Reporter, Washington, D.C.
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Jun 27, 2012

Big banks craft ‘living wills’ in case they fail

NEW YORK/WASHINGTON, June 27 (Reuters) – Five of the biggest
banks in the United States are putting finishing touches on
plans for going out of business as part of government-mandated
contingency planning that could push them to untangle their
complex operations.

The plans, known as living wills, are due to regulators no
later than July 1 under provisions of the Dodd-Frank financial
reform law designed to end too-big-to-fail bailouts by the
government. The living wills cou ld be as long as 4,000 pages.

Jun 21, 2012

US regulators extend foreclosure review deadline

WASHINGTON, June 21 (Reuters) – Homeowners who were
wrongfully foreclosed upon in 2009 or 2010 could receive more
than $125,000 each from large U.S. banks under plans released on
Thu rsday by banking regulators.

The new guidelines from the Federal Reserve and the Office
of the Comptroller of the Currency are intended to provide more
clarity about what constitutes an error during a foreclosure and
how much a mortgage servicer should pay for harming a homeowner.

Jun 20, 2012

Schapiro takes money market reform case to U.S. Congress

WASHINGTON (Reuters) – Securities and Exchange Commission Chairman Mary Schapiro will brief Congress on Thursday on her case for tightening the regulation of money market funds, arguing they remain a threat to the economy.

In testimony prepared for a Senate Banking Committee hearing, Schapiro argues that reforms put in place in 2010 after a run on some funds in 2008 were not sufficient.

Jun 20, 2012

U.S. regulator releases new lending limit rule

WASHINGTON (Reuters) – The limit on the amount of lending exposure U.S. banks can have to any one counterparty will now include some derivative transactions, under a rule released on Wednesday by the Office of the Comptroller of the Currency.

The 2010 Dodd-Frank financial oversight law required the change as part of a broader effort to better regulate the roughly $700 trillion over-the-counter derivatives market following the 2007-2009 financial crisis.

Jun 19, 2012

U.S. watchdog puts credit card complaints online

WASHINGTON, June 19 (Reuters) – The new U.S. consumer
watchdog agency is launching a website on Tuesday where the
public will be able to view complaints made by credit card
customers against specific banks and other lenders.

The Consumer Financial Protection Bureau said it is
releasing the data to make the market for credit cards more
transparent and so the public, researchers and the lending
industry will have access to much of the data it receives from
consumers.

Jun 18, 2012

U.S. SEC chief offers regulatory guide to JPMorgan

WASHINGTON (Reuters) – U.S. Securities and Exchange Commission Chairman Mary Schapiro will sketch a regulatory roadmap to JPMorgan Chase & Co’s recent huge trading loss, but will stop short of discussing the specifics of her agency’s investigation with lawmakers on Tuesday.

In testimony prepared for the House Financial Services Committee hearing, Schapiro lists relevant regulatory authorities ranging from rules against misleading investors to regulations that require public companies to clearly lay out their risks.

Jun 14, 2012

Dimon says losses indefensible, still reform skeptic

WASHINGTON (Reuters) – JPMorgan Chase & Co Chief Executive Jamie Dimon used his much anticipated appearance before lawmakers to apologize for the bank’s multibillion-dollar trading loss but he also made clear he will still criticize how Washington tries to curb Wall Street.

The Senate Banking Committee scheduled the hearing to grill Dimon on how a hedging strategy in a seemingly low-risk London office morphed into a complex bet that has produced at least $2 billion in losses.

Jun 13, 2012

JPMorgan’s Dimon greeted by protesters in Washington

WASHINGTON (Reuters) – JPMorgan Chase & Co Chief Executive Jamie Dimon defended the intent of the portfolio behind the bank’s recent multibillion-dollar trading loss, telling lawmakers it was a genuine hedge that would make the firm a lot of money if a credit crisis hit.

Dimon, appearing before the Senate Banking Committee on Wednesday, said well-intentioned traders poorly executed the hedge, and the bank’s senior management failed to police the London office behind the trades.

Jun 13, 2012

JPMorgan’s Dimon says good intent behind bad trades

WASHINGTON, June 13 (Reuters) – JPMorgan Chase & Co
Chief Executive Jamie Dimon defended the intent of the portfolio
behind the bank’s recent multibillion-dollar trading loss,
telling lawmakers it was a genuine hedge that would make the
firm a lot of money if a credit crisis hit.

Dimon, appearing before the Senate Banking Committee on
Wednesday, said well-intentioned traders poorly executed the
hedge, and the bank’s senior management failed to police the
London office behind the trades.

Jun 13, 2012

Dimon says JPMorgan failed to rein in traders

WASHINGTON, June 12 (Reuters) – JPMorgan Chief Executive
Jamie Dimon will tell lawmakers that the bank’s recent
multibillion-dollar trading loss occurred because poorly managed
traders embarked in January on a misguided hedging strategy they
did not fully understand.

His written testimony prepared for a hearing on Wednesday
gives a few more details about what went wrong, and what the
nation’s largest bank by assets plans to do about it.