American Banker

New America's event is discussed in American Banker: "There is no remote chance of it happening," Frank told reporters after remarks at a conference on underbanked consumers held in the Capitol. ... Original Article

"We've been jumping from program to program, and if there is an infinite number of things we can do with money, there is a need for an infinite amount of money," said Ellen Seidman, director of the New America Foundation's Financial Services and Education Project and a former director of the Office of Thrift Supervision. "If you keep expanding the scope of what it is you are going to do with the money, you keep expanding your need for money."… more

The failure of the largest thrift in the nation has sealed the fate of the Office of Thrift Supervision, observers said Friday.

Washington Mutual Inc. accounted for about 20% of the assets overseen by the agency and 12% of its budget. Its collapse and subsequent sale to JPMorgan Chase & Co., which said it would not keep Wamu's thrift charter, heightens concerns about the OTS' viability and… more

Despite a live presidential explanation Wednesday night, two days of testimony by top government officials, and an endless series of lawmaker press conferences, many questions about the proposed bailout plan persist. Below, we offer answers to some frequently asked questions:

Who is the bailout supposed to help? . . .

Why doesn't the government just buy vacant real estate? Wouldn't that be easier? . . .

Observers… more

Ellen Seidman, a former OTS director who is now the director of the New America Foundation's Financial Services and Education Project, said the agencies' options for helping banks whose capital levels are imperiled include requiring the suspension of dividend payments, working to restructure banks' balance sheets, and, "in extreme scenarios, engineering a merger." She stressed, though, that current law gives banks and thrifts significant time "to raise capital or do whatever is necessary to get themselves back into position." more

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