Law and regulation

Julie Stackhouse, head of supervision at the Federal Reserve Bank of St. Louis, discusses the insights that resonated at the regulator's recent community banking conference — some encouraging for the future of small financial institutions, others less so.

A bipartisan group of House lawmakers sent a letter to the Consumer Financial Protection Bureau on Thursday expressing concern about the agency's proposal to rein in payday lending and other short-term credit, warning it could hamper credit availability.

Since Wells Fargo's settlement three weeks ago with federal regulators over charges thousands of employees opened up millions of fake accounts, the bank's troubles have only grown worse. Lawsuits by former employees have been filed, the bank's chief executive was subject to two disastrous hearings on Capitol Hill and lawmakers are opening calling to break the bank up. But it is the multiple investigations into the bank which may prove to be its toughest challenge. While some relate to the phony accounts, others touch on different issues — and they have been growing. Following is a look at investigations, recent settlements and other actions taken since the news broke in early September.

WASHIINGTON -- The Federal Deposit Insurance Corp. on Friday published its annual summary of insured deposits U.S. banks and thrifts.

Restoring consumer confidence in financial services won't be easy after the latest banking brouhaha, but the Consumer Financial Protection Bureau can help by proactively holding all mortgage loan officers to the same federal licensing standard.

Strong home sales are boosting originations of Federal Housing Administration loans and opening the door for first-time buyers — developments that could portend the mortgage insurance agency receiving a positive report from auditors this fall.

Strategies include developing formal agreements with partners defining the anti-money-laundering requirements and responsibilities that are expected of them.

American Banker readers share their views on the most pressing banking topics of the week. Comments are excerpted from reader response sections of AmericanBanker.com articles and our social media platforms.

BB&T Corp. has agreed to pay $83 million to settle a Department of Justice investigation over loans that failed quality control tests but were still insured by the Federal Housing Administration.

Artificial intelligence like IBM's Watson may not make bank compliance officers obsolete, but it could mean far fewer of them will be needed in the future, focused on higher-level tasks.

Community bankers are showing renewed interest in consumer lending but admit they may be losing ground to more tech-savvy players, according to a survey released Thursday.

In a stunning move, the European Union signaled that it will not follow the Basel Committee's recommendations on standardized credit, operational and market risk rules, citing concerns that the direction of the proposals would unduly increase capital requirements and stifle economic growth.

Last week's Senate hearing was bad for Wells Fargo CEO John Stumpf, but Thursday's House appearance was even worse. Lawmakers moved beyond calling for Stumpf to resign, and said Wells Fargo should be broken up and Stumpf should go to jail.

The U.S. Supreme Court will take up a free-speech clash with big stakes for retailers and credit-card companies, agreeing to decide the fate of laws in 10 states that limit how merchants can describe the lower prices they charge for cash transactions.

Mortgages jumped more than 20% to 7.4 million originations in 2015, reversing a more than 30% decrease a year earlier, according to housing finance data released Thursday. The data also showed that nonbanks accounted for fully half of new mortgage originations — the largest proportion in over 20 years.

The Consumer Financial Protection Bureau's proposal not only requires lenders to determine a borrower's ability to repay, but also forces creditors to follow the bureau's approach to making that determination.

California's treasurer blocked Wells Fargo from bond underwriting and other business relationships, as shockwaves from a fake accounts scandal in the company's retail bank rocked the fifth-largest municipal underwriter.

IBM will purchase Promontory Financial Group — a consultancy so influential it has been dubbed the industry's "shadow regulator" — in a move that could extend artificial intelligence into every aspect of banking.

The Office of the Comptroller of the Currency has moved forward on a plan to require large banks to establish recovery plans – a type of self-administered stress test to be shared with the agency.

Three Democratic senators led by Sen. Elizabeth Warren, D-Mass., have asked the Securities and Exchange Commission to investigate whether Wells Fargo and senior officials violated laws by misleading investors and firing whistleblowers while the bank oversaw the creation of 2 million phony accounts.