law-regulation

Merchants argue that Fed policy allows banks to overcharge stores for debit-card swipe fees, resulting in higher prices for consumers. But the revenue banks earn on interchange fees benefits all Americans, since financial institutions invest a portion of it in developing security technologies to protect consumer data.

Any banker considering filing an appeal against examination findings will first weigh the drawbacks of irking regulators. This explains the surprisingly small number of appeals that regulators have received in the last few years.

Critics say the SEC uses too liberal a hand in granting waivers that allow firms that violate securities laws to be exempted from certain penalties. But the agency needs these waivers to adjust rules designed to be overly broad.

A two-tiered system of regulation could encourage small banks to maintain their relationship-based business model and prevent big banks from using insured deposits to conduct risky activities.

Not only do the FDIC's limitations on brokered deposits curtail bank earnings, they deny banks the ability to use brokered deposits to meet community lending needs.