Law and regulation

The Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency are giving banks more time to comment on proposed stress-testing requirements for depository institutions.

Audit committees must follow rules already on the books that charge them with hiring and firing auditors. That includes booting an auditor that allows executives to put banks at risk of failure for their own enrichment.

In its first-ever auction of preferred stock acquired through TARP, Treasury is seeking to sell stakes in Banner Corp. (BANR) of Walla Walla, Wash., First Financial Holdings (FFCH) of Charleston, S.C.; MainSource Financial (MSFG) of Greensburg, Ind.; Seacoast Banking (SBCF) of Stuart, Fla.; Wilshire Bancorp (WIBC) of Los Angeles; and WSFS Financial (WSFS) of Wilmington, Del.

Behind closed doors they live in a constant state of fear, ducking calls from bank and servicing representatives, opening certified letters with shaking hands.

The Federal Reserve went down a dangerous road when it expanded its balance sheet with more than just Treasury securities in a bid to provide stimulus to the economy, Philadelphia Fed President Charles Plosser said.

Banks with less than $1 billion in capital are essentially locked out of the private equity market, due to existing laws such as the Bank Holding Company Act. A group of investment bankers, lawyers, and even some regulators want to make changes.

State regulators closed two banks on Friday, bringing the year's tally to 15. The two failures, in Georgia and Illinois, are expected to cost the Deposit Insurance Fund $ 95.6 million.

I am sad to see Cam Fine of the Independent Community Bankers of America resort personal attacks on me and my firm in response to my comment, "TAG Actually Gives Big Banks the Advantage." I can imagine that my comment stung a bit, but Cam and all of the people at ICBA know that I am one of the most vocal advocates for community banks in the U.S. Indeed, our firm is focusing a great deal of time and effort to help small banks raise capital and compete with the too-big-to-fail banks.

The consumer bureau's student-loan ombudsman told bankers this week that problems facing the sector could have long-lasting effects on the economy for years to come.

The Securities and Exchange Commission has accused Wells Fargo & Co. of failing to produce documents relating to an investigation of the bank’s mortgage-backed securities. Wells called the SEC's subpoena enforcement action "inappropriate and unwarranted."

Elizabeth Warren remains a big draw in the town she left last year to embark on her U.S. Senate campaign.

State bank regulators appointed Louisiana banking commissioner John P. Ducrest to serve as their representative on the Financial Stability Oversight Council.

The back-and-forth battle between banks and credit unions has been about more than tax status and business lending limits. It has also been about creative advertising.

John Walsh, who has been acting comptroller of the currency for nearly 18 months, made light of his situation Wednesday at an American Bankers Association conference.

The first director of the new Consumer Financial Protection Bureau discusses tradeoffs between enforcement and rulemaking, being responsive to consumers without being biased and the five-letter acronym known as UDAAP.

The Federal Reserve Board has entered into written agreements with two community banks: Remer Bancorp. in Minnesota and Orrstown Financial Services in Shippensburg, Pa.

Regulators have terminated a memorandum of understanding with a banking unit of Banner Corp. after the Walla Walla, Wash., company returned to profitability for 2011.

A New York foreclosure law firm has agreed to a $4 million settlement stemming from alleged abuses in their legal work, New York Attorney General Eric T. Schneiderman's office announced.

With all due respect to my friend Chris Whalen, the view from Main Street in Ashland, Missouri; Newman Grove, Nebraska or Pine Mountain, Georgia is much different than the view from the 26th floor of West 57th Street in New York City.

The Federal Reserve Board's stress test for the largest bank holding companies has been compared to a treadmill, on which patients are told to exert themselves so doctors can see how long they'll last. But, is the stress test in fact a financial analog to proven medical science so that we can indeed judge just how healthy big bank holding companies are after the Fed gets done with them?