Financial institutions

Key proponents and critics of the 2010 financial reform law commemorated its anniversary by keeping the debate over its legacy front and center.

In one fell swoop, the Federal Reserve Board completed two of the most significant rules on its docket, completing a surcharge rule for the largest and most systemically risky U.S. banks and outlining the first capital rules for a nonbank systemically important financial institution.

In a surprise move, the Federal Reserve Board proposed significant changes to its stress testing regime, including dropping its Tier 1 Common Capital requirements and delay leverage and risk-based capital ratio requirements for banks with "advanced approaches" in risk-based modeling.

A recap of the informed opinions (and the discussions they generated) on BankThink this week, including ways to make megabanks pay for their “too big to fail” subsidy and how banks can help put an end to human trafficking.

Citigroup's second-quarter profit got a modest boost from Citi Holdings, a unit set up six years ago as a dumping ground for toxic assets. After losing billions for years, Citi Holdings has now become a minor profit source for its parent.

Final guidelines for dealing with failing institutions from the international Basel Committee include direct capital injections — something the Dodd-Frank Act tried to end in the U.S. — as a last-ditch option.

Wall Street's favored bank-resolution strategy would virtually guarantee future bailouts while imposing the costs on taxpayers and ordinary investors. At the very least, the damage can be mitigated with three key reforms.

Federal Reserve Board Chair Janet Yellen sounded at least open to the idea that new regulations have contributed to potential liquidity problems, but said more study is needed.

Nobody wants a big-bank bailout, but compared to the risk of contagion, it's the lesser of two evils.

Those looking for easy answers from a government report about what caused recent volatility in the Treasury markets — including whether regulation is to blame — were likely disappointed.

Struggling to win business in the age of QM, Impac Mortgage has relaxed underwriting requirements in hopes of attracting borrowers many other lenders won't touch.

Democratic presidential fron-trunner called for tougher reforms on Wall Street and harsher penalties for financial misconduct, but avoided more aggressive positions embraced by other candidates to break up the biggest banks.

While the Federal Reserve and other regulators extended the deadline for some parts of the Volcker rule, July 21 is the deadline for all banks to have a compliance regime in place.

The Senate Banking Committee Chairman Richard Shelby, R-Ala., convened a hearing where he and others criticized the Financial Stability Board for its lack of accountability and influence on U.S. regulators.

Democratic presidential candidate Martin O'Malley is calling for breaking up the biggest U.S. banks, revamping the Federal Reserve and pursuing criminal cases against financial institutions that have broken the law.

As Treasury Secretary Jacob Lew defended the legacy of the 2010 reform law, in another part of the capital a banker and Republican lawmakers pleaded for legislative changes.

MetLife and its allies are pushing back against the Financial Stability Oversight Council. But it's well worth imposing additional regulatory costs on large nonbanks if doing so helps prevent another crisis.

Twelve of the largest financial firms provided more information than they did last year in the public versions of their plans for breaking themselves up in a financial catastrophe, but whether they have done enough to reassure regulators won't be known for months.

There are plenty of opportunities for banks to collaborate with the tech startups that are driving rapid change in the financial industry. But first they need to find innovative ways to address systemic challenges like compliance as well as cultural differences.

After it all but stopped making real estate and development loans following the housing crash, Farmers & Merchants Bank has increased its real estate loans by more than 61% over the last two years. It's a figure that's likely to keep rising as California's real estate market heats up and the $5.6 billion-asset bank continues to add commercial real estate, construction and mortgage lending specialists to keep pace.