Regulation

WASHINGTON — The Internal Revenue Service's internal watchdog Tuesday called on the agency to develop a concerted strategy to address the possible use of virtual currencies in tax evasion or money-laundering schemes.

While regulators discuss a potential federal fintech charter, another possible solution for firms trying to avoid multistate licensing already exists: the trust charter.

It is premature to say whether criticism of cross-selling and calls to break up the big banks will lead to action, but there is one area where a spinoff could actually be in the banks' interest.

Zions Bancorp. in Salt Lake City disclosed that it had entered into a "substantive settlement discussion" with the Justice Department regarding an probe into its payment-processing practices.

WASHINGTON — A group of financial regulators have announced final changes to its ratings system for examining banks' compliance with consumer protection laws. The update to the ratings generally reflects changes in the marketplace since the rating system was adopted in 1980.

As voters in California, Florida and nine other states decide whether to legalize marijuana, the results may force Congress to resolve differences between federal and state laws that have paralyzed much of the banking industry.

Deposits at big banks have swelled as corporations shifted funds around in anticipation of new money market rules. But industry experts describe the influx as a temporary blip that will serve mainly to provide yet another drag on margins in the fourth quarter.

WASHINGTON – The Federal Reserve's periodic survey of bank loan officers indicates that a decline in banks' share of commercial and industrial lending activity is likely related to nonbanks' ability to outcompete on both price and loan terms.

The Justice Department has widened its investigation of Fulton Financial’s mortgage lending practices to include four new units.

Guidance on regulatory expectations is helpful, but it is not yet clear whether such guidance gives financial institutions impetus to onboard or keep clients they perceive to be riskier.