Regulation

It's well known in Washington that August is meant to be a dead time, as lawmakers return to their home states to campaign and regulators take the month off. But last week proved the exception to the rule, with action on mortgage servicing, eminent domain and Basel III. Here are some of the highlights:

Regulators currently entrusted with the task of policing Wall Street are facing a well-funded, well-connected and politically shrewd beast.

Many in the industry have criticized the length — 1,400 pages — of the CFPB’s recently proposed rule on mortgage disclosure forms and fees. Why so many pages in order to get simpler forms?

The Federal Deposit Insurance Corp. sued banks including JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) over $388 million in securities sold to Colonial Bank.

First National Community Bancorp (FNCB) has finally caught up on its financial reports for 2011 — now on to 2012.

Banking trade groups are furious about a move by the National Credit Union Administration to notify more than 1,000 credit unions that they may not need to comply with a cap on business lending.

As expiration dates near for FDIC loss-sharing agreements inked in 2008, more failed bank buyers are looking to unload loans before the coverage runs out. As a result, they face growing pressure to book new loans to replace the ones they are trying to run off.

The Lansing, Mich., company has turned to court to try and recapitalize itself. The move would leave all existing stakeholders with a 53% equity stake in the company. Capitol, meanwhile, is still searching for an investor to take the other 47%.

The special inspector general for Tarp worked in the subbasement of the Treasury Department. Watchdogs given an inconvenient, dank, dark, dirty and desolate office maybe won't stay long.

Despite the lagging economy, which has left many students graduating from college with fewer, if any, job prospects, there is cause for optimism in the medium term, the Fed chairman told teachers at a Town Hall meeting last week.