Law and regulation

The Justice Department has entered talks with federal agencies and banking regulators to clear the way for marijuana dispensaries to obtain banking services, a top U.S. official said.

Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, said Tuesday that she is preparing to unveil an alternative housing finance reform proposal to rival more conservative legislation backed by many House Republicans.

The Federal Deposit Insurance Corp. resisted big-bank pressure to overhaul a rule, issued Tuesday, that clarified that U.S. bank deposits held in a foreign branch do not receive FDIC insurance, even if they can be withdrawn in the U.S.

The 12 Federal Reserve district banks warned of mounting threats to the U.S. payment system such as fraud, and called for streamlining transactions from the point of payment to the point of receipt.

Fannie Mae and Freddie Mac should be increasing the availability of loans to the most underserved segment of the market: the small rental properties across the country that are naturally affordable.

Remittances from the West are a lifeline for many people in the developing world, but anti-money laundering compliance requirements have made it hard for banks and money transmitters to service this market. Ellen Zimiles of Navigant Consulting discusses the delicate balance between regulatory and law enforcement concerns, on the one hand, and business and humanitarian goals on the other.

The most notable quotes from American Banker stories of the previous week. Readers are encouraged to add their own observations in the Comments fields at the bottom of each slide.

Electronic payment companies design, build and operate costly networks that provide secure payment transactions to merchants. Such providers incur significant costs for the services they provide and deserve to charge a market-based rate to their customers.

The House Majority Leader's failure to include mortgage finance reform in his legislative agenda for the fall has sparked more questions about whether Rep. Jeb Hensarling, Patrick McHenry and others can advance his legislation to the floor this year.

The Federal Home Loan Bank system, which has been hurt by successive quarters of low demand for advances, saw its strongest advances growth in nearly six years in the second quarter as banks began to see depositors exit.

The Federal Home Loan Bank of Chicago announced Monday it plans to issue mortgage-backed securities guaranteed by the Government National Mortgage Association, or Ginnie Mae.

JPMorgan Chase said it would stop accepting commissions from Assurant under a settlement reached Friday. The two firms have also agreed to pay up to $300 million to resolve allegations that they overbilled homeowners.

Buttercoin wanted to be a Bitcoin exchange, but after being discouraged or outright rejected by over 76 financial institutions, it chose a different path.

California’s legislature has voted to reform a money-transmission law that has come under fire for stymying payments innovation.

The Federal Deposit Insurance Corp. is selling $2.42 billion of bonds issued by Citigroup in a transaction that will eliminate U.S. government holdings in the bank linked to the 2008 financial crisis.

Reform of housing finance giants Fannie Mae and Freddie Mac gained surprising momentum in recent months. But it's at risk of grinding to a halt as the Capitol Hill is consumed with Syria and the confirmation of a new Federal Reserve chairman. American Banker editors discuss the prospects for GSE legislation amid a packed and contentious legislative agenda.

PNC Financial Services Group has begun winding down Market Street Funding, an asset-backed commercial paper conduit that funds credit for corporate clients.

The idea of bringing criminal charges against one of the nation’s larger banks has become untenable. The potential cost in jobs, probable shareholder losses and market turmoil would be horrific.

Congress must create mechanisms to dampen the volatility of housing finance, writes James Lockhart, the former regulator for Fannie and Freddie, on the fifth anniversary of their takeover by the government.

Neil Barofsky, who became known as a staunch advocate for transparency and accountability as the watchdog of the Troubled Asset Relief Program, is joining the law firm Jenner & Block as a partner.