News Clips – Friday, June 24, 2011

 

Insurance Department Licensees May Now Obtain Copies Of New And Renewed Licenses Accessing Website Posted on June 24, 2011  by admin

The New York State Insurance Department issued the following news release: Superintendent James Wrynn today announced that insurance agents, brokers and other licensees of the New York State Insurance Department are now able to obtain and print copies of new and renewed licenses by accessing a self-service feature on the Insurance Department’s website. Insurance News – Insurance Department Licensees May Now Obtain Copies Of New And Renewed Licenses Accessing Website .

Posted in Insurance Department , Insurance Industry , Insurance Regulation , Insurance Regulation (Global)  | Comments Off

Press Release | New York And Swiss Regulators Sign Cooperation Agreement Posted on June 24, 2011  by admin   The New York State Insurance Department and the Swiss Financial Market Supervisory Authority (FINMA) have executed a memorandum of understanding (MoU) allowing for closer cooperation between the two regulatory bodies. The agreement was announced today by New York State Insurance Department Superintendent James Wrynn and Dr. Patrick Raaflaub, CEO of FINMA, the government agency responsible for financial regulation in Switzerland. FINMA’s responsibilities include supervising banks, insurance companies, stock exchanges, securities dealers and other financial intermediaries. New York And Swiss Regulators Sign Cooperation Agreement . Posted in Insurance Regulation , Insurance Regulation (Global)  | Comments Off

CFPB Seeking Input on Regulating Nonbanks Posted on June 24, 2011  by admin   Credit union executives who want to make recommendations on how the Consumer Financial Protection Bureau regulates nonbank entities, such as nonbank mortgage companies, payday lenders, and private education lenders, can file comment letters with the bureau. The bureau, which is scheduled to begin operating on July 21, is seeking comments on questions such as how large firms must be to be included in the regulation and whether there should be across-the-board measurements or should they vary based on the size of the market.  Consumer Bureau Seeking Input on Regulating Nonbanks . Posted in CFPB , Consumer Protection , Financial Regulation  | Comments Off

Health exchange awaits Senate Posted on June 24, 2011  by admin   State leaders struck a compromise on a health exchange that will serve as a marketplace for individuals and small-business employees to find insurance. It is uncertain if the Senate will consider the bill due to its full docket Thursday evening. The Assembly approved the bill earlier Thursday to create a health exchange combining aspects of two proposals offered by the state Senate and Gov. Andrew Cuomo’s office. Health exchanges are being created across the nation as part of the health reform law approved by Congress last year. With the legislative session drawing to a close, state leaders were under pressure to create an exchange before leaving Albany for the summer. Without it, New York would miss federal deadlines to qualify for up to $100 million to set up the exchange.  Health exchange awaits Senate – Times Union . Posted in Health Care Reform , Health Insurance Exchange , Insurance Industry , Insurance Regulation  | Comments Off

A Better Alternative to Living Wills? Posted on June 24, 2011  by admin   What might work better, instead of just breaking up banks into smaller, arbitrarily chosen parts, would be to impose limits on each type of risks that they are exposed to. That way, if a single corner of the market collapses, each bank will have enough capital to survive a panic. Of course, this would also have the side-effect of limiting the speed of growth of banks, since they couldn’t just accumulate, say, many billions of dollars of mortgage loans each year as a housing bubble inflates. So the key isn’t to simply break banks up, but regulate them in such a way that they can withstand a catastrophic event hitting some segment of the market. It isn’t size that matters, but the ability to endure a sufficiently ugly episode without being destroyed. A Better Alternative to Living Wills? – Daniel Indiviglio – Business – The Atlantic . Posted in Bank Closings , Bank Regulation (domestic) , Living Wills (Banks) , Too Big To Fail  | Comments Off

Audit says FHFA failed to address consumers’ GSE complaints Posted on June 24, 2011  by admin   The Federal Housing Finance Agency mishandled consumer complaints about Freddie Mac and Fannie Mae, including complaints about possible foreclosure actions, the FHFA Office of Inspector General said in a report this week. Late last year, the OIG launched an investigation into how FHFA — the conservator of Fannie and Freddie – handled consumer complaints filed against the GSEs after noting an upswing in fraud, waste and abuse complaints within the mortgage segment. The OIG investigation concluded that 70% of all consumer complaints filed with the FHFA during the audit period were tied to the GSEs. In its report, OIG outlined several procedures for the FHFA to improve its oversight of GSE consumer complaints.  Audit says FHFA failed to address consumers’ GSE complaints « HousingWire . Posted in Consumer Protection , Fannie Mae/Freddy Mac , FHA , Foreclosure , Mortgage Industry  | Comments Off

