In the News
By Kevin G. Hall and David Lightman
Rushing to deliver the broad strokes of an overhaul of the financial regulatory system before leaders of the world's major economies meet in Toronto over the weekend, lawmakers Friday morning partially reinstated a ban on risky betting by commercial banks.
In a marathon session, negotiators from the House of Representatives and the Senate reached a compromise that would limit commercial banks from engaging in Wall Street trading if they're also conducting trading activities on behalf of clients.
by DAVID LIGHTMAN AND WILLIAM DOUGLAS
Final terms of the sweeping financial overhaul legislation being crafted in Congress would create new Offices of Women and Minority Inclusion at all federal financial regulators with the goal of promoting racial, ethnic and gender diversity throughout those agencies.
These offices are being hailed by supporters as an important milestone in pushing diversity at slow-to-change agencies that oversee financial institutions, but behind the cheers are concerns whether the step may be largely symbolic.
by Ronald D. Orol
As House and Senate negotiators continue to work out differences in their versions of bank reform, a House proposal to have $3 billion used to help unemployed homeowners avoid foreclosure may prove to be a sticking point.
Several other disputes still lay ahead, particularly a section that would force banks to spin off derivatives units and a provision known as the "Volcker rule" that would prohibit banks that have federal guarantees from trading on their own account.
by Shahien Nasiripour
As few as 0.1 percent of mortgage modifications initiated under the Obama administration's signature foreclosure prevention program involve reductions of principal, according to a federal report released Wednesday.
Research by state regulators, academics, and by the Federal Reserve shows that principal reductions lead to more sustainable loan modifications. In other words, they're the best way to ensure that troubled borrowers don't lose their homes.
by Danny J. Bakewell, Sr.
Let's start at the beginning: the Federal Reserve system was started in secrecy by the most powerful and influential financiers in America almost a century ago, allegedly in response to a growing need for an organized central banking system. The Federal Reserve Bank was created by the 1913 Federal Reserve Act.
Rep. Maxine Waters (D-Calif) says she wants to set the record straight.
In a letter, published in the Wall Street Journal Friday, the Congresswoman challenged a June 14 editorial in the financial news publication that warned the public that the financial reform bill currently undergoing the reconciliation process in Congress threatens the independence of the Federal Reserve.
The House overwhelmingly approved a bill Thursday aimed at helping the Federal Housing Administration rebuild its capital reserves.
The bill, which passed 406 to 4, will allow the FHA to raise annual premiums on borrowers, helping to bolster its Mutual Mortgage Insurance Fund. The fund has seen loan losses deplete its capital ratio to 0.53%, well below its statutory minimum of 2%.
Higher premiums would bolster the agency's ability to draw more capital into its reserves and strengthen its diminished fund.
By Peter Eichenbaum and Patrick O'Connor
June 17 (Bloomberg) -- U.S. Senator Richard Durbin, faced with growing opposition and slipping support for his proposal to cap debit-card "swipe" fees, said he is working to exempt prepaid cards governments use to distribute benefits.
By Howard Blume
Under pressure from local community leaders, the federal Office for Civil Rights will look at whether low academic achievement of African American students results from discrimination -- intentional or not -- by the Los Angeles Unified School District.
The probe, disclosed in a recent letter to community groups, expands an ongoing investigation into services provided to students who are learning English.
By Joe Flint
During Monday's House Judiciary Committee hearing on Comcast's proposed takeover of NBC Universal, Rep. Maxine Waters (D-Calif.) lamented the lack of TV shows aimed at minority viewers in general and black viewers in particular.
"We don't have any more of that," Waters said, adding, "I really liked `Girlfriends.'" She was referring to the sitcom about four African American women that ran on the now-defunct UPN network for six years.