Posts Tagged ‘regulation’

Will Regulation Solve Cybersecurity Problems?

Posted on November 13, 2017 by Laura Lam

Cybersecurity was a main topic at a recent New York banking conference.  According to Arthur Lindo, senior associate director of the Fed’s division of supervision and regulation, more rules may not be the best answer to protecting the financial system.  “I don’t think the solution to the cybersecurity problem rests in regulation,” said Lindo.  “We’re going to try a more flexible approach.” The Fed and other regulators issued a notice of proposed rulemaking on cyber risk management standards last year, which is typically followed by a prospective rule. After the industry and others involved in computer security discouraged regulators from…

Electronic Communications: A Growing Compliance Risk

Posted on June 01, 2017 by Laura Lam

The 7th annual Electronic Communications Compliance Survey from Smarsh reveals that finaical firms are struggling to keep up with the multitude of electronic communications channels.  More than half of respondents (52%) cited text messages as their current No. 1 source of non-email content compliance risk. About 33% of respondents cited social media communications as the greatest compliance risk, and 8% cited instant messaging. The survey also found that almost half of firms have no oversight or retention of text messages.  “Firms need to leverage new and emerging channels to communicate with their customers and stay competitive, but they’re failing to manage the risk,”…

Is the Future of the CFPB at Stake?

Posted on November 16, 2016 by Laura Lam

Republican lawmakers and big names on Wall Street have been trying to weaken or abolish the Consumer Financial Protection Bureau since it was created more than five years ago.  Now they might actually have some leverage. President-elect Donald Trump says he would “dismantle” Dodd-Frank, the legislation that gave birth to the federal consumer watchdog. His election, combined with the Republican sweep in Congress, gives leverage to the lawmakers and financial groups looking to rein in the independent agency’s powers. The unfriendly environment in Washington is coming just weeks after the CFPB was dealt another major blow. Last month, a federal appeals court ruled that…

Are Banks Having an Identity Crisis?

Posted on June 01, 2016 by Laura Lam

The question is so simple it seems silly: What is a bank?  A bank pools savings and then allocates that capital. Simple, right? But that’s just the start.  In 2016, a big bank also doubles as an enterprise software company and a mobile-apps developer. It is a customer-service organization to big companies and individuals alike. It is a tool of government-mandated social policy. A shareholder-return engine. An international intermediary. A seller and trader of securities. A policeman of criminals. A policeman of itself. And, of late, a public vessel, dirtied by political feeling about everything from inequality to race to…

New Regulations Affect Consumers’ Access to Credit

Posted on May 11, 2016 by Laura Lam

Credit card debt is an issue for many families.  According to The National Foundation for Credit Counseling, 1 in 3 Americans roll over a balance from month to month. Despite that figure, a new Harvard study finds that credit card debt is less of a problem for Americans today than it used to be, and that while credit card demand remains fairly high, more consumers are choosing not to use credit cards at all. An over 250% surge in credit card-related regulatory restrictions by U.S. financial regulators since 2007 has contributed to a 50% drop in annual credit card originations to lower-risk-score…

A Change is Gonna Come: New Mortgage Rules for 2014

Posted on January 22, 2014 by Saldutti

The Consumer Financial Protection Bureau (CFPB) thinks it can stave off a future housing crisis with new regulations. Starting Jan. 10, a bevy of new rules came into play, affecting future homebuyers nationwide. Banks have already adopted some of the changes. They have every reason to. By following new regulations, they’ll enjoy insulation from fraud charges or legal liability — a banker’s worst nightmare. MotleyFool.com outlines the three biggest changes coming down the pipeline. 1. Goodbye, teaser rates – If there’s one thing that played a role in the last crisis, it’s this. Teaser rates are … well, a tease….