Links in “Banks”

The American government's hunt for illicit money has led it from the French banking giant BNP Paribas to the German Commerzbank. The investigation is still under way, but it would seem that‚ in comparison with the French, the Germans will be getting off relatively easy. [7/8/14]

With any new currency, the question arises, "Should the CFPB regulate it?" However, the jury is out on the benefits of government regulation of Bitcoin because, as one writer explained, its great success might have come from the very fact that it was and is unregulated. Will regulation halt its progress or give it a wider appeal to consumers? [7/8/14]

The Securities Industry and Financial Market Association (Sifma) has proposed that a council discussing forthcoming cyber security issues would be meritorious. They worry that the next trend of attacks will be more harmful than the last, perhaps completely wiping out books, records, and account balances all together. [7/8/14]

The government is constantly seeking ways to eliminate terrorism, drug use, and money laundering, and they believe that limiting international money transfers can put these activities in check. Many banks are reducing the ease and increasing the cost of these transfers, which puts a huge strain on immigrant populations typically categorized as low-income. [7/7/14]

SunTrust, a bank in Atlanta, is racking up the fines for "deficiencies in [its] administration of HAMP during the recession." [7/7/14]

The CFPB has been very clear about the requirements for qualified mortgages. So what about non-QM loans? Well, they happen to be one of the most profitable ventures for lenders, and therefore lenders are trying to figure out how to do this kind of lending safely. [7/7/14]

Inspector general is estimating the cost of the CFPB's renovations, which calls for a waterfall and a tree-shaded reflecting pool as a "place of rest and contemplation," to come in at around $216 million, which is generating some attention in Congress. [7/3/14]

This week, Idaho's "Payday Loan Act" went into effect. Loans are restricted to 25% of borrower income or $1,000, and lenders are required to provide an extended payment plan over a 60-day period for borrowers who are struggling to repay their loan. [7/3/14]

A GAO report released on June 26 discussed the potential risks and benefits for consumers. According to the GAO, the risks facing consumers include lack of bank involvement (and thus the protections from the FDIC and other insurers), limits on financial recourse in the event that the virtual currency account is hacked, and volatile prices. The report found that addressing the risks associated with virtual currencies such as Bitcoin and other crypto currencies will require interagency collaboration, including a stronger presence from the CFPB. [7/3/14]

The message to BNP Paribas' shareholders from yesterday's $9 billion fine may not have resonated quite as much as the DOJ had hoped. After announcing that it wouldn't reduce its dividend or derail growth plans, the bank posted its biggest advance in a year. [7/2/14]