Policy & Regulation

Knee-jerk regulations passed in crisis moments can do more harm than good, but all regulation is a static framework applied to an ongoing, dynamic market. The tensions created are inevitable.

Regional lenders including Fifth Third Bancorp and BB&T Corp. are rooting for the Federal Reserve to let interest rates rise, a move that could help their results more than at some of the biggest Wall Street firms.

WASHINGTON — Senate Banking Committee Chairman Tim Johnson, D-S.D., and Elizabeth Warren, D-Mass., are urging the Federal Housing Administration to change an employment eligibility requirement for borrowers looking to modify their mortgages.

The Justice Department has entered talks with federal agencies and banking regulators to clear the way for marijuana dispensaries to obtain banking services, a top U.S. official said.

Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, said Tuesday that she is preparing to unveil an alternative housing finance reform proposal to rival more conservative legislation backed by many House Republicans.

The Federal Deposit Insurance Corp. resisted big-bank pressure to overhaul a rule, issued Tuesday, that clarified that U.S. bank deposits held in a foreign branch do not receive FDIC insurance, even if they can be withdrawn in the U.S.

The 12 Federal Reserve district banks warned of mounting threats to the U.S. payment system such as fraud, and called for streamlining transactions from the point of payment to the point of receipt.

Fannie Mae and Freddie Mac should be increasing the availability of loans to the most underserved segment of the market: the small rental properties across the country that are naturally affordable.

Remittances from the West are a lifeline for many people in the developing world, but anti-money laundering compliance requirements have made it hard for banks and money transmitters to service this market. Ellen Zimiles of Navigant Consulting discusses the delicate balance between regulatory and law enforcement concerns, on the one hand, and business and humanitarian goals on the other.

The most notable quotes from American Banker stories of the previous week. Readers are encouraged to add their own observations in the Comments fields at the bottom of each slide.