News Topic: regulation-reform

Three things are driving the growth of large banks: market demand, access to capital and regulatory burden created by existing and forthcoming legislation. ... Read full article

Regulators are not in the bank on a day-to-day basis; usually they can only judge actions after the fact and without all of the relevant information and considerations. ... Read full article

Political and public outcry against "too big fail" has certainly grown in the last few months. Do large financial institutions need to fear a breakup? ... Read full article

Megabanks may be able to fight off regulatory forces demanding their corporate downsizing, but a voluntary break up may be the only way to sway public opinion their way. ... Read full article

Risk management issues, fair lending infractions, money laundering violations and civil money penalties will remain on regulators' radars in 2013. ... Read full article

Reform efforts could result in a much smaller scope of permissible lending at the FHA, with a renewed focus on its traditional core of low-income customers, higher credit score requirements and increased down payments. ... Read full article

Proponents of breaking up big banks trumpet Attorney General Eric Holder's complaint that some are too large to prosecute. But indicting companies for individual employees' actions would indeed be reckless. ... Read full article

The nonexistence of "too big to fail" is swell news. Now taxpayers can stop worrying about future bailouts, the Federal Reserve can ease monetary policy and the Justice Department can prosecute the banks purportedly "too big to jail." ... Read full article

Banks have convinced policymakers, regulators and sometimes the courts that new regulations might be too expensive. However, the point of public intervention is to induce banks to take account of costs they impose on others. ... Read full article

Produce a video for members of Congress to watch that focuses on a typical banking transaction and shows the various laws, regulations and other issuances that come into play at every stage of the process. ... Read full article

Breaking up the nation's megabanks will not herald a new Golden Age where market discipline reigns supreme. ... Read full article

The best way to meet the needs of consumers and communities is to once again have the private sector play the lead role in the housing market, led by responsible local lenders. ... Read full article

Bankers must concentrate on achieving greater efficiencies, stop focusing on short-term goals and strike the right balance between unacceptably poor compliance practices and unattainable perfection. ... Read full article

Making home loans that aren't "qualified mortgages" will soon carry legal risk. Will making only QM loans expose lenders to fair-lending claims under the disparate impact doctrine? Washington must clarify. ... Read full article

If U.S. know-your-customer rules required banks to identify and scrutinize foreign recipients in addition to the senders of money, other countries would likely return the favor. ... Read full article

Fannie Mae and Freddie Mac have now become the gatekeepers for underwriting qualified mortgages. This guidance might be a safe harbor from litigation, but history indicates it may fail as a safe harbor from risky lending. ... Read full article

A century and a half ago, the National Bank Act was born with a mission to promote a strong, vibrant national banking system. What it created was a dual banking system that has been meeting the changing needs of bank customers ever since. ... Read full article

When a single official has very great power over a small number of firms such as the megabanks, the result too often is regulatory capture. ... Read full article