Citi Skimps on ‘Standard’ Customer Credit Monitoring Posted on June 24, 2011  by admin   fter a massive data breach last month, Citigroup did not offer its hacked clients the same degree of identity-theft protection that many other companies provide, drawing criticism from privacy advocates. Citigroup, which had over 360,000 credit card accounts exposed last month, sent letters to affected customers this month with advice on protecting themselves against identity theft. But unlike other large U.S. companies breached by cybercriminals, Citigroup did not offer to buy or give all affected customers a year of preventive credit file monitoring services, according to a sample of a letter the bank sent to many customers and filed with regulators in Maine.  Exclusive – Citi Skimps on ‘Standard’ Customer Monitoring – NYTimes.com . Posted in Consumer Protection , Cyber Security  | Comments Off

House committee votes to slash CFPB funding Posted on June 24, 2011  by admin   The House Appropriations Committee voted Thursday to cap funding for the Consumer Financial Protection Bureau at less than half of what was originally estimated for the agency. The legislation provides annual funding for the Treasury Department, the Securities and Exchange Commission and other agencies for the fiscal year 2012. According to the bill, the Federal Reserve, which will fund the CFPB, cannot obligate more than $200 million to the agency, but the Fed estimates the CFPB will require $500 million. The bureau is scheduled to open July 21 and will become the de facto regulator for the entire mortgage industry, from origination to servicing. According to Dodd-Frank, the Fed will supply 10% of its expenses to form the agency through its first year. That goes up to 11% in the second year and 12% every year after.  House committee votes to slash CFPB funding « HousingWire . Posted in CFPB , Mortgage Industry  | Comments Off

Deutsche’s Firing of Top Trader Sparks Probe Posted on June 24, 2011  by admin   In the autumn of 2009, Deutsche Bank quietly fired one of its top derivative traders in London after a colleague in New York complained about finding “substantial trading anomalies” in a multibillion dollar portfolio of high-risk credit default swaps managed by the German-based bank, Reuters has learned. The bank dismissed Alex Bernand after a quick internal investigation prompted by the employee’s complaint led to the discovery of improper trading in one of Bernand’s personal brokerage accounts…The documents, part of a Sarbanes-Oxley whistleblower action filed against Deutsche in May 2010 by the employee in New York, also reveal that the SEC opened an inquiry last year into a related allegation that some of the assets in the derivatives portfolio overseen by Bernand may have been improperly valued in order to hide trading losses.  Deutsche’s Firing of Top Trader Sparks Probe – NYTimes.com . Posted in Bank Regulation (domestic) , Bank Regulation (Foreign) , Credit Default Swaps , Derivatives , Financial Fraud , Financial Regulation , Sarbanes-Oxley/SarBox  | Comments Off

Dems call for removal of top banking regulator Posted on June 24, 2011  by admin   en. Sherrod Brown (D-Ohio) sent a letter to Treasury Secretary Timothy Geithner Thursday calling for Walsh’s removal as soon as possible, arguing that his “deeply flawed” resistance to strong capital requirements for banks is a threat to the nation’s financial stability. “Wall Street was nearly brought down our economy three years ago in part by gambling with other peoples’ money…Less debt and more equity will keep our banks on sound footing and ensure that credit is available to Main Street businesses and consumers. Mr. Walsh does not appear to understand this — and that is why he must be replaced as soon as possible.” Dems call for removal of top banking regulator – The Hill’s On The Money . Posted in Bank Closings , Financial Crisis , Financial Regulation , OCC , Treasury Department  | Comments Off

Standing RESPA Dispute to Get Supreme Court Analysis Posted on June 24, 2011  by admin   The Supreme Court on Monday agreed to review the standing of a woman who accused an insurance company of bribing title companies with millions of dollars to enter into exclusive referral agreements. A federal judge in California had refused to grant class certification to the plaintiff…but it refused to dismiss the complaint against First American and its subsidiary on the basis of standing…A three-judge panel of the Pasadena-based federal appeals court agreed that the damages provision of the Real Estate Settlement Procedures Act of 1974 gives rise to a statutory cause of action even if an overcharge has not occurred.  Courthouse News Service . Posted in Insurance Industry , Lawsuit , Mortgage Industry , Title Insurance , Truth in Lending/RESPA  | Comments Off

