea of bringing criminal charges against one of the nation’s larger banks has become untenable. The potential cost in jobs, probable shareholder losses and market turmoil would be horrific.

Congress must create mechanisms to dampen the volatility of housing finance, writes James Lockhart, the former regulator for Fannie and Freddie, on the fifth anniversary of their takeover by the government.

Neil Barofsky, who became known as a staunch advocate for transparency and accountability as the watchdog of the Troubled Asset Relief Program, is joining the law firm Jenner & Block as a partner.

The banking committees are set to resume debate over mortgage finance reform when Congress returns from August recess on Monday, but the issue will be just one of many facing lawmakers during a very busy fall.

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

The Federal Reserve System has taken regulatory action against Union City Corp. in El Reno, Okla., and released a Missouri holding company and its banking unit from a written agreement.

CFPB Director Richard Cordray has a knack for adapting his speeches to different audiences, including most recently invoking Moses' aides Aaron and Hur in a presentation to the National Baptist Convention.

Raj Date has added another lending veteran to his growing financial advisory and investment firm, Fenway Summer.