CAP Credits FHA for Its Useful Ignorance, Allowing Mortgage Fraud to Continue

By: Saturday October 13, 2012 10:04 am

I don’t really know what to make of this analysis from the Center for American Progress, alleging that the Federal Housing Administration “saved” the housing market during the downturn. First, a word on what the FHA does. They’re basically a government-run mortgage insurer, backstopping loan losses for private lenders for a nominal fee that borrowers [...]

Fed Governor Daniel Tarullo: Break Up the Banks

By: Thursday October 11, 2012 8:30 am

In an announcement that would have really helped two years ago, Federal Reserve Governor Daniel Tarullo called for a size cap on the largest financial firms. Tarullo is the point person at the Fed for bank policy, including consumer protection and regulatory measures. So he’d be in the best position in that organization to know [...]

JPMorgan Chase Trying to Throw Its Traders Under the Bus for Fail Whale-Related Securities Fraud

By: Thursday October 11, 2012 7:04 am

JPMorgan Chase CEO Jamie Dimon, a longtime Democrat for those who don’t know, endorsed a higher top marginal tax rate and an increase in the capital gains rate in a speech at the Council on Foreign Relations yesterday. He also blamed the sluggish recovery on over-regulation and uncertainty and endorsed Bowles-Simpson as an economic salve. [...]

Stage-Managed Stress Tests Now a Key Factor in Financial Regulatory System

By: Wednesday October 10, 2012 1:55 pm

I guess I’m supposed to be impressed by this new expansion of stress tests by the financial regulatory apparatus. The biggest U.S. banks will have to run two internal “stress tests” each year and publish some of the results on their websites under new rules that enshrine the examinations as a central plank of postcrisis [...]

Study: Time to Stop Banks from Risky Trading

By: Wednesday October 10, 2012 12:59 pm

Via Mark Gongloff, the IMF has released a new study showing that, in essence, the world would be a much safer place if international banks stopped trading in the financial markets. Why can’t banks just trade like George Soros and everybody else? Why can’t they have any fun? A few reasons: First, banks have tons [...]

British Regulators Announce Overhaul of Libor

By: Friday September 28, 2012 10:03 am

The Financial Services Authority, the top regulator of the banking industry in Britain, announced its changes to how the Libor, the benchmark interest rate which undergirds hundreds of trillions of dollars in financial products, will be derived. As expected, the British government will take responsibility for setting the Libor away from the British Bankers’ Association. [...]

CFPB Again Gets Full Refund for Customers Abused By Their Credit Card Issuer UPDATED

By: Monday September 24, 2012 1:09 pm

The Consumer Financial Protection Bureau has struck again with an enforcement action against credit card abuse. Previously, CFPB got a full refund for Capital One customers deceived into paying for add-on services on their credit card. Building on that work, CFPB joined with the FDIC to file a similar enforcement action with Discover, another major [...]

On Fourth Anniversary of Lehman Collapse, No Fundamental Change on Wall Street

By: Monday September 17, 2012 12:19 pm

Four years later, we have not seen a systematic dismantling of the conditions that created the crisis. We’ve seen trillions in emergency support thrown at the banks that survived the crash, all of whom have grown bigger and more indispensible, even more “Too Big to Fail” than before. We’ve seen cosmetic regulatory changes, many unrelated to the crash at all, which have not yet been tested and in many not yet implemented. And the core problems of a massive financial sector have not been resolved.

CFPB Getting Reputation as a Fearsome Regulator

By: Thursday September 13, 2012 1:41 pm

You might have guessed that I don’t have a ton of respect for our nation’s regulatory apparatus, particularly in the finance space. Too often, regulators listen to their Wall Street friends over the nuances of the law, are slow to identify abuses and slower still to crack down on them, and when they finally get [...]

Senators Seeking to Delay, Water Down Wall Street Rules

By: Monday September 10, 2012 11:02 am

There has been a multi-stage reaction from Wall Street to the prospect of financial regulation, ever since the crash necessitated the need for the political class to act like they were doing something to rein in the financial sector. First the banks tried to water down the legislation which eventually became Dodd-Frank. Then they used [...]

Banks Want Another Account to Disguise Their Risky Trades

By: Wednesday August 29, 2012 12:58 pm

Whither the Volcker rule? After a flurry of discussion about it in the wake of JPMorgan Chase’s Fail Whale trades, we’ve heard significantly less of late. In fact, regulators blew through a July deadline on finalizing the Volcker rule. The last word we had was that the deadline was pushed back to the end of [...]

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