Regulation

On the whole, large banks appear to have primed their books for a rebound in rates: levels of short-term assets relative to short-term liabilities are now higher than they have been during roughly the past decade. The postures of individual institutions vary widely, however.

The JPMorgan Chase CEO's role as industry punching bag du jour has more to do with bad politics than with bad business.

Grand Bankshares in West Palm Beach, Fla., has been ordered by the Federal Reserve Board to serve as a source of strength for its struggling bank subsidiary.

Republican lawmakers Tuesday tabled a set of bills that would curtail new financial regulations, after a more than $2 billion trading loss at JPMorgan Chase & Co. (JPM) was widely seen as bolstering the argument in Washington for stricter oversight of Wall Street.

The Justice Department has opened an inquiry into JPMorgan Chase & Co.'s (JPM) more than $2 billion trading loss announced by the company Thursday, according to a person familiar with the matter.

Federal Reserve Board Gov. Elizabeth Duke outlined a number of factors — such as the mortgage servicer settlement, the huge number of underwater borrowers and the failure to reform the GSEs — that are working to limit mortgage credit to healthy borrowers.

Treasury Secretary Tim Geithner said Tuesday that the $2 billion trading loss at JPMorgan Chase makes a "powerful case" for the financial reforms being implemented under the Dodd-Frank Act.

The bureau is still the lead agency, but Dodd-Frank's ban on certain harmful practices known as UDAAP could give other agencies a significant role through their enforcement authority over community banks.

The Senate Banking Committee has yet to decide whether it will call JPMorgan Chase officials to testify about the firm's $2 billion trading loss, according to a committee source.

Federal banking regulators on Monday provided fresh guidance on how the largest institutions should move ahead with their own routine stress testing exercises.