JPMorgan Chase is still arguing with the Federal Deposit Insurance Corp. over the precise wording of its purchase agreement to buy Washington Mutual five years ago. The debate is part of a long process to resolve who bears the ultimate responsibility for WaMu's failed liabilities.
The Federal Insurance Deposit Corp. is allowed to dismantle a firm if it cannot pass through bankruptcy without posing a significant threat to the financial system. Dodd-Frank gives the FDIC the power to do that, and they plan to use it if needed.
The Federal Deposit Insurance Corp. estimates how much it will cost the insurance fund every time it seizes a bank. But the estimated cost and the actual cost don't always match up, leading to deeper losses than expected.
A federal judge dismissed Bank of America’s lawsuit against the Federal Deposit Insurance Corp. over $1.7 billion in investor losses stemming from the collapse of a large regional bank and a large mortgage lender back in 2009.
The CFPB left the grace period open-ended and most in the industry interpreted that to mean that it will last throughout the rest of 2015, at least. Unfortunately, as welcome as that grace period is, TRID remains a costly and complicated fix that has enormous implications for the whole industry..
“Bad letters damage the brand,” Katherine Porter says. “There’s a contagion effect of this. I think bad letters are unjust. They disproportionately harm the borrowers we need to help the most.” Read More