PayThink

A dedicated federal insurance regulator would understand the risks of the insurance business – which are fundamentally different from those in banking – while monitoring systemic dangers posed by the largest insurers.

The Federal Reserve Board, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency released a proposal on Thursday that would institute tougher liquidity requirements on U.S. financial institutions.

The Consumer Financial Protection Bureau accused Borders & Borders PLC, a Kentucky law firm, of receiving illegal kickbacks from certain charges on real estate settlements.

Bloomberg estimates big banks receive an $83 billion taxpayer ‘subsidy’ a year. But calculating bank funding levels at normal, as opposed to crisis times, and accounting for Dodd-Frank compliance costs yields a very different estimate.

Politically connected firms might simply be more willing to participate in government-sponsored programs. Or, perhaps more disturbingly, banks might view their political connections as an insurance policy, which may encourage more reckless or risky behavior.

Jeff Plagge, the president and chief executive of Northwest Financial in Arnolds Park, Iowa, and the new chairman of the American Bankers Association believes regulation remains a large industry challenge.

Using return on equity as a performance measure without a risk adjustment is like trying to fly a plane without an altimeter. Sooner or later you will hit something.

Comptroller Thomas Curry’s 'heightened expectations' for large banks should include whether our communities are substantially better off as a result of their presence.

"Lawyers for the Federal Reserve Board filed an appeal Monday against a judgment that invalidated its 2011 rule placing a cap on debit interchange fees," writes American Banker's Donna Borak.

Lenders will be exposed to material put-back risk unless steps are taken to set industry standards for loan origination and processing.