Policy & Regulation

WASHINGTON — Regulators provided more instruction Friday to smaller firms required under the Dodd-Frank Act to simulate their own failures.

New York Attorney General Eric Schneiderman has settled with debt collector Forster & Garbus regarding the firm's collection of payday loans.

In ordering large banks to revise their living wills, federal regulators proved that they are taking very seriously their mandate to never again use taxpayer dollars to rescue large banks, writes Mayra Rodríguez Valladares.

Doral Financial, the Puerto Rico bank that hasn't posted an annual profit for almost a decade, fell as much as 4.7% after disclosing it received a subpoena from the Securities and Exchange Commission.

Bill Ackman's Pershing Square Capital Management sued the U.S. government claiming revised terms of the 2008 bailout of Fannie Mae and Freddie Mac cheat investors of the profit from the mortgage-financing entities.

Chicago Federal Home Loan Bank has received regulatory OK to start pilots for its jumbo and government loan conduits.

The coming year expects to be hectic for banks' regulatory teams as a bottleneck of new rules come due, including everything from the proprietary trading ban to Basel III to a new mortgage disclosure framework.

While Fannie Mae should have a smooth transition to a new system, Freddie Mac might find the path more treacherous.

The U.S. Treasury Department said it will cut its stake in Ally Financial Inc. (ALLY) by selling stock on the open market in its first divestiture since an initial public offering in April.

Several institutions said their underwriters already exclude paid and unpaid medical debt from their calculation, raising questions about what kind of impact the new model will have on lenders.