Financial Regulatory Forum

Ex-Washington Mutual CEO cries foul; risky loans slammed

April 14, 2010

   By Dan Margolies
   WASHINGTON, April 13 (Reuters) – The former chief executive of Washington Mutual said banking regulators seized it unfairly in 2008 as the Seattle-based savings and loan fell outside an inner circle of banks that were “too clubby to fail.” (more…)

Exchanges to Washington: don’t flood us with swaps

April 14, 2010

   By Jonathan Spicer
   NEW YORK, April 13 (Reuters) – Big exchanges and clearinghouses are key planks in the U.S. government’s plan to revamp derivatives markets, but the fierce competitors warned in near-unison on Tuesday that lawmakers should not recklessly force more products through them than is appropriate. (more…)

US Senate panel: high-risk loans brought down WaMu

April 13, 2010

   By Dan Margolies
   WASHINGTON, April 12 (Reuters) –  Despite fraud rates of over 58 percent and 83 percent at two of Washington Mutual Bank’s top-producing loan production offices in 2005, the bank did nothing to address the problem, according to findings released Monday by a congressional panel. (more…)

US watchdogs may still get ‘Volcker rule’-consultant

April 13, 2010

    FRANKFURT, April 12 (Reuters) – U.S. banking supervisors could get indirect powers to ban proprietary trading by banks even if the “Volcker rule” is not in the financial reform bill, a banking consultant with close contact to decision-makers said. (more…)

US’s Wolin defends fight for financial overhaul

April 13, 2010

USA/   WASHINGTON, April 12 (Reuters) – The Obama administration will resist any efforts to weaken a “comprehensive and strong” change to the way the U.S. financial system is regulated that lawmakers are now debating, Deputy Treasury Secretary Neal Wolin said on Monday. (more…)

US bailout cost seen lower at $89 bln -WSJ

April 12, 2010

    NEW YORK, April 11 (Reuters) – The U.S. government’s bailout of the financial system is expected to cost $89 billion, much lower than earlier projections, the Wall Street Journal reported on Sunday, citing Treasury Department officials. (more…)

Bernanke defends Fed small bank supervision role

March 18, 2010

   By Mark Felsenthal
   WASHINGTON, March 17 (Reuters) – Top U.S. central bankers present and past on Wednesday joined forces against a plan to strip the Fed of its oversight of smaller banks, saying the knowledge it gains from that role is vital to monetary policy. (more…)

US Senate panel seen approving financial reform

March 17, 2010

   By Kevin Drawbaugh and Karey Wutkowski
    WASHINGTON, March 16 (Reuters) – The new financial reform bill introduced in the U.S. Senate will likely be approved at the committee level next week, but its shape could change substantially once it comes before the full Senate and winning Republican support comes into play, analysts said on Tuesday. (more…)

Wachovia in talks with U.S. to settle probe-WSJ

March 16, 2010

   March 15 (Reuters) – The Wachovia Bank unit of Wells Fargo & Co <WFC.N> is in talks with the U.S. Justice Department to settle complaints relating to the alleged failure in bank controls that enabled Mexican exchange houses to launder drug money, the Wall Street Journal said, citing people familiar with the situation. (more…)

CFTC’s Gensler says unconvinced about CDS ban

March 16, 2010

    BRUSSELS, March 16 (Reuters) – The derivatives market remains a “dark ocean” that needs more transparency but it was unclear if a ban on credit default swap trading would work in practice, a top U.S. regulator said on Tuesday. (more…)