Regulation

Groups similar to Occupy Wall Street have sprouted up in cities across the country like crab grass in August. Now into their second month of protests, these young Americans are objecting to bank bailouts, foreclosures, millionaires, and even capitalism.

Sen. Richard Shelby and Sen. Bob Corker both sounded skeptical of the value of the traditional mortgage product, raising questions about whether the GOP may seek to eliminate it as part of a housing reform overhaul.

WASHINGTON– U.S. Sen. Dick Durbin, D-Ill., is calling on Wells Fargo & Co. to explain why it needs to impose new debit card fees when it posted a 21% increase in third quarter profits.

The office of California's Attorney General on Tuesday subpoenaed Bank of America Corp., seeking to determine whether the bank sold and marketed mortgage-backed securities under false pretenses, the Los Angeles Times reported Thursday on its website, citing a person familiar with the investigation.

The federal government is seeking to shut down a California-based operation described as a "shake-down debt-collection enterprise" that has collected more than $9.4 million in about two years - some of it from individuals who owed nothing.

Illinois Attorney General Lisa Madigan's office filed lawsuits against three companies based in the state for alleging committing debt settlement and mortgage rescue fraud.

Banks that rely on old-fashioned credit risk models or credit ratings to calculate risk-based capital reserves will suffer when Basel III becomes adopted in the U.S., Moody's head of quant credit research says.

The watchdog agency said allowing member banks to choose some board members at the 12 Federal Reserve Banks can create the appearance of conflict of interest, and recommended the central bank take greater precautions.

This is a particularly tough period for regulators and for bankers. We are still in a tenuous recovery from the 2008 financial shock and are living in the midst of a weak, indeed, anemic economy. Most banks have forgone profits for balance-sheet repair, as they should, with success: U.S. balance sheets are stronger today than before the financial crisis in 2008.

A federal judge has ruled the massive $8.5 billion settlement between Bank of America and several important investors who lost billions on mortgage-backed securities will be heard in federal court.