August 13, 2010 – As the scope of the recently passed Dodd-Frank Act is assessed, many are convinced that the massive new regulatory burdens imposed by the new bill could cripple bank lending and restrain economic growth. Despite the good intentions of Congress, the unintended consequences of a massively complex and ambiguous financial reform bill […]
Bank Regulators Perplexed On How To Implement New Financial Regulations
August 13, 2010 By 1 Comment
August 13, 2010 – Congress quickly passed the massive 2,300 page Dodd-Frank Act which will profoundly reshape financial markets for years to come. Numerous federal regulators now have the immense job of writing hundreds of new regulations to enforce the bill’s sweeping mandates. Implementing and complying with the coming tidal wave of new regulations is […]
FDIC Creates New Divisions For Large Bank Failures And Consumer Protection
August 12, 2010 By Leave a Comment
To order to carry out its responsibilities under the recently passed Dodd-Frank Wall Street Reform and Consumer Protection Act, the FDIC announced the creation of a new Office of Complex Financial Institutions (CFI) and Division of Depositor and Consumer Protection (DCP). The Dodd-Frank Act gave the FDIC authority to implement orderly liquidation of institutions designated […]
9,500 Uninsured Depositors Of Failed Banks To Be Reimbursed
July 22, 2010 By 1 Comment
The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Obama on July 21, 2010, permanently increases the deposit insurance limit to a maximum of $250,000. Deposit insurance limits had previously been temporarily increased from $100,000 to $250,000 effective from October 3, 2008, through December 31, 2010. The higher insurance coverage […]
Senate Passage of Regulatory Reform Bill Hailed As Milestone By FDIC
July 15, 2010 By Leave a Comment
July 15, 2010 – New regulations for Wall Street and banks as well as broad new lending protection for consumers now awaits the President’s signature to become law. On a 60-39 vote, the Senate today passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. The broad new powers given to regulators by the new bill was in response […]
Bank Depositors May Need To Take “Prompt and Corrective Action” – Is Your Bank On This List?
June 25, 2010 By Leave a Comment
The Federal Deposit Insurance Corporation, the federal agency in charge of safeguarding the nation’s bank deposits, maintains a confidential Problem Bank List. This list contains the names of institutions that have weak capital positions caused by large loan losses or operational deficiencies that usually lead to failure. The FDIC does not publicize the list for […]
Government’s Effort To Stop Soaring Mortgage Defaults A Failure
June 24, 2010 By 1 Comment
Mortgage Delinquencies and Foreclosures Continue To Soar The record high rate of mortgage delinquencies and foreclosures remains the banking industry’s biggest obstacle towards financial recovery. The horrific statistics for the first quarter on mortgage defaults provides little reason to believe that the housing crisis will end anytime soon. The delinquency rate for all mortgages on […]
Fannie Mae Seeks To Limit Mortgage Losses On “Strategic Defaults”
June 23, 2010 By Leave a Comment
June 23, 2010 – Borrowers who chose to default on mortgages that they are capable of paying will be facing a long wait before they are able to own a home again under new Fannie Mae guidelines. The new rules come at a time when considerable attention is being focused on “strategic defaults” in which […]
Banks Win, Savers Lose As Fed Keeps Rates At “Exceptionally Low Levels”
June 23, 2010 By Leave a Comment
June 23, 2010 – As expected, the Federal Reserve left interest rates unchanged at the end of a two day policy meeting. Citing financial turmoil in Europe and restrained economic growth at home, the Federal Open Market Committee (FOMC) voted to maintain the Fed funds rate near zero. The Fed funds rate has now been […]