(Reuters) – Borrowers who took out private student loans in the run-up to the financial crisis are facing higher levels of default, reflecting the risky lending practices at the time, the Obama administration said in a new report.
The Department of Education and the Consumer Financial Protection Bureau said private lenders have since cleaned up some of the worst activities, but lawmakers should still work to improve the private loan market and enhance protections for students.
(Reuters) – The unfolding scandal involving global banks’ attempts to manipulate benchmark interest rates undermines the financial system by chipping away at public trust, Goldman Sachs Chief Executive Lloyd Blankfein said on Wednesday.
Blankfein said financial scandals like the one surrounding the London Interbank Offered Rate, or Libor, create uncertainty that only builds on the American public’s mistrust of the industry after the 2007-2009 financial crisis.
July 16 (Reuters) – The U.S. consumer watchdog agency said
o n M onday it will start closely supervising credit reporting
companies in September, bringing the industry under strict
federal supervision for the first time.
The Consumer Financial Protection Bureau, in adopting a rule
to oversee the companies, said the industry has a tremendous
influence over Americans’ financial well-being.
WASHINGTON, July 12 (Reuters) – A group of Democratic U.S.
senators pressured Attorney General Eric Holder and financial
regulators on Thursday to step up investigations into whether
global banks manipulated benchmark interest rates.
The senators, including Carl Levin, Jack Reed and Dianne
Feinstein, said investigators should also look into allegations
that U.S. and foreign bank regulators may have been aware for
years of wrongdoing in the setting of the London Interbank
Offered Rate, or LIBOR.
(Reuters) – A senator from Iowa wants the Senate Agriculture Committee to look into the scandal surrounding now-bankrupt futures broker PFGBest during a hearing scheduled for next month.
The committee already plans to meet on August 1 to discuss the fallout from the failure last fall of a larger futures broker, MF Global.
WASHINGTON (Reuters) – A fresh burst of scandals, including allegations that major banks tried to manipulate global benchmark interest rates and another case of missing customer funds at a futures brokerage, has raised Washington’s ire on both sides of the political aisle.
One leading Republican in Congress blasted regulators for failing to detect banks’ attempted manipulation of the London Interbank Offered Rate, or Libor, and House Republicans have requested documents to determine when U.S. regulators knew of problems with the index.
WASHINGTON, June 29 (Reuters) – The U.S. Postal Service’s
regulator has rejected an attempt by a postal workers’ union to
block changes to mail delivery set to take effect next week, the
Postal Regulatory Commission said on Friday.
The mail agency said in May it would begin this summer
consolidating operations at mail processing plants, with about
140 facilities to be closed or consolidated by February 2013.
(Reuters) – Banks will retain attorney-client privilege and other legal protections over sensitive information submitted to the Consumer Financial Protection Bureau under a rule the U.S. consumer watchdog adopted on Thursday.
The rule would protect certain legal memos, internal audits and other documents submitted to the agency from subpoena by outside groups. Bank executives had protested that confidential materials handed to the agency could be obtained by independent consumer advocates or groups trying to sue the firms.
WASHINGTON (Reuters) – In a bitterly divided U.S. political environment, there’s at least one thing Republicans and Democrats can agree on: Avoid a public showdown on natural gas exports, arguably the most important energy policy decision in recent memory.
While fluctuating gasoline prices, the Keystone pipeline and the fight over fracking steal headlines, the question of how much of the newfound U.S. shale gas bounty should be shared with the rest of the world goes largely without comment or coverage — despite holding far wider and longer-lasting consequences.
June 25 (Reuters) – The fallout from the General Services
Administration’s headline-grabbing Las Vegas convention scandal
is rippling through the travel and conference industries, who
say their nascent recovery is being jeopardized by increasing
scrutiny on government travel spending.
Those industries predict that a recent Obama administration
directive to federal agencies to slash travel budgets, and
congressional proposals to further cap agency spending and
travel, could hurt hotels, conference centers, rental car
agencies and other private companies.