Law and regulation

A recap of the informed opinions (and the discussions they generated) on BankThink this week.

The financial system will be safer if accounting standards force banks to incorporate risk into the way they value and report cash and cash equivalents.

On its face, the House vote late Thursday to approve a spending bill that included an unrelated provision written by Citigroup was a big legislative victory for the bank and its fellow Wall Street behemoths. Yet it’s also a victory that comes at a high price.

The House narrowly passed a massive $1.1 trillion spending plan Thursday night, moving the bill to the Senate, where the fight over a Dodd-Frank Act derivatives measure is likely to continue.

Federal Housing Finance Agency Director Mel Watt's decision Thursday to stand up the affordable housing trust funds sharply divided lawmakers along party lines, with Democrats welcoming the decision as overdue while Republicans denounced it as a mistake.

WASHINGTON — The Consumer Financial Protection Bureau took action Thursday against two companies for allegedly running "scams" that promised relief for struggling student loan borrowers.

International bank regulators finalized changes Thursday that will greatly diminish the role of external ratings agencies in weighting the risk of securitized assets in capital requirements.

There's little point to Fannie and Freddie's large profits if that money is remitted to the Treasury rather than making the GSEs more financially stable.

After a six-year delay, Fannie Mae and Freddie Mac will finally begin setting aside a portion of their revenues to fund the development of rental housing for low-income families.

The House unanimously approved a measure Wednesday night clarifying the Federal Reserve's ability to set separate capital standards for systemically important insurers.

More robust risk management frameworks and technology infrastructures are at least as important as higher capital standards in preventing another global financial crisis.

WASHINGTON — The Consumer Financial Protection Bureau is calling on the biggest credit reporting agencies to submit reports regularly on how they handle consumer disputes, and produce lists that name the furnishers and industries which have the most complaints.

Senate lawmakers pressed government officials about whether they’re doing enough to protect the financial system from cyberattacks on Wednesday, warning that more must be done next year to help banks defend themselves.

The spending package unveiled Tuesday would end Department of Veterans Affairs guarantees on larger loans starting Jan. 1.

The House approved an extension of the Terrorism Risk Insurance Act on Wednesday by a wide margin, but the financial industry is also poised to win several other possible legislative battles this week.

The battle over the nomination of Antonio Weiss, a relatively unknown investment banker, is less about him and more about the legacy and continuing influence of former Treasury Secretary Robert Rubin.

Morgan Stanley agreed to pay $4 million to settle U.S. regulatory claims that it lacked adequate risk controls, allowing a rogue employee at a client firm to engage in fraudulent trading.

The Rural Housing Service, an agency within the Department of Agriculture, is working to speed up loan processing and make other changes to boost lending in rural communities.

New York banking regulator Benjamin Lawsky provided details Wednesday about his plan to require the state's financial institutions to strengthen their cyberdefense systems.

TD Bank has settled with the state of Massachusetts after a data breach exposed the personal information of as many as 260,000 customers.