Policy & Regulation

Under Rep. Jeb Hensarling’s proposed legislation, some banks might raise capital levels to get regulatory relief. Others might choose to grin and bear the current level of micromanagement. The result would be a more diverse banking sector.

Wells Fargo got less than it wanted in a federal tax-refund lawsuit, yet the bank's partial victory may spur billions of dollars in similar refund claims from companies that have done repeated mergers and acquisitions, tax lawyers say.

The scheme is used by borrowers who don't have enough income to qualify for a regular mortgage, so they apply for a higher-rate non-owner-occupied loan.

The Federal Housing Finance Agency has opened the door to experimenting with front-end credit risk transfer transactions, but it is not wide enough for some market players.

The Consumer Financial Protection Bureau is keeping lenders in the dark about how it will ensure borrower data is secure and private under the expanded Home Mortgage Disclosure Act reporting requirements.

While fintech companies are urging federal regulators to create a federal charter that would allow them to follow a single national standard instead of a myriad of state rules, such a benefit will almost certainly come with strings attached, including possible compliance with the Community Reinvestment Act.

Bank of England governor Mark Carney pledged to shore up financial stability as he warned that the risks from Britain's decision to leave the European Union have started to crystallize.

Fannie and Freddie regulator's first report on NPL sales shows more borrowers avoid foreclosures when their loans are sold to investors.

Some critics of the bureau think there is a renewed chance to change the bureau's structure. They point to the presidential election and recent setbacks to CFPB Director Richard Cordray, including a watchdog's report on employee discrimination and a pending legal challenge to its constitutionality, as laying the groundwork for a change.

U.S banks have come a long way from the early days of the stress tests, when it was unclear if any would pass. The majority of banks easily cleared the 5% minimum level for capital under the severely adverse scenario as well as the vaguer qualitative test the Federal Reserve Board imposes, suggesting institutions have finally gotten a handle on the process. Still, it's useful to see which banks improved from last year, as well as the few which fell toward the back of the back.