Policy & Regulation

Risk is like water, seeking the path of least resistance. If the path is narrowed, risk does not necessarily evaporate, as regulators wish, but often focuses as a more concentrated force. Accepting this alternative concept of risk has far-reaching policy consequences.

Federal Deposit Insurance Corp. Vice Chairman Thomas Hoenig said governments should require "subsidiarization," a step that would have significant implications for how the FDIC unwinds failed giants.

Bankers and retailers rehash recent data breaches at Senate hearings, as new legislation is pondered.

The Consumer Financial Protection Bureau levied a $83,000 civil money penalty on Monday against Connecticut-based First Alliance Lending, a specialty firm that focuses on providing loss-mitigation financing to distressed borrowers.

American National Bank in Oakland Park, Fla., has been freed from an enforcement action from the Office of the Comptroller of the Currency.

The chamber is scheduled to consider legislation this week that would drastically alter the structure of the Consumer Financial Protection Bureau.

Regulators are facing mounting pressure from lawmakers and the financial industry to address ongoing concerns about the treatment of collateralized loan obligations under the Dodd-Frank Act, which critics warn could effectively destroy the market.

Continued focus on this single, but complex Dodd-Frank provision will distract bank managers and regulators from finding ways to make the global financial system healthier.

The Federal Reserve Board will expand the amount of information it releases about bank applications starting in the second half of this year, the agency said Monday.

Attorney General Eric Holder is urging Congress to require companies to promptly alert consumers and law enforcement authorities to significant data breaches.