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Jan 31, 2013

US lawmakers seek mortgage settlement documents from regulators

WASHINGTON, Jan 31 (Reuters) – U.S. lawmakers on Thursday
asked bank regulators to turn over documents related to the $8.5
billion settlement that ended a government-mandated review of
crisis-era foreclosures, saying transparency was needed to boost
confidence in the settlement.

Senator Elizabeth Warren and Representative Elijah Cummings,
both Democrats, said the Federal Reserve and the Office of the
Comptroller of the Currency (OCC) must address concerns that
financial institutions have not been held accountable for
misdeeds during the 2007-2009 U.S. financial crisis.

Jan 17, 2013

Consumer bureau issues rules to clean up mortgage servicing

WASHINGTON (Reuters) – The U.S. Consumer Financial Protection Bureau announced new rules for mortgage servicers on Thursday to help prevent the sloppy practices that aggravated the U.S. foreclosure crisis.

Mortgage servicers collect monthly payments from borrowers on behalf of the investors that own the loans. That often involves letting borrowers know about the status of loans, modifying the loans for those struggling to make payments on time, and handling foreclosures.

Jan 10, 2013

US consumer watchdog tightens mortgage rules on banks

WASHINGTON, Jan 10 (Reuters) – The U.S. government’s
consumer finance watchdog said on Thursday it will force banks
to use new criteria to determine whether a borrower can repay a
home loan, in an effort to avert the kind of loose lending that
helped push the economy into recession.

Banks will have to verify a potential borrower’s income, the
amount of debt they have, and their employment.

Jan 10, 2013

Consumer watchdog tightens mortgage lending rules on banks

WASHINGTON (Reuters) – More than five years after the housing market collapsed, the U.S. government’s newly created consumer watchdog said Thursday it will force banks to verify a borrower’s ability to repay loans to ward off the kind of loose lending that helped push the U.S. economy into recession.

The Consumer Financial Protection Bureau said its new guidelines would also protect borrowers from irresponsible mortgage lending by providing some legal shields for lenders who issue safer, lower-priced loan products.

Jan 10, 2013

U.S. consumer watchdog tightens mortgage lending rules on banks

WASHINGTON, Jan 10 (Reuters) – More than five years after
the housing market collapsed, the U.S. government’s newly
created consumer watchdog said Thursday it will force banks to
verify a borrower’s ability to repay loans to ward off the kind
of loose lending that helped push the U.S. economy into
recession.

The Consumer Financial Protection Bureau said its new
guidelines would also protect borrowers from irresponsible
mortgage lending by providing some legal shields for lenders who
issue safer, lower-priced loan products.

Jan 8, 2013

AIG may join bailout lawsuit against U.S. government

NEW YORK/WASHINGTON (Reuters) – American International Group Inc, the insurer rescued by the U.S. government in 2008 with a bailout that ultimately totaled $182 billion, may now join a lawsuit against the government alleging the terms of the deal were unfair, the company said on Tuesday.

Negative reaction was swift. A leading congressional Democrat called criticism of the deal’s terms “utterly ridiculous,” and former New York Attorney General Eliot Spitzer – who probed AIG when he was in office – called the prospect of a suit “insulting to the public.”

Jan 7, 2013

Banks have to pay up, despite win on liquidity rule

LONDON/WASHINGTON (Reuters) – Banks have won a victory in their battle to dilute tough rules on liquidity, but they will still have to find trillions of dollars to ensure their funds do not run out in a crisis.

Heavy lobbying by banks over the past two years has bought them time, but not freedom from requirements that they lock up big new cash buffers globally from 2015.

Jan 4, 2013

JPMorgan ordered to comply with U.S. probe of Madoff

By Emily Stephenson and Sarah N. Lynch

(Reuters) – The Treasury Department watchdog ordered JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) to work with U.S. regulators seeking documents in connection with a probe into the bank’s relationship with convicted Ponzi schemer Bernard Madoff, in a warning letter dated December 21.

The letter from Treasury Inspector General Eric Thorson to JPMorgan’s general counsel, Stephen Cutler, which was reviewed by Reuters on Friday, revealed that the Office of the Comptroller of the Currency has been unable to get documents it requested.

Jan 3, 2013

US regulators give banks time to spin off swap trading

WASHINGTON, Jan 3 (Reuters) – Banks could have up to three
extra years to comply with a new U.S. rule requiring firms that
receive federal deposit insurance to spin off some of their
swaps trading into separate arms, U.S. regulators said on
Thursday.

The Office of the Comptroller of the Currency said it would
“consider favorably” requests for transition periods before
banks must comply with the so-called “swaps push-out” rule.

Jan 3, 2013

US regulators give banks time to spin off swap trading

WASHINGTON, Jan 3 (Reuters) – Banks could have up to three
extra years to comply with a new U.S. rule requiring firms that
receive federal deposit insurance to spin off some of their
swaps trading into separate arms, U.S. regulators said on
Thursday.

The Office of the Comptroller of the Currency said it would
“consider favorably” requests for transition periods before
banks must comply with the so-called “swaps push-out” rule.