Policy & Regulation

WASHINGTON — Bank of America will pay $772 million to settle allegations by two regulators that it engaged in unfair fee collection and marketing related to credit card add-on products.

WASHINGTON — Bank of America will pay $772 million to settle allegations by two regulators that it engaged in unfair fee collection and marketing related to credit card add-on products.

More than a century ago, the nation's leading bankers applied their considerable political leverage to creating a central bank that would act as their backstop in times of crisis. In so doing, they institutionalized "too big to fail," created a "reckless co-dependency" and a Fed-first mantra within the banks that gives ordinary borrowers short shrift in times of financial stress. So says Nomi Prins, author of All the Presidents' Bankers.

There's drama to come as regulators finalize a proposal requiring banks to self-assess their track records on diversity.

The Federal Deposit Insurance Corp. is projecting a nearly 8% decline in deposit insurance assessments this year with improvement in the indicators that determine institutions’ rates.

Members of the House Financial Services Committee grilled chief lawyers from the banking agencies on Tuesday, airing a wide range of grievances, including some related to a temporary Volcker Rule exemption and a Department of Justice crackdown on the payday loan industry.

The nationwide trade group for community banks is asking the Department of Justice to suspend its push to keep questionable merchants out of the mainstream payments system, arguing it is impacting community banks' competitiveness.

The eight largest financial institutions will have to raise roughly $68 billion over the next several years to meet a tough new leverage ratio finalized by regulators on Tuesday.

Cozy relations between bankers and presidents have faced plenty of criticism over the decades. But they've also proven to be a vital asset during crises and enabled the U.S. to emerge as-and remain-a financial superpower. So says Nomi Prins, author of All the Presidents' Bankers.

On its surface, the initial plan for a central bank looked like a fair deal for a country as geographically spread out as the United States. What did not receive publicity was the way in which it was structured to provide an easy supply of money to the nation's biggest banks.