Regulation

Editor's Note, July 25, 2012: This and other BankThink opinion columns written by Joel Sucher bearing this note, published between October 2011 and June 2012, mentioned the law firm of Stephen J. Baum, Litton Loan Servicing, or both. The columns should have disclosed that Baum’s firm, working on behalf of Litton, had attempted to foreclose on the writer’s property in 2009. American Banker's editors were unaware of this history at the time the columns were published.

The Democratic senators argued Thursday that the proposal by regulators to implement the ban on proprietary trading contains a "JPMorgan Loophole."

Financial regulators told a House panel Thursday that requiring banks to admit wrongdoing as a condition of settlements could raise safety and soundness concerns.

Jon Rymer, the Federal Deposit Insurance Corp.'s chief watchdog, will temporarily run the Securities and Exchange's inspector general office while the SEC seeks a permanent watchdog, according to a person familiar with the situation.

The Senate Banking Committee announced Thursday that it has invited JPMorgan Chase CEO Jamie Dimon to testify about the firm's $2 billion trading loss. A bank spokeswoman said Dimon has agreed to testify.

Federal Reserve Bank of St. Louis President James Bullard reiterated Thursday banks deemed "too big to fail" should be split up.

The Senate confirmed Jeremy Stein and Jerome Powell to the Federal Reserve's Board of Governors on Thursday, ending a six-year stretch where the board operated at less than full capacity.

United Community Banks in Blairsville, Ga., received a subpoena and a notice of formal investigation from the Securities and Exchange Commission related to its deferred tax asset valuation allowances and goodwill impairment charges taken in 2009 and 2010.

Dangers involving people, processes and systems are now a greater danger to big banks than credit risk, according to Comptroller Thomas Curry. The statement may be one of many knockoff effects of JPMorgan Chase's recent trading loss.

The world's largest financial institutions may need to raise more than $500 billion to meet new global capital standards on the horizon, according to a report from Fitch Ratings that warned of the impact the rules could have on the ability of institutions to increase dividends or repurchase shares.