A modern version of advance fee fraud involving cashier's checks and wire transfers is targeting attorneys. Attorneys are contacted by a purported client and asked to collect a debt or perform other legal work. The attorney typically performs only a small amount of legal work before receiving a...

In fall 2008, the Federal Housing Finance Agency (FHFA) placed mortgage giants Fannie Mae and Freddie Mac in conservatorship. As conservator, the FHFA has control over the operations of both companies, but it faces conflicting mandates. On the one hand, the FHFA is tasked with stabilizing the...

During the Great Recession and its aftermath, customers have become increasingly concerned about the fees banks charge for checking (transaction) accounts. Some believe that banks' fee structures are unfair. In particular, commentators often argue that high overdraft and other fees paid by poor...

Improving commercial bank capital requirements has been a top priority on the regulatory agenda since the beginning of the 2008 financial crisis. Unfortunately, some of the information necessary to make informed decisions about capital regulation has been missing. Existing regulations establish...

In the aftermath of the 2008 financial crisis, the Federal Deposit Insurance Corporation (FDIC) brought numerous lawsuits against directors and officers of failed banks asserting that they had breached their fiduciary duty of care. Under state corporate law, duty of care claims arise in...

Banks and credit unions sometimes complain that the examination process regulators use to police banking practices is oppressive. These financial institutions complain that regulators reach unduly negative examination conclusions known as “material supervisory determinations.” Institutions...

Computer hackers are capable of anonymously stealing billions of dollars through fraudulent wire transfers. Banks in Ecuador, Bangladesh, Vietnam, Nepal, India, Russia, and elsewhere have been attacked. When law enforcement is unsuccessful in tracking down the hackers, parties to the fraudulent...

In the aftermath of a school shooting in Florida, the New York State bank regulator urged banks to manage the “reputation risk” posed by doing business with the National Rifle Association (a gun rights advocacy group). As part of Operation Choke Point, a federal regulator told banks to end...

Banks always have someone watching over their shoulders, gauging compliance with law, evaluating risk, and correcting behavior. This is bank supervision. We expect a lot from bank supervision. It is supposed to ensure that banks operate in a safe and sound manner, mitigate systemic risk in the...