Weekly Topic Update (Apr 15 to Apr 21)

Banks request break on accounting rule


Banking regulators are asking for flexibility within an accounting rule which will force banks to book losses on soured loans more quickly. Some say the rule could cut into their regulatory capital since it will require them to book all expected losses from their loans as soon as they're issued. It may also compel some banks to significantly increase their loan-loss reserves.

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Source: Wall Street Journal

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Removal of Transferred OTS Regulations Regarding Minimum Security Procedures Amendments to FDIC Regulations

OCC, FDIC, FRS | Deposits | Lending | Commercial Lending | Mortgage Lending | Register Notice | 04/11/2018

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Wells Fargo fined $1B for loan abuses

Reuters • Lending • Industry News

Financial regulators proposed $1 billion in penalties for Wells Fargo to resolve the investigation into auto insurance and mortgage lending abuses at the bank. Analysts said that while the $1-billion fine wouldn’t make a dent to its balance sheet, the bank will require time to repair the damage to its reputation.

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Credit unions provide legitimate alternative to payday lenders for the vulnerable: Consumer advocates

Huffington Post • Lending • Industry News

There’s a growing movement of alternatives to predatory payday lenders, aimed at better supporting those in need - credit unions. Like banks, they offer to check, savings and loan services. However, because they are nonprofit entities set up by members and governed by a volunteer board, they charge discounted loan rates and lower fees than traditional banks. Leaders in this space say community development credit unions are key to providing fair financial opportunities to all.

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Backpage.com CEO to serve time for money laundering

Law360 (sub. req.) • AML BSA CTF • Industry News

The CEO of the now-shuttered Backpage.com pled guilty to conspiracy and money laundering in California. Additionally, the company itself pled guilty to human trafficking. CEO Carl Ferrer will be sentenced to up to five years in prison, and his cooperation in the ongoing investigation could lead to criminal charges against others associated with the company.

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