WASHINGTON (Reuters) – The U.S. consumer watchdog and several state attorneys general on Monday sued a California-based servicer of online loans, accusing the company of wrongly collecting on loans that were made in violation of state laws.
CashCall Inc. serviced online loans that broke consumer protection laws in at least eight states and collected money that borrowers should not have had to repay, the U.S. Consumer Financial Protection Bureau said.
WASHINGTON (Reuters) – The U.S. Treasury Department’s insurance office called for a bigger federal government role in insurance regulation, including new standards for mortgage insurers, and said state officials should improve oversight of the entire industry.
The Federal Insurance Office’s report to Congress on Thursday on ways to revamp U.S. insurance regulation was required by the Dodd-Frank Act of 2010 after taxpayers bailed out massive insurer American International Group during the financial crisis.
WASHINGTON (Reuters) – U.S. banks will no longer be able to make big trading bets with their own money after regulators finalized on Tuesday a rule shutting down what was a hugely profitable business for Wall Street before the credit crisis.
The measure known as the Volcker rule was a late addition to the 2010 Dodd-Frank Wall Street reform law and seeks to ensure that banks can’t make speculative trades that are so large and risky that they threaten individual firms or the wider financial system.
WASHINGTON (Reuters) – U.S. regulators toughened key sections of the Volcker rule’s crackdown on Wall Street’s risky trades on Tuesday as they finalized one of the harshest reforms after the credit meltdown.
The rule – named after former Federal Reserve Chairman Paul Volcker, who championed the reform – generally bans banks from proprietary trading, or speculative trading for their own profits.
WASHINGTON (Reuters) – Wall Street banks will need to prove to regulators their trades are done on behalf of clients or to protect against market risks and are not speculative bets for their own profit, under the final version of the Volcker rule released by U.S. officials on Tuesday.
The rule – which five regulatory agencies are expected to adopt later in the day – appears to more sharply crack down on so-called proprietary trading than when it was proposed two years ago, likely disappointing banks hoping for more leeway.
WASHINGTON (Reuters) – Three Wall Street trade groups sued the U.S. Commodity Futures Trading Commission on Wednesday to rescind tough overseas trading guidelines they fear could hurt markets and cut profits.
The groups accused the CFTC in their lawsuit of circumventing a more rigorous rulemaking process by issuing its cross-border regulations as “guidance.”
WASHINGTON (Reuters) – U.S. banks are likely to cut back on risky short-term funding if markets believe bankruptcy not bailouts await them, a top Federal Reserve is set to tell lawmakers on Tuesday.
Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, is expected to tell Congress that the biggest U.S. banks have relied on raising short-term cash because they have expected the government to step in if their strategies failed.
WASHINGTON (Reuters) – The Federal Reserve on Monday said it approved new capital plans by Goldman Sachs and JPMorgan Chase, after initially ordering the banks to fix flaws in their capital planning processes.
The plans are part of the stress-testing regime meant to determine how the biggest U.S. banks would fare in a financial meltdown.
WASHINGTON/NEW YORK (Reuters) – Auto lender Ally Financial Inc (ALLY_pb.N: Quote, Profile, Research, Stock Buzz) moved a step closer to paying back the U.S. government on Friday after the Federal Reserve approved the company’s 2013 capital plan.
With the Fed’s approval, Ally can proceed with a private share sale it had announced in August.
WASHINGTON (Reuters) – Big banks can still borrow more cheaply than competitors and should face tougher rules, the prospective new head of the U.S. Federal Reserve told lawmakers on Thursday.
Large banks may have an edge because markets think they have government backing in times of crisis, said Janet Yellen, President Barack Obama’s choice to be the Fed’s new head, unveiling some new steps the central bank could take to encourage those firms to downsize.