UK FSA’s failings to be revealed in RBS report Posted on June 24, 2011  by admin   FSA staff will come in for criticism in the report, according to Lord Turner, the regulator’s chairman, who said it would show the organisation’s approach to supervision had been “inadequate” and “severely deficient. Speaking at the FSA’s annual public meeting, Lord Turner gave the strongest guidance yet on the form the much delayed report will take. The report will focus on three subjects, said Lord Turner: first a description of the factors that led to RBS’s failures, second, the issues the FSA investigated and why it concluded there were no grounds for enforcement action against any of the bank’s staff, and third, an account of the regulator supervised RBS in the run up to the crisis. FSA’s failings to be revealed in RBS report – Telegraph . Posted in FSA  | Comments Off

The Madness of the SEC’s Venture Capital Exemption Posted on June 24, 2011  by admin   When Congress granted the Securities and Exchange Commission new powers to require private investment funds to register and make disclosures, it ordered the agency to create an exemption for venture capital funds. The rules announced Wednesday include a venture capital carve-out. But the carve-out is so complex, many venture capital funds might just decide it isn’t worth the hassle. The Madness of the Venture Capital Exemption – CNBC . Posted in Financial Regulation , SEC  | Comments Off

Hedge Funds Face New Reporting Requirements – NYTimes.com Posted on June 24, 2011  by admin   A divided SEC approved new rules on Wednesday that would impose sweeping disclosure requirements on large hedge funds and other private investment advisers, a first for an industry that has long eluded Washington oversight. The rules will require hedge funds, private equity shops and other advisers that manage more than $150 million to register with the agency and turn over crucial information, including the funds they oversee and their investors. Venture capital funds and some small hedge funds are excused from the rules, although these firms will still have to report some basic information to regulators.  Hedge Funds Face New Reporting Requirements – NYTimes.com . Posted in Financial Regulation , SEC  | Comments Off

Regulators’ News Conference on First FPC Report Posted on June 24, 2011  by admin   Britain’s new systemic risk watchdog published its first set of recommendations on Friday as European policymakers scrambled to resolve Greece’ sovereign debt crisis. Following are highlights from a news conference held by Bank of England Governor Mervyn King, who also chairs the Financial Policy Committee. Regulators’ News Conference on First FPC Report – NYTimes.com . Posted in Bank Regulation (domestic) , Bank Regulation (Foreign) , Basel II | Basel III  | Comments Off

JPMorgan Gets a Break Where Goldman Got Nailed Posted on June 24, 2011  by admin   Once again the Securities and Exchange Commission has filed a complaint against a too-big-to- fail bank that hinges on the meaning of one word: “selected.” Last year, the bank was Goldman Sachs, which the SEC accused of intentional fraud. This week, the defendant was JPMorgan, which got far easier treatment. Why the different approaches? The agency isn’t saying. Judging by the allegations, both companies in essence did the same thing. Yet JPMorgan caught a break, and Goldman didn’t.  JPMorgan Gets a Break Where Goldman Got Nailed: Jonathan Weil – Bloomberg . Posted in Bank Regulation (domestic) , CDOs, Collateralized Debt Obligations , Financial Fraud , Financial Regulation , Mortgage Backed Securities , SEC  | Comments Off

