Green Tree Servicing LLC will pay $232,000 to Vermont consumers and the state for the firm's faulty debt collection practices and the late payment of property taxes.

Republicans won a sizable victory late Tuesday, retaking the Senate after losing it eight years ago. Banks, too, largely benefited, as an ally of the industry captured a Senate seat in West Virginia, two credit union allies fell and a key Democratic senator squeaked past. Here's how election night played out for banks.

Cardinal Bankshares in Floyd, Va., is switching leaders again, though it is unclear when the new chief executive will step in.

Naming an inspector general at the Consumer Financial Protection Bureau would result in a net cost of $49 million between 2015 and 2024, according to a Congressional Budget Office report.

Sterling Bancorp in Montebello, N.Y., has agreed to buy Hudson Valley Holding in Yonkers, N.Y.

The bank unit of Carver Bancorp in New York has been released from a cease-and-desist order by federal regulators.

The Federal Trade Commission is suing debt broker Bayview Solutions LLC for posting the debt portfolios of 28,000 consumers online, including full bank account and routing numbers.

Santander Consumer USA, Ally Financial and Capital One are among the companies facing scrutiny over their loans to borrowers with low credit scores.

First Banks Inc. in St. Louis said that Terrance McCarthy will retire as president and CEO on Feb. 13. McCarthy will also step down from the board. Timothy Lake, president and CEO of banking unit First Bank, will succeed McCarthy.

KeyCorp, Ohio's second-biggest bank, reduced third-quarter profit by $24 million after discovering an accounting error tied to securitization trusts.

Bankers are worried that a new proposal will allow Farm Credit institutions to invest in non-farming businesses. The Farm Credit Administration denies those claims, stating that the proposal is designed to comply with the Dodd-Frank Act.

Flagstar Bancorp in Troy, Mich., which has been under pressure from regulators in recent months, has hired a new chief financial officer.

The ousted founders of CertusBank in Greenville, S.C., have filed a new lawsuit against a hedge fund investor.

Two Native American tribes have dropped their federal lawsuit against the state of New York that claimed its' campaign against payday lenders violated their rights as sovereign tribes.

Trinity Capital in Los Alamos, N.M., will restate earnings for 2009 and has determined that its financial statements going back to 2006 can no longer be relied upon.

ConnectOne Bancorp in Englewood Cliffs, N.J., has appointed Mark Santasieri chief credit officer.

Freedom Bank of Virginia in Fairfax plans to raise $4 million by selling common stock.

Capital One plans to lay off 111 employees in Houston, as it looks to consolidate back-office jobs responsible for deposit processing.

Banks are hiring armies of lawyers, accountants, compliance consultants and IT vendors as they prepare to comply with the Volcker Rule. Ironically, their attempts to fortify themselves with outsourced knowledge could expose them to more operational risk.

Until U.S. authorities can prove they have a better idea about how to provide short-term, small-dollar loans and other alternative financial services to people in need, they should stop trying to drive from business the lawful companies working to serve this market.