Regulation

Bill Ackman's Pershing Square Capital Management sued the U.S. government claiming revised terms of the 2008 bailout of Fannie Mae and Freddie Mac cheat investors of the profit from the mortgage-financing entities.

Chicago Federal Home Loan Bank has received regulatory OK to start pilots for its jumbo and government loan conduits.

The coming year expects to be hectic for banks' regulatory teams as a bottleneck of new rules come due, including everything from the proprietary trading ban to Basel III to a new mortgage disclosure framework.

While Fannie Mae should have a smooth transition to a new system, Freddie Mac might find the path more treacherous.

The U.S. Treasury Department said it will cut its stake in Ally Financial Inc. (ALLY) by selling stock on the open market in its first divestiture since an initial public offering in April.

Several institutions said their underwriters already exclude paid and unpaid medical debt from their calculation, raising questions about what kind of impact the new model will have on lenders.

Regulators should be focusing on the greatest risks to the system and the safety and soundness of financial institutions, rather than pushing lawful businesses to the shadow banking system, says consultant and former California regulator Walter Mix.

Though leveraging credit prescreening can be complicated, organizations that are proactive in developing clear policies and processes can safely market themselves to desirable customers, according to consultant Rich Walker.

Banks that own broker-dealers need to hold more capital to withstand runs and other shocks, said Eric Rosengren, the head of the Federal Reserve Bank of Boston said Wednesday.

The Federal Housing Finance Agency provided its first specifics Tuesday on how it intends to create a single security for mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac.