Financial institutions

California's Department of Business Oversight said Friday that it will drop its effort to suspend Ocwen Loan Servicing's mortgage license in California. The Atlanta servicer had failed for more than a year to provide its California regulator with requested information

The focus on raising the $50 billion-asset threshold determining which banks face the toughest provisions is highlighting interest in letting more community banks enjoy exemptions written into the law.

BB&T and KeyCorp's quarterly results showed how more diversified regional banks can turn to their insurance sales, investment banking and other fee generators for backup until interest rates improve. Whereas the smaller Huntington Bancshares needed strong loan growth in a quarter (and year) when fees fell.

Regulators have come to view macroprudential regulations as the guiding light of financial policy. But whether that strategy is working is open to debate.

The Financial Stability Oversight Council said its process of reviewing large nonbanks should include earlier engagement with companies and more public disclosure, among other changes.

Fifth Third Bancorp and U.S. Bancorp say they will delicately approach expenses in 2015 — or at least until rates rise. They are investing where they must, but pinching where they can, and trying to manage expectations on loan growth.

U.S. banks are cutting off payday lenders' access to a database of account information used to evaluate potential borrowers as regulators seek to rein in abusive practices.

In a State of the Union address declaring that “the shadow of crisis has passed,” President Obama said he will veto efforts to roll back financial reforms further while he reiterated support for a bill addressing cyber threats.

A Wall Street lobbying group said President Barack Obama's plan to raise $110 billion over the next decade through a new tax on financial companies could stifle economic growth and make banks less likely to lend.

Industry officials insist the Federal Reserve's extension of a key compliance deadline was meant to aid the implementation process, but critics say it could lead to another effort on Capitol Hill to roll back key chunks of the controversial regulation.

Facing the prospect of losing its license in California, Ocwen would be wise to settle its probe by state regulators in a timely manner, observers said. If it doesn't, the mortgage servicer could lose significant revenue and might even face a cash crunch.

Regulators on Thursday posted another round of abridged resolution plans for regional U.S. banks and scores of foreign-owned institutions.

FS Card announced Thursday that Republic Bank & Trust in Louisville, Ky., will issue its new subprime credit card, which is scheduled to be launched this spring.

Regardless of the outcome, MetLife's decision to fight the Financial Stability Oversight Council's ruling that the insurer is "systemically important" will have serious implications for the council's ability to rein in nonbanks.

The insurance provider MetLife said it will file a lawsuit Tuesday to challenge its designation as a systemically important financial institution, arguing the Financial Stability Oversight Council erred in making the determination.

Online lending marketplaces claim that they will revolutionize the financial services industry. But financial companies need a lot more than high-tech prowess to achieve sustained success.

A San Diego-based debt collector has agreed to pay $675,000 in civil penalties and give up $18 million won in court fights against 4,500 consumers, New York Attorney General Eric Schneiderman said Friday.

As with any marriage, banks that forge alliances with tech companies need to make sure they really know their partners. They may also want to consider a prenup.

Home values have risen fastest in markets where institutional buyers bought up scores of foreclosed homes and then rented them out. But these investor have largely curtailed their buying, and may even be ready to start selling off more properties to profit from the run-up in home prices. That could be good news for first-time buyers.

WASHINGTON — The Financial Stability Oversight Council voted Thursday to designate Metlife as a systemically important financial institution, the insurance company revealed, making it the fourth nonbank to receive that designation.