Law and regulation

Lead Bank in Garden City, Mo., plans to expand the range of services it offers by becoming a state-chartered trust company.

Until recently, the card network generally prohibited its retail partners from offering special deals to customers that paid with a specific bank's credit or debit card. But Visa quietly lifted the ban on Feb. 1, paving the way for retailers to cut deals with card issuers, according to Visa group president of the Americas William Sheedy.

The payments network will now allow merchants to offer discounts to customers who use specific cards, as new CEO Charles Scharf rethinks how Visa does business.

Observers say it's unlikely Congress will be able to strike a deal to stop across-the-board budget cuts from going into effect next week, raising concerns for bankers and regulators alike.

The chip-and-PIN version of PayPal's Here mobile card reader is set to debut overseas this year, but the splash will be felt in the U.S. as well.

The Consumer Financial Protection Bureau has shown interest in the student loan marketplace, noting its potential to cause systemic problems, and the agency wants to assist struggling student borrowers.

The Financial Stability Oversight Council was created as part of the 2010 Dodd-Frank reform law to identify risks and respond to emerging threats to financial stability. The FSOC exercised its authority for the first time last November, when the council issued recommendations to the Securities and Exchange Commission regarding the regulation of money-market mutual funds.

The number of community banks under enforcement actions fell in January, as the Federal Deposit Insurance Corp. ended 16 orders and issued five on the month.

JPMorgan Chase (JPM) is raising another round of questions about a lawyer who works for the New York attorney general, which has sued the company over the mortgage conduct of Bear Stearns.

The Federal Reserve Board said Friday it will give stakeholders more time to comment on a proposal that would overhaul the way the U.S. central bank supervises foreign banks operating in the U.S.

The National Grocers Association said its board voted to opt out of a multibillion-dollar antitrust settlement with Visa Inc. and MasterCard Inc. over merchant fees.

The market should pay more attention to whether banks are adequately capitalized for unabated fraud, such as misrepresentations of securities or insider trading, settlement complications and other operational failures.

Forcing the networks to let merchants surcharge for card payments will remove the advantage of retailers that accept only cash or other alternatives such as Bitcoin.

First Sound Bank (FSWA) in Seattle has bought back its Troubled Asset Relief Program shares after raising nearly $8 million.

The CFPB's attempt to help struggling student borrowers is tackling the right problem — $1.1 trillion in outstanding loan debt — but can't affect 85% of that figure, which is in federal loans.

Consumer advocates remain frustrated with servicers for not offering more principal write-downs and loan modifications to help borrowers stay in their homes.

The Consumer Financial Protection Bureau is seeking public comment on the most beneficial ways for Congress and regulators to step in and aid distressed student loan borrowers.

The Consumer Financial Protection Bureau said Thursday it was requesting public comment on the best ways for Congress or regulators to help struggling student loan borrowers.

Total System Services Inc. will begin processing LINK ATM transactions throughout the United Kingdom this year.

At its annual party, the scandal-buffeted British bank bid goodbye to the "exciting and unpredictable" Year of the Dragon and welcomed in the Year of the Snake.