Law and regulation

The Senate Banking Committee testimony Thursday from Ed DeMarco, acting director of the Federal Housing Finance Agency, who said that the agency's ongoing efforts will be incomplete until Congress lays out a plan to bring the private sector back to the market.

California lawmakers have defeated a proposal aimed at reducing the size of the state's payday lending industry. A state Senate committee rejected the measure by a 5-3 vote Wednesday even after its author agreed to changes designed to soften the bill's impact.

Financial advisors are using too many different senior certifications to lure older consumers into business, according to a report by the Consumer Financial Protection Bureau.

Federal Reserve Board Gov. Jeremy Stein said regulators should not abandon the current reform agenda designed to eliminate "too big to fail."

Steve Antonakes, the Consumer Financial Protection Bureau's Acting No.2, reassured executives at the American Bankers Association's government relations summit over the impending mortgage rules and the examinations that will follow.

As expected, the U.S. House of Representatives on Thursday passed a controversial bill that aims to bolster the nation's defenses against cyber threats.

Ontario, Canada Consumer Minister Tracy MacCharles wants to crack down on debt settlement firms through a bill that would ban them from charging upfront fees and give consumers a 10-day period to cancel contracts.

The narrative favored by politicians, regulators and bureaucrats is that private banks caused the financial crisis of 2008. The Federal Reserve Chairman and Treasury Secretary stopped the market panic and a repeat of the Great Depression, then politicians and regulators implemented a plan that will maintain a sound financial system. The economic ship of state is stable, under full steam and accelerating.

The settlement, which follows an earlier deal with market leader Assurant, will prevent the insurers from giving banks commissions, free services, and reinsurance deals in order to win their business.

Federal Reserve Board Gov. Daniel Tarullo said Thursday that his top concern continues to be access by the largest financial firms to wholesale funding markets that can tip off runs and liquidity freezes.

Their only concern is that regulatory burdens remain high enough to prohibit competition, but low enough to protect revenues and profits.

In Russia, there's a large potential for U.S. payments providers willing to brave country's complex tech infrastructure and a national ID and payment card initiative that's still a work in progress.

Steve Antonakes, the No.2 at the Consumer Financial Protection Bureau, spent an hour with bankers on Wednesday attempting to ease concerns about impending mortgage rules and the examinations that will follow.

American Banker and Federal Financial Analytics are holding a joint forum with Sens. Vitter and Brown to discuss their bill to rein in the big banks and whether some institutions are "too big to fail."

U.S. Bancorp (USB) is about to add a service for Somali immigrants in the U.S.

WASHINGTON — Rep. Keith Ellison, D-Minn., introduced a bill Wednesday that would establish a tax on the trading of stocks and other financial products.

Democratic lawmakers raised numerous concerns Wednesday over the mortgage servicer settlement announced in January, including how banks are credited for relief they provide to borrowers.

Scott Alvarez, the Federal Reserve Board's general counsel, told lawmakers that the Fed is unlikely to issue clear standards on when it would use Dodd-Frank to take apart big banks that pose a "grave threat" to the economy, each situation would have its own circumstances.

Roughly 91% of the mortgages Bank of America funded in the first quarter were refinances — spelling peril if the refi boom peters out, as is expected.

Demand for credit by consumers and businesses continued to show signs of gradual improvement as homeowners looked to refinance their homes and buy new cars, according to a survey released by the Federal Reserve Board on Wednesday.