American Banker

Is the OTS Obsolete? (U.S. Banker, subscription only)

. . . "The system has worked well enough," says Ellen Seidman, who ran the Office of Thrift Supervision under President Clinton and now directs the New America Foundation's Financial Services and Education Project in Washington, D.C. "It's a case of 'If it isn't broke, don't fix it.' Though it's entirely reasonable that people are raising these questions now, it's not great for morale." Abolishing the OTS would only raise… more

Assessing Obama's Bank-Issue 'Blank Slate' (American Banker) "When you start campaigning in places like Florida and California, where these issues are front and center, you will hear more about it," said Ellen Seidman, who ran the Office of Thrift Supervision under President Clinton and now directs the New America Foundation's Financial Services and Education Project. ...

With foreclosures reaching record levels and predictions for further trouble ahead, the Federal Reserve Board on Tuesday unanimously approved potentially sweeping changes to how mortgages are marketed, made, and serviced, especially in the nonprime market. Will the Fed be able to meet its goal of a "comprehensive set of protections to consumers" when the comments come flying?

The proposed revisions to regulations under the Truth in Lending Act are designed to realign relationships in the mortgage business, so borrower and lender… more

Over a dozen financial institutions have applied to be the issuer of the Treasury Department's Direct Express electronic bank accounts for depositing Social Security and other federal benefits.

The Treasury touts the product as a safer, easier, and more convenient way to receive and access monthly benefits. In part, this is a strategy by the federal government to lower expenses for taxpayers by saving on the issuance of benefit checks. Compared with the 89 cents for sending a check… more

Amid widespread complaints that mortgage loan modification is not moving fast enough, Treasury Secretary Henry Paulson on Wednesday opposed pressure for across-the-board modifications, said bankruptcy reform could prove counterproductive, and painted a relatively upbeat picture of the ability of struggling homeowners to handle interest rate resets.

At a press conference announcing a group of lenders, servicers, and others who have agreed to step up counseling efforts, Mr. Paulson said the group would not consider categorical modifications, signaling that they… more

Two states are considering duplicating a program in New York that rewards banks with government deposits for opening branches in neighborhoods with little or no banking services.Lawmakers in California and Texas have introduced bills that would create "bank development districts," specially designated low-income areas that are underserved by banks...The bills are modeled after a nine-year-old New York law that offers banks select state and municipal deposits for two years, partial property tax breaks for 10 years,… more

Newborns typically are mailed birth certificates and Social Security cards within weeks of leaving the hospital. In at least two states they could soon be receiving other important documents: savings account statements.A bill being considered in the California Legislature would create savings accounts for every child born in the state after Jan. 1, 2008. Each account would be seeded with $500 in state funds, and the money could be used only for specific purposes, such as college or… more

Senators from both sides of the aisle addressed a public policy institute last week on issues that could shape banking policy. Democratic Sen. Hillary Clinton and Republican Sen. Lindsey Graham spoke to members of the New America Foundation about the need for bipartisan compromise on issues like a federal savings account and a government-run investment plan.An "American Stakeholder Account," one of the foundation's Ten Big Ideas for a New America, would start with $6,000 for every… more

Financial institutions have escaped the wrath of nonprofit environmental organizations for many years, but they'd better be careful.

Unlike their colleagues in the oil business, financiers have … more