Financial Regulatory Forum

U.S. consumer bureau’s mortgage servicing rules are in the right direction despite shortcomings

By Bora Yagiz

NEW YORK, Aug. 31 (Thomson Reuters Accelus) - The Consumer Finance Protection Bureau’s proposed rules earlier this month on mortgage servicing are a step in the right direction in its efforts to uproot the malpractices that were once prevalent in the subprime mortgage market. The proposals suffer from a few shortcomings, however, not the least because the Bureau, with its “one-size-fits-all” approach, seems to have ignored the nuances between the different players within the servicing industry. (more…)

U.S. Fed chief sees growth prospects, “urgent” regulatory reform need

Chairman of the Federal Reserve Ben Bernanke testifies before the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill in Washington July 22, 2009. (FILE) WASHINGTON, Aug 21 (Reuters) – Following are highlights from U.S. Federal Reserve Chairman Ben Bernanke’s prepared speech to be delivered at the Kansas City Federal Reserve Bank’s conference in Jackson Hole, Wyoming.

BERNANKE ON CURRENT STATE OF ECONOMY
“After contracting sharply over the past year, economic activity appears to be leveling out, both in the United States and abroad, and the prospects for a return to growth in the near term appear good. … The economic recovery is likely to be relatively slow at first, with unemployment declining only gradually from high levels.”
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U.S. FDIC launches test of toxic asset sale program

WASHINGTON, July 31 (Reuters) – The U.S. Federal Deposit Insurance Corp is launching the first test of its Legacy Loans Program to help banks rid their balance sheets of toxic assets so they can raise new capital and increase lending, the agency said on Friday.
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CIT survival ensnared in regulatory battle

By Elinor Comlay and Karey Wutkowski
NEW YORK/WASHINGTON, July 13 (Reuters) – The survival of CIT Group Inc <CIT.N>, a key source of financing for thousands of small and medium-sized companies, became ensnared in disagreements between regulators in Washington on Monday. (more…)

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