State & Political News Roundup | June 24, 2011 Posted on June 24, 2011  by admin   Panel to Scrutinize Causes Behind Weak State Budgets Americans who have wondered whether Illinois, California and other troubled states are slouching toward the fate of Greece may get their answer in the coming months.  Richard Ravitch, who won an emergency appointment as New York’s lieutenant governor during the 2009 budget impasse, announced a high-level new project Thursday to untangle the finances of the states and shine a light on their hidden debts.  Mr. Ravitch will lead the project together with Paul A. Volcker, the former Federal Reserve chairman who is credited with wringing double-digit inflation out of the United States economy in the 1980s. http://www.nytimes.com/2011/06/24/business/economy/24pension.html?ref=nyregion Layoffs still on minus CSEA Worried state workers can breathe easier — at least this week — as the scheduled distribution of layoff notices for those in targeted jobs has been delayed following a tentative contract agreement between the state and a major union, the Civil Service Employees Association. With leadership of the 66,000-member CSEA lending tentative approval to the agreement announced Wednesday, the Cuomo administration has removed members of the union from its layoff list as it awaits ratification by the rank and file. http://www.timesunion.com/local/article/Layoffs-still-on-minus-CSEA-1437399.php Gov’s labor deal rude awakening for unions A New reality descended on the city’s municipal labor lead ers yesterday from Albany.  In a remarkable feat, Gov. Cuomo persuaded officials who run the Civil Service Employees Association to accept a five-year contract that freezes wages in Years 1 through 3 and provides 2 percent raises in Years 4 and 5.  Workers would also have to take nine days of unpaid leave over the next two years.  Finally, they’d have to cough up more to cover their health insurance.  If the pact is ratified, the unmistakable signal to everyone involved in labor negotiations in New York would be that the landscape has been dramatically altered.   http://www.nypost.com/p/news/local/gov_labor_deal_rude_awakening_for_BXQ13NNnbrj31Sq1Tn8PtN – ixzz1QC06fUlv New Jersey Lawmakers Approve Benefits Rollback for Work Force New Jersey lawmakers on Thursday approved a broad rollback of benefits for 750,000 government workers and retirees, the deepest cut in state and local costs in memory, in a major victory for Gov. Chris Christie and a once-unthinkable setback for the state’s powerful public employee unions. The Assembly passed the bill 46 to 32, as Republicans and a few Democrats defied raucous protests by thousands of people whose chants, vowing electoral revenge, shook the State House. Leaders in the State Senate said their chamber, which had already passed a slightly different version of the bill, would approve the Assembly version on Monday. Mr. Christie, a Republican, was expected to sign the measure into law quickly. http://www.nytimes.com/2011/06/24/nyregion/nj-legislature-moves-to-cut-benefits-for-public-workers.html?ref=nyregion Late Night Few Results at the Capitol After preparing for an all-night session,  lawmakers left the Capitol Thursday evening  without taking action on a plan to cap local property taxes,  raise SUNY tuition or deciding whether to have a vote potentially legalizing same-sex marriage.  “ We’re not going to work under time constraints,”  Senate Majority Leader Dean Skelos said. “We’ll do it when the conference is ready.” A dispute over mandate relief was the stated cause.  Lawmakers have agreed to create a new mandate relief council, but are having trouble agreeing on the scope of their proposal. Obama visit to Fort Drum stirs range of emotions Soldiers were thrilled that the President made his first visit to the army base in northern New York. The trip on Air Force One came less than 24 hours after Obama announced in a live television address that he would withdraw by the end of next summer the more than 30,000 additional troops he ordered into Afghanistan as part of a military “surge.”  Inside the Watertown-area base, Obama spoke to service members who had just returned from Afghanistan and military families who have members overseas. Many were disappointed by or cautiously supportive of the plan. http://www.timesunion.com/local/article/Obama-visit-to-Fort-Drum-stirs-range-of-emotions-1437436.php Posted in State & Political News Round-Up  | Comments Off

Elizabeth Warren on Nonbank supervision Posted on June 23, 2011  by admin   Per release: “On Thursday … at 11 a.m., Elizabeth Warren, Special Advisor to the Secretary of the Treasury on the Consumer Financial Protection Bureau (CFPB) and senior CFPB officials will host a press briefing call to discuss next steps on a key element of the agency’s nonbank supervision program: the statutory requirement to define who is a ‘larger participant’ in certain consumer financial markets…Bank supervision isn’t new. What is new is that, for the first time, under the Dodd-Frank Act, many nonbank financial companies will also be subject to federal supervision.” Here’s the CFPB’s take on what a nonbank provider is: http://www.consumerfinance.gov/explainer-what-is-a-nonbank-and-what-makes-one-larger/ Posted in Bank Regulation (domestic) , Consumer Protection , Dodd-Frank , Treasury Department  | Comments Off

Geithner Blames SBLF Delays on Bank Regulators Posted on June 23, 2011  by admin   Appearing before the House Small Business Committee, Geithner acknowledged that Treasury was “surprised” and “disappointed” that the Small Business Lending Fund was taking longer to implement than originally expected. But he said banking regulators had to ensure the banks that received the funds were healthy, a requirement that Congress made when it passed the law nine months ago. The law requires Treasury to consult with a bank’s primary regulator before approving an application. small business lending program, treasury secretary timothy geithner, bank regulators – Bank Investment Consultant . Posted in Bank Regulation (domestic) , Small Business , Treasury Department  | Comments Off

Want to Pay Less for Car Insurance? Have Good Credit Posted on June 23, 2011  by admin   Everyone knows that having a good credit score qualifies you for lower interest rates on loans and better terms on credit cards. But it can also affect the rates you pay for car insurance — sometimes quite significantly, when the savings are measured over time. The most important factors in setting rates generally are your age, where you live and driving record, says Des Toups, senior managing editor of CarInsurance.com, a rate-quoting Web site. But most insurers also check your credit when quoting a rate, because there’s a correlation between your score and the likelihood you will file an insurance claim. The higher the score, the less likely you are to file one. While the practice of checking credit scores for auto insurance quotes is widespread, it’s still somewhat controversial.  Want to Pay Less for Car Insurance? Have Good Credit – NYTimes.com . Posted in Insurance Industry , Personal Finance  | Comments Off

← Older posts