Law and regulation

Federal Reserve Board Chairman Ben Bernanke was called upon on Tuesday to come to the defense of the Dodd-Frank Act as a growing group of bipartisan lawmakers continue to insist that the financial reform law did not eliminate "too big to fail."

Comptroller of the Currency Thomas Curry attempted to dispute the notion that large banks are "too big to jail," telling a group of state attorneys general that his agency can take legal action and level "severe penalties" against an institution.

The Federal Deposit Insurance Corp.'s Quarterly Banking Profile described an industry gaining health, but it still faces several key challenges to maintaining growth.

Rep. Jeb Hensarling, the new chairman of the House Financial Services Committee, continued his criticism of the 2010 Dodd-Frank Act on Tuesday.

Small banks are concerned about the Consumer Financial Protection Bureau's enforcement potential over fair lending laws.

"Community bankers are growing increasingly concerned that the Consumer Financial Protection Bureau will eliminate one of their bread-and-butter products: balloon loans," writes American Banker's Kate Berry.

Though the agency has reported record loan volume in recent years, many lenders and borrowers remain reluctant to use its programs because they view its application process as too cumbersome and its eligibility requirements as too strict.

Federal Reserve Board Chairman Ben Bernanke said Tuesday U.S. regulators were committed to adopting an international liquidity requirement, but hinted at possible changes to fit the U.S. banking system.

Standard Bancshares in Hickory Hills, Ill., has completed a capital raise from private-equity firms and named two directors.

New York Attorney General Eric Schneiderman's office has ordered two Buffalo, N.Y. debt collection agencies to shut down for deceptive practices.

BlackBerry is testing whether the money-transfer business will help the smartphone maker keep users hooked on its instant-messaging service.

First Security Group (FSGI) in Chattanooga, Tenn., is poised to raise $90 million from institutional investors.

The Federal Housing Finance Agency hasn't explained why it stopped Fannie Mae from slashing its hazard insurance costs by hundreds of millions of dollars. The regulator's decision certainly benefits major banks, however, leading critics to cry foul.

House Financial Services Chairman Jeb Hensarling continued criticism of the Dodd-Frank law and the CFPB during remarks at a credit union conference on Tuesday.

If U.S. know-your-customer rules required banks to identify and scrutinize foreign recipients in addition to the senders of money, other countries would likely return the favor.

Banks and thrifts earned $34.7 billion in the fourth quarter to close out 2012 with the second biggest full-year profit ever, the Federal Deposit Insurance Corp. said Tuesday.

Fannie Mae and Freddie Mac have now become the gatekeepers for underwriting qualified mortgages. This guidance might be a safe harbor from litigation, but history indicates it may fail as a safe harbor from risky lending.

The FHFA abruptly killed a Fannie Mae plan earlier this month that promised to save the GSE hundreds of millions of dollars in force-placed insurance premiums. Critics see industry pressure as the culprit.

Firms managing some of the largest money market mutual funds in the U.S. are sending one clear message to the Financial Stability Oversight Council: Leave us alone.

Too-big-too-fail worries in the U.S. make the full sale of Royal Bank of Scotland's Citizens Financial Group in Providence, R.I., highly unlikely, despite speculation about potential buyers.