As if going through the nightmare of foreclosure proceedings wasn’t bad enough, some of the victims who have been compensated as a result of a settlement between big banks and U.S. regulators can’t even get their darn checks to cash. Most of those borrowers only received between $300 and $500, and have been told their checks were rejected when trying to get their money.
Back in April 2011, in the wake of the robosigning scandal and in light of numerous instances of erroneous seizures, the Office of the Comptroller of the Currency and the Federal Reserve System ordered independent reviews of the foreclosure process at the country’s 14 largest mortgage servicers. Now, two years on, the Govt. Accountability Office is saying these regulators allowed the review process to become inconsistent and overly complex. [More]
Although the idea of a trillion-dollar platinum coin swooping in to be deposited at the Federal Reserve and save us from hitting the debt ceiling is a nice one, it’s just not gonna happen, says the Treasury Department. Even if it did, the Federal Reserve says it wouldn’t accept the deposit anyway so there’s no point in talking about it. Thanks for spoiling the fun, guys. [More]
One pretty blatant tip that a whole bunch of money isn’t yours? If the bills aren’t even in circulation yet. The FBI doesn’t believe that $20,000 worth of $100 bills belong to a US Airways baggage handler for that very reason and arrested him yesterday for swiping them from a shipment of money headed to the Federal Reserve in East Rutherford, N.J. [More]
When I was a tiny little lad, my coach said the only thing keeping me from being a great soccer player was confidence… and my utter inability to kick the ball in anything resembling a straight line, but also my confidence. Now some number-crunchers at the Federal Reserve Bank of San Francisco say that the country’s unemployment rate would be a touch lower if we had all just been less uncertain about the economy.
Too often when people talk about being a good consumer or being educated about financial matters, the big picture is ignored in favor of images of individual wealth and well-being. But Federal Reserve Chairman Ben “It rhymes with stanky” Bernanke says that it’s really in everyone’s best interest for us to be smart about what we do with our money.
Yesterday, Morgan Stanley finally finished selling off its one remaining unit involved in servicing subprime mortgages. Today, the Federal Reserve gave Morgan Stanley some unwelcome news: It must review thousands of foreclosures processed by that now-former subsidiary.
For the last two years, all upbeat statements about the economy have been followed with a huge “but,” and Federal Reserve Chairman Ben “Feel the” Bernanke isn’t going to buck that trend.
In spite of reported concerns that Capital One’s proposed purchase of ING Direct would create yet another bank that was too big too fail, the Federal Reserve announced yesterday that it has signed off on the $9 billion deal.
The Federal Reserve is expected to roll out new rules soon that could make big banks keep more capital reserves on hand, presumably leaving them with less money to lend. The idea is to make banks act more responsible with their stacks of chips and not need the government to bail them out.
It’s tough for consumers to rationalize how inflation could be a good thing, especially if they haven’t received pay increases in years, but increasing costs are believed by many to be a sign of a healthy economy. That’s why Federal Reserve Chairman Ben S. Bernanke said Wednesday that the central bank will keep a close eye on inflation levels and may altar monetary policy to maintain the phenomenon if prices start to level off.
With folks at the Federal Reserve already reportedly concerned that the sale of ING Direct to Capital One could create another too-big-to-fail bank, a group representing the nation’s smaller banks has raised its voice in concern.
No one likes to imagine their own undoing, but that’s what the government has asked the largest American banks to do, mapping out liquidation plans in “living wills” that will help financial regulators pick apart their carcasses if they go under. The banks have until next year to submit their plans, which are mandated by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.
Back in July, Capital One announced a deal to purchase online bank ING Direct USA for around $9 billion. And even though Cap One tried hard to quell ING customers’ screams of “nooooooo,” the folks at the Federal Reserve are reportedly a bit worried that the deal might create another bank so big that its failure would have a disastrous impact on the economy.
In a move meant to ease uncertainty in the markets, the Federal Reserve pledged to keep interest rates low for the next two years. The Fed’s target rates, which banks use to set loan rates, have been close to zero since 2008, and previously said they would stay there for “an extended period.” The two-year designation is a sign that the Fed expects the economy to remain in troubled waters until at least 2013.
The Federal Reserve unveiled its ruling today on the fees banks can charge merchants for processing debit cards at 21 cents a swipe. The cap is far less restrictive than the 12 cent ceiling set by the Dodd-Frank bill, but is still less than the current 44 cent average. It’s uncertain how this will affect the consumer.
While some of us have managed to go back to our pre-bust ways of eating gold-dusted diamonds and speculating on real estate, the Federal Reserve said today that the overall economic recovery hasn’t moved as swiftly as it had previously expected.
The New York Federal Reserve just issued its latest quarterly Household Debt & Credit report — which looks at the state of mortgages, home equity borrowing, auto loans and credit cars — and, for the first time in a few years, there are a number of not-so-bad things to say about things.