Policy & Regulation

The United States needs a new, 21st-century model for identifying, monitoring and reporting risk at banks. The model must be forward-looking, not backward-looking as the Camels ratings are.

Suffolk Bancorp in Riverhead, N.Y., has been released from a written agreement with the Office of the Comptroller of the Currency.

An unusual regulatory order penalizing a bank for favoring minorities, a scoop on a new bipartisan effort to craft housing finance reform and struggles to finalize Basel III were some of the most-clicked stories in Regulation and Reform last month. Following is a list of the stories you shouldn't miss:

Regulators may be overlooking a signal that could give them an opportunity to identify a new financial crisis, according to the Bank for International Settlements.

The legal fight over credit card swipe fees has been going on for years, but a resolution nears even as opponents' voices get louder. Here are some of the most noteworthy events in the ongoing courtroom case.

Joe Pierce, the president and CEO of Farmers State Bank, says a holiday ad, of all things, put him in an FDIC examiner's crosshairs.

It's time to kill CAMELS, says Richard J. Parsons, a Bank of America risk executive.

WASHINGTON — Wisconsin suffered its first bank failure in over two years late Friday as regulators closed a small institution in Kenosha and sold off most of its operations.

The Federal Reserve Board hit Naugatuck Valley with a memorandum of understanding on May 21, the $526 million-asset company said late Friday.

Liberty Deserved? A number of the comments on AmericanBanker.com and BankThink this week were strikingly sympathetic to digital currency issuer Liberty Reserve, which was indicted for alleged money laundering, and its customers. These readers were outraged that the authorities came down so hard on the Costa Rican outfit after serving megabank HSBC with a mere fine for similar money laundering charges. They were also skeptical of the government's explanations of its stance on virtual currencies and fearful for Bitcoin entrepreneurs and users who feel increasingly threatened by government encroachment. Commenting on American Banker Washington Bureau Chief Rob Blackwell's Q&A with Financial Crimes Enforcement Network Director Jennifer Shasky Calvery, one reader questioned her description of Liberty Reserve as the biggest money laundering operation ever. "Did you ask about her selective memory? HSBC's 'pervasively polluted' culture involved more money than Liberty Reserve, for instance." Another commenter saw ulterior motives in the prosecution: "The action against LR [had] nothing to do with money laundering. It was to undermine the growth of Bitcoin which [the government] considers more of a threat than the much greater money laundering by the likes of HSBC (which has more blood on its hands than a 1,000 LRs)." Our own "Monetary Future" columnist, digital currency expert Jon Matonis, noted that Liberty Reserve has been around since 2001, and wondered why the U.S. waited so long to prosecute the company. "Why are their 'crimes' of providing a neutral value transfer service more egregious than they were before?" But at least one reader found the government's position eminently reasonable, writing, "money transmitters need to identify people they transfer money for, and to report suspicious activity...we will either remain serious about money laundering/terrorist financing issues, or we can revert back to our pre-Sept 11 head-in-the-sand mentality." In his own column, Matonis talked to a venture capital fund dedicated to Bitcoin startups that's hired former Treasury officials as advisors, underscoring the increasing importance of compliance smarts to such businesses.