WASHINGTON (Reuters) – Banks need to urgently change a provision in derivatives contracts that prevents them from smoothly winding down their business if they start failing during a crisis, a top U.S. regulator told Reuters on Wednesday.
Thomas Hoenig, second in command at the Federal Deposit Insurance Corp, said the so-called early termination rights were the most pressing problem regulators found last week with documents that show how banks can go through bankruptcy court during a crisis that threatens their solvency.
WASHINGTON, Aug 12 (Reuters) – The new U.S. financial
consumer agency will improve managers’ training and in-house
communications, its director said on Tuesday after an internal
report found employees were concerned about inexperienced
supervisors and confused about pay practices.
Richard Cordray, head of the Consumer Financial Protection
Bureau (CFPB), said in an email to staff that he requested the
probe after allegations surfaced of unfair performance rating
practices and possible discrimination at the bureau.
Aug 8 (Reuters) – A move by personal credit score provider
FICO to leave out or discount medical debt from its
scores will boost the credit record of many borrowers, while
helping lenders to better assess risk.
The company, formerly known as Fair Isaac Corp, said on
Thursday that overdue medical payments that have already been
settled will be ignored while calculating credit risk.
WASHINGTON (Reuters) – U.S. regulators on Tuesday told banks to come up with better living wills, inching a step closer to taking action if these plans to avoid taxpayer bailouts during a future crisis were still deficient next year.
The plans submitted by the banks last year showed important shortcomings, the Federal Reserve and Federal Deposit Insurance Corp. said, telling them to show in 2015 that they had made “significant progress” to address a range of issues.
WASHINGTON, July 31 (Reuters) – The biggest U.S. banks’
borrowing cost advantage over smaller competitors appears to
have been reduced or eliminated since the 2007-2009 financial
meltdown but could return in a crisis, a U.S. government
official said on Thursday.
Lawrance Evans, director of financial markets at the U.S.
Government Accountability Office, said a new report also found
that industry participants believe the 2010 Dodd-Frank Wall
Street oversight law reduced the likelihood the federal
government would bail out big banks in a future crisis.
WASHINGTON (Reuters) – A U.S. Senate panel will meet next Thursday to discuss results of a much anticipated government study that looked at whether the biggest banks can borrow at lower interest rates because investors think they would be bailed out in a crisis.
Senator Sherrod Brown of Ohio, a Democrat, and Senator David Vitter of Louisiana, a Republican, who serve on the Senate Banking Committee, asked the Government Accountability Office more than a year ago to determine whether banks that are deemed “too big to fail” are able to borrow more cheaply than smaller banks can. Bank critics say that cheaper borrowing represents a market subsidy for the biggest institutions.
WASHINGTON (Reuters) – The U.S. Senate voted overwhelmingly on Thursday to reauthorize a federal terrorism risk insurance program that was created after the Sept. 11, 2001, attacks.
Senators voted 93-4 in favor of a bill that gives the federal insurance backstop seven more years. Businesses, owners of sports stadiums and other groups that insure against the risk of terrorist acts have urged lawmakers to renew the program before it expires at the end of the year.
WASHINGTON (Reuters) – The Republican-led U.S. House of Representatives on Wednesday passed a bill to slash funding for Wall Street oversight and revamp new agencies dedicated to cracking down on fraud against consumers and policing risks after the financial crisis.
The $21.3 billion funding bill, which covers appropriations for the 2015 fiscal year beginning Oct 1 for financial services and other areas of government, passed the House in a 228 to 195 vote along largely partisan lines.
WASHINGTON (Reuters) – An attempt by U.S. Senate Democrats to override the Supreme Court’s controversial birth control ruling failed to muster enough votes to move forward on Wednesday, but lawmakers vowed to keep pressing the issue heading into the midterm elections.
Senators, including three Republicans, voted 56-43 for the bill, which would bar employers from discriminating against female employees in coverage of preventive health services, including contraception.
WASHINGTON (Reuters) – Two U.S. senators on Wednesday unveiled a bill prompted by the General Motors Co recalls over defective ignition switches that would make it a crime for corporate officers to conceal dangers posed by their products.
Democratic senators Richard Blumenthal of Connecticut and Bob Casey of Pennsylvania said their proposal calls for up to five years in prison and fines for officers who know their products could cause death or injury to consumers or workers and hide that information.