PayThink

Two of the state attorneys general in the suit against Dodd-Frank are looking out for investor and creditor rights. The law's orderly liquidation authority "violates the Constitution's separation of powers, the Fifth Amendment's guarantee of due process, and the guarantee of 'uniform' bankruptcy laws," they write.

An increase in capital requirements may reduce earnings, minimize returns and contribute to a stagnant environment where loan production is at a minimum and bank acquisitions are very few.

Market participants will quickly fill the home finance gap. Financing homes is an excellent business. The S&Ls were successful in this market for 50 years before they were destroyed by government policy.

The decision by three state attorneys generals to join a lawsuit challenging the constitutionality of the Dodd-Frank Act gives the suit a significant boost, improving its chances and broadening its scope.

The Federal Reserve chairman has the correct diagnosis, but limited tools to solve the problem. Meanwhile, inflation hawks are trying to cure the nation from a disease it doesn't have.

Central clearing for over-the-counter contracts will undoubtedly reduce risks, but the market still has multiple regulators and multiple sets of rules for different players and for different instruments.

The CFPB's issued a $200 million penalty against Discover in the agency's second enforment action. Cordray says expect more of the same, and he's sending a clear message that financial institutions should make sure they're not doing anything deceptive or misleading in marketing.

Fincen must be independent enough to be an honest broker in its rulemaking and enforcement network roles, while remaining responsive to the policy objectives of Treasury and statutory mandates from Congress.

The banking system should not be used to hide the cost of Congress's social programs.

Adequate communication, data retention, requests for approval and, ultimately, cooperation can minimize a company's risk of being investigated by the CFPB or state attorney general's office.