Law and regulation

The rampant unethical behavior at Wells Fargo suggests that bankers' ethics are still fundamentally awry eight years after the mortgage meltdown.

Wells Fargo Chief Executive John Stumpf was relentlessly questioned by lawmakers for nearly three hours Tuesday about what he knew of phony account openings and whether the bank would punish senior executives in what was arguably the worst hearing for a bank executive since the financial crisis.

WASHINGTON — Sen. Elizabeth Warren, D-Mass., called on Wells Fargo Chief Executive John Stumpf to resign Tuesday, saying Wall Street would continue to rip off customers until senior executives are held accountable.

Contrary to expectations about growing mortgage lending volumes, current industry trends suggest a gradual reduction in capacity for both lending and servicing that should alarm policymakers.

Virtual currency advocates are hoping a recent surge of support in Congress can help them accomplish a long-sought goal of creating a safe-harbor for companies that do not directly hold customers' funds.

Democratic presidential candidate Hillary Clinton released an open letter to Wells Fargo customers Tuesday in which she called the phony account openings "deeply disturbing," defended the Consumer Financial Protection Bureau and demanded that individual executives be held accountable.

Compensation rules mandated by Dodd-Frank are a potential tool to make executives accountable for misconduct like the Wells Fargo scandal, if regulators are willing to use it.

At the start of its fourth decade, the Automated Clearing House — a payment method most commonly known for facilitating payroll direct deposits — has found itself firmly in the crosshairs of the card networks and alternative payment providers.

A top CFPB official said Monday that lenders have adjusted their business models and practices to comply with new rules, while MBA CEO David Stevens called on the Federal Housing Administration to clarify its underwriting standards.

Wells Fargo's board of directors will decide whether to claw back any executive compensation that may have been tied to inflated sales metrics, the company said Monday in a letter to five U.S. senators.

WASHINGTON — Sen. Bob Corker, R-Tenn., dismissed calls Monday by a group with alleged ties to hedge funds to recuse himself from a hearing this week probing the recent enforcement action against Wells Fargo.

John Stumpf, responding to allegations that Wells Fargo opened millions of unauthorized accounts, said his bank failed its customers and the American public, according to remarks prepared for the Senate Banking Committee.

Contrary to their stated goals, the Fed's post-crisis regulatory and monetary policies may be contributing to U.S. income and wealth inequality, according to a new paper based on academic research from the Federal Reserve and foreign regulators.

Virtual currency advocates are hoping a recent surge of support in Congress can help them accomplish a long-sought goal of creating a safe harbor for companies that do not directly hold customers' funds.

All eyes will be on Well Fargo Chief Executive John Stumpf on Tuesday as he fights to defend himself before a Senate Banking Committee hearing against charges that he and other top bank executives should have earlier detected and stopped millions of phony accounts from being opened.

The Consumer Financial Protection Bureau can determine nearly anything to be an unfair, deceptive or abusive act or practice, and it's more likely to do so when lenders try to take advantage of regulatory loopholes.

The Department of Housing and Urban Development is taking a harder look at how mortgage lenders treat borrowers with limited English language skills.

The revelations at Wells Fargo are reminder to directors that when a bank's performance is too good to be true, it likely is.

The embattled bank is under pressure to claw back bonus pay from executives. Its decision figures to have ripple effects throughout the industry.

Online lenders have to make diversity efforts before they can be viewed as champions of economic justice, said Rep. Gregory Meeks, D-N.Y., during a Friday panel on fintech held during the Congressional Black Caucus Foundation's annual legislative conference.