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Tag Archives: financial reform

Dodd-Frank: Credit risk will stay after sale

If it’s toxic, you’re vested in it. That’s the rule shaping up as part of the Dodd-Frank reform law. The measure mandates that regulators develop rules requiring any securitizer to retain at least 5 percent of the credit risk for any asset that is securitized and sold, transferred, or conveyed to a third party. The FDIC, says Chairman Sheila Bair, ...

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Say goodbye to traditional free checking

NEW YORK — Free checking as we know it is ending. The days when you could walk into a bank branch and open an account with no charges and no strings attached appear to be over. Now you have to jump through some hoops – keep a high balance, use direct deposit or swipe your debit card several times a ...

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New FDIC has banks assuming more risk

WASHINGTON — Banks will have to share in the risk when they sell investments of the kind that rocked the financial system in 2008 under rules adopted Monday. The Federal Deposit Insurance Corp. is requiring banks hold at least 5 percent of the securities on their books, as part of new rules the regulator adopted today that were required under ...

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Banks buoyed by new global regulations

BASEL, Switzerland — Bank stocks rose today on news that global regulators have agreed on new banking rules aimed at averting another financial collapse. The new rules, which will gradually require banks to hold greater capital buffers to absorb potential losses, are likely to reshape the credit industry by imposing stricter discipline on credit cards, mortgages and other loans. But ...

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Bernanke: Shut down banks that threaten system

WASHINGTON — Federal Reserve Chairman Ben Bernanke told a panel investigating the financial crisis that regulators must be ready to shutter the largest institutions if they threaten to bring down the financial system. “If the crisis has a single lesson, it is that the too-big-to-fail problem must be solved,” Bernanke said yesterday while testifying before the Financial Crisis Inquiry Commission. ...

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Bank survey: Customers opting to pay for overdraft protection

WASHINGTON — A new survey shows 46 percent of bank customers report they did – or will – opt in to their bank’s overdraft program, saying they are willing to pay a fee for the service to ensure that debit card transactions will be approved even if their account is overdrawn. he survey was conducted by Ipsos-Reid, an independent market ...

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Bank CEOs to appear before 'meltdown' panel

WASHINGTON — An inquiry panel is hearing from former CEOs of two big banks that succumbed to the financial crisis, Lehman Brothers and Wachovia Corp., as it delves into the “too big too fail” predicament and potential systemwide risk from financial institutions. Federal bank regulators also are appearing today before the bipartisan Financial Crisis Inquiry Commission, established by Congress to ...

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ABA executive 'disappointed' in Obama

The president and CEO of the American Bankers Association is unhappy with President Barack Obama for signing the financial reform bill yesterday, and he wants to make it known. In a statement, Edward L. Yingling said, “The American Bankers Association is disappointed with the legislation signed by the President (yesterday). While the Dodd-Frank Wall Street Reform and Consumer Protection Act ...

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Cochran: Financial overhaul will increase uncertainty

WASHINGTON — Sen. Thad Cochran (R-Miss.) predicted an increased level of uncertainty among businesses and consumers once the financial regulatory reform bill is signed into law and implemented. Cochran voted against final Senate passage of the Financial Stability Act (HR.4173). With the June 30 House vote and yesterday’s 60-39 Senate vote, the measure now goes to President Obama to be ...

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Financial overhaul bill passes, but work not done

WASHINGTON — In the end, it’s only a beginning. The far-reaching new banking and consumer protection bill awaiting President Barack Obama’s signature now shifts from the politicians to the technocrats. The legislation gives regulators latitude and time to come up with new rules, requires scores of studies and, in some instances, depends on international agreements falling into place. For Wall ...

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