Policy & Regulation

Discover Financial Services in Riverwoods, Ill., continued its run of quarterly profit declines in the second quarter, due primarily to higher costs for compliance, marketing and customer rewards.

Just a day after the Dodd-Frank Act's fifth anniversary, Senate Banking Committee Chairman Richard Shelby launched a new attempt to make significant changes to the law, attaching his regulatory relief bill to legislation that would provide funding for financial services agencies.

The Consumer Financial Protection Bureau named Meredith Fuchs, the agency's general counsel, to fill the bureau's No. 2 leadership soon to be vacated by Steven Antonakes.

Despite recent changes to the Financial Stability Oversight Council's systemically risky designation process, Senate Banking Committee members feared that once a designation is made, there is no way for a company to remove that label.

Buyout heavyweight Accel-KKR just bought a stake in Banker's Toolbox, a software company that helps community banks flag fraud. The PE firm says it was on the hunt for investments in the compliance space given the regulatory climate.

WASHINGTON — The Senate Finance Committee voted Tuesday for a measure that would extend a temporary 10-basis point hike in Fannie Mae and Freddie Mac guarantee fees for an additional four years.

The acting head of New York's financial regulator has asked for details on the instant-messaging service that several large banks are developing, out of the concern that many of the same banks are under investigation for rate-rigging.

The federal government's first broad inquiry into the fast-growing peer-to-peer loan industry raises several important questions, including whether banks will lobby for a clampdown on these lightly regulated competitors.

WASHINGTON — The Federal Deposit Insurance Corp. issued a $140 million enforcement action against Banamex USA, a Citigroup subsidiary, on Wednesday for having Bank Secrecy Act and anti-money laundering deficiencies.

Discover Financial Services will refund $16 million to consumers and pay a $2.5 million penalty to resolve U.S. Consumer Financial Protection Bureau claims that the bank engaged in illegal student loan servicing practices.