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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.

Jan 2, 2013

CEOs pan fiscal cliff deal, vow to continue debt fight

By Scott Malone and Emily Stephenson

(Reuters) – U.S. executives largely panned the congressional deal to steer America away from the “fiscal cliff,” saying Washington wasted an opportunity to address the nation’s long-term debt, but said they would continue to agitate for a better budget plan.

While CEOs expressed relief that $600 billion in tax hikes and spending cuts will not kick the fragile economy in the gut, their gratitude was salted with insults.

Dec 27, 2012

Trade groups appeal U.S. decision on CFTC mutual funds rule

By Emily Stephenson

(Reuters) – Two industry trade groups moved on Thursday to appeal a judge’s decision earlier this month upholding a new regulation for the mutual funds industry, in a ruling that came as a rare win for the U.S. Commodity Futures Trading Commission.

The Investment Company Institute and the U.S. Chamber of Commerce said the rule duplicates existing rules enforced by securities regulators. They said the CFTC did not sufficiently consider the impact on markets when it wrote its new rule.