First PacTrust Bancorp (BANC) suffered some growing pains in the second quarter on higher noninterest expenses.

U.S. Bank NA, which held customer money for Peregrine Financial Group Inc., knew or should have known the collapsed commodities brokerage had insufficient funds on deposit, a firm client claimed in a new lawsuit.

MasterCard (MA) is asking the European Union's highest court to overturn an EU decision that the company's cross-border card fees breach antitrust rules.

Redwood Trust, the dominant issuer of home-loan securities without government backing since the financial crisis, plans to jump into the market backed by taxpayer-supported Fannie Mae and Freddie Mac.

Illinois state regulators closed $88.9 million-asset Waukegan Savings Bank, the fortieth failure of the year nationwide and the sixth in the state.

The chairman of the House Financial Services Committee is urging federal banking regulators to extend the comment deadline on Basel III capital reforms for another 90 days to give bankers more time to digest the rules and better assess their impact.

A private-equity firm has plans to acquire a large stake in TriState Capital Holdings, a Pittsburgh company cofounded by a former state regulator.

First California CEO C.G. Kum has already received a hostile offer from PacWest's Matt Wagner, and other bidders — including U.S. Bancorp, Umpqua and City National — could join the fray.

Simply stated, merchants have agreed the Visa/MasterCard interchange fee settlement resolves all past disputes and establishes a system that will govern payments in the future. Nothing remains for Congress, or anyone else, to address.

SunTrust Banks (STI) in Atlanta will offer a new loan program that allows borrowers to refinance their existing private student loans.

It took more than a year for First PacTrust, which was new to the M&A game, to get banking regulators to approve its deal for Gateway Bancorp. The deal is scheduled to close in two weeks.

Across the industry, the formation of new credit problems has fallen to pre-recession levels. Assets continued to sour at a troubling pace at some banks in the second quarter of 2012, however.

The prepaid provider NetSpend is projecting an increase in revenue in the second half of the year as it aims to grab additional retail business from its chief rival.

City Holding of West Virginia is buying Community Financial, which had a 120% loan-to-deposit ratio at March 31. The deal allows City Holding solve an issue plaguing many community banks: how to find loans to offset record deposit growth.

Citizens Republic Bancorp Inc. (CRBC), the Michigan lender that has yet to repay a $300 million U.S. government bailout, is soliciting takeover bids from competitors, said three people with knowledge of the matter.

CertusBank has agreed to buy Myers Park Mortgage, a private mortgage company in Charlotte, N.C.

OceanFirst Financial announced Friday that its president and chief operating officer, Vito R. Nardelli, is stepping down at the end of August "to explore various professional and personal opportunities."

FHFA nixes principal reductions; Democrats seethe but bankers cheer DeMarco; end in sight for refi boom.

American Express Co., the biggest credit-card issuer by purchases, said it may be forced to refund customers as bank regulators weigh enforcement actions based on consumer-protection laws.

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