Regulation

WASHINGTON — Federal Reserve Board Chair Janet Yellen said Tuesday that the largest banks need to face higher capital requirements to stem potential risks to the financial system.

The proposed Small Lender Mutual cooperative would be expensive for small firms to capitalize, and its securities may get inferior pricing compared to those issued by large banks and nonbanks.

Banks identified as systemically important to the global economy face tighter rules on how much business they can do with each other as part of a push to limit the chance a single failure would drag down multiple lenders.

The federal push to stamp out illegal online lending is having unintended negative consequences, an umbrella group for state banking regulators says.

The Senate Banking Committee is scheduled to vote on its bill to overhaul the mortgage finance market on April 29, but questions are now being raised about whether that date will slip, as supporters struggle to secure additional votes.

The Senate Banking Committee is due to vote April 29 on a bill to revamp the housing finance system, though that date may slip. The legislation, by panel leaders Tim Johnson and Mike Crapo, had an auspicious start, with an equal number of members from each party among the dozen who came out in support of it. That's enough to pass the panel, but not sufficient to bring it to the Senate floor. Here are the other Dems the lawmakers are hoping to woo:

Facebook is reportedly close to obtaining a license to operate as an electronic money institution in Ireland, a move that builds on the company's years of experience handling payments on its home turf.

As the U.S. and Europe impose sanctions against Russia, western banks are keeping closer tabs on their business dealings in the country. JPMorgan Chase's temporary hold on a Russian Embassy payment and the disruption of VISA services for SMP Bank could be just the tip of the iceberg.

Bankers are kidding themselves if they think bank-like supervision will ultimately catch up with nonbanks. Expect to compete on the current playing field, however uneven it may be.

Regulators are clearly interested in crafting further reforms to Community Reinvestment Act policy following relatively minor changes last year. Here's a guide to what they may target.