January 05, 2009

Treasury Reveals Investment Details

The Treasury Department made public the details of a $2.8 billion investment it made in 49 banks on December 19. It also closed $1.9 billion in transactions with 43 banks on December 23, and released the details on these transactions on December 29.

December 22, 2008

Agencies Issue Goodwill Rule

The regulators have amended their regulatory capital requirements to permit a banking organization to reduce the amount of goodwill it must deduct from tier 1 capital by any associated deferred tax liability.

December 15, 2008

Treasury Defends TARP

In the face of criticism from Congress and the GAO, Treasury’s Neel Kashkari insists TARP is going well. After all, the economy hasn’t collapsed, has it?

Bank of America Skewered in Small Business Failure

Politicians piled on the big bank when it initially refused to lend to insolvent window and door maker.

ICBA Appeals for Subchapter S Banks

Treasury says it will provide the forms to allow Sub S banks into its CPP — but when?

December 08, 2008

Bernanke, Paulson Promise More Action

Treasury and the Fed say they can take still more action to ease the economic crisis, if necessary.

Senators’ Bill Would Cap Salaries at TARP Institutions

Legislation would limit officers at TARP-aided institutions to making no more than the President of the United States makes.

November 24, 2008

Congress Members Critical of TARP Implementation

Lawmakers at a recent oversight hearing expressed increasing frustration over Treasury’s refusal to use any part of the $700 billion bailout package to directly stem foreclosures.

Treasury Opens CPP to Private Banks

The Treasury released the term sheet for applications to its Capital Purchase Program certain privately held financial institutions.

Senators Seek TARP Relief for Small Businesses

Three Senators have urged Treasury Secretary Henry Paulson to purchase government-backed small business loans through TARP.

November 17, 2008

TARP Redirected to Support Consumer Spending

Implementing a plan he had hatched in secret, Treasury Secretary Henry Paulson, Jr. abruptly shifted the $700 billion Troubled Assets Relief Program toward supporting consumer spending and providing capital for nonbank lenders.

Regulators Urge Banks to Loan

Federal bank regulators issued an interagency statement on November 12 emphasizing the need for all banking institutions to continue lending to creditworthy borrowers.

November 03, 2008

FTC Delays Red Flags Rule for Some

The Federal Trade Commission released an Enforcement Policy Statement that postpones enforcement of the new “Red Flags Rule” for six months, until May 1, 2009, for certain businesses subject to FTC regulation.

Congress Member, Comptroller in Spat over Bank Merger

Rep. Steven C. LaTourette and Comptroller of the Currency John Dugan have engaged in a heated exchange of opinion regarding the recent acquisition of Cleveland’s National City Corporation by Pittsburgh-based PNC Corporation.

October 27, 2008

Financial Crisis Renews “Too Big To Fail” Controversy

Industry consolidation — including government-assisted acquisitions — leads to calls to break up “too big to fail” institutions.

Paulson Explains CPP

Treasury Secretary Henry Paulson filled in some of the blanks about his department’s Capital Purchase Program (CPP) during an October 20 press conference.

ABA Wants BSA Enforcement Reform

The American Bankers Association (ABA) has released a set of recommended policy changes with regard to Bank Secrecy Act/Anti-Money Laundering (BSA/AML) enforcement.

October 06, 2008

Market Turmoil Forces Call Report Changes

The OCC, Fed, and FDIC are seeking comments on proposed Call Report changes that they expect to phase in during 2009.

September 29, 2008

Congress Stumbles on Path to Bailout

Bringing the rival Presidential candidates into the negotiations over the financial bailout bill did not turn out well.

House Approves Credit Cardholders’ Bill of Rights

Signaling a tougher stance, the House approves a restrictive credit card bill.

September 22, 2008

Regulators Propose Changes in Goodwill

The regulatory agencies are considering possible liberalization of the rules governing banks’ treatment of goodwill on their books.

September 01, 2008

Treasury Cautioned on Tax-Exempt Bonds

A bipartisan group of House members has joined big banks in asking the Treasury to go slow on writing rules that would make it less attractive for banks to buy tax-exempt bonds.

August 11, 2008

Law Codifies Student Loan Protections

Congress recently enacted a law that parallels the Code of Conduct that New York Attorney General Andrew Cuomo developed after his investigation of the student loan industry.

August 04, 2008

FASB Grants More Time

Under pressure from legislators, federal regulators, big banks, and auditors, the FASB postponed for a year a proposed accounting rule that would force banks to put more of their assets on their balance sheets.

July 25, 2008

Frank Wants HMDA Disclosures for Business Loans

Should the law require what it now prohibits — collecting race and sex data on business loan applicants?