News on Office of Thrift Supervision

Govt rewarded bank auditors with big bonuses

2010-03-18T14:15:39Z

<div id="subtitle">As banks binged on risky mortgages, govt rewarded regulators with taxpayer-funded bonuses</div><div><p>As banks gambled on the risky mortgages that helped create the worst financial crisis in generations, the U.S. government handed out millions of dollars in bonuses to regulators at agencies that missed or ignored warning signs that the system was on the verge of a meltdown.</p><p>The...

Regulators to U.S. banks: tighten up on funding

2010-03-17T08:31:26Z

<div><p>WASHINGTON (Reuters) - The Federal Reserve and other banking regulators jointly reminded financial institutions on Wednesday about the importance of managing their liquidity to avoid a repeat of the financial crisis.</p><p>The 50-page policy statement said banks and other deposit-taking firms need to keep accurate projections of...

Thrift regulator defends industry, agency

2010-03-17T06:17:02Z

<div><p>WASHINGTON (Reuters) - Thrifts did not engage in regulatory arbitrage, nor were they a cause of the financial crisis, the top U.S. thrift regulator said on Wednesday.</p><p>John Bowman, acting director of the Hartford Financial Services Group Inc. said Tuesday it will sell $3.05 billion in securities as part of its plan to repay the $3.4 billion it received under the federal financial bailout.</p><p>The financial services company...

Smaller thrift industry breaks even in 2009

2010-02-24T12:30:49Z

<div id="subtitle">Nation's thrifts post small profit 2009 as industry shrinks after 2 years of losses</div><div><p>America's thrifts posted a small profit last year after two years of losses, evidence the industry may be stabilizing amid the economic recovery.</p><p>But the industry also saw significant consolidation as several large thrifts were combined with their parent banks. As a result, the amount of new mortgage loans originated by thrifts dropped last...

Borrowers with modified loans falling into trouble

2010-02-23T13:01:52Z

<div id="subtitle">Report says homeowners whose loan payments are cut by 20 percent or more still falling behind</div><div><p>One of the biggest challenges to ending the foreclosure crisis is this: A surprising number of homeowners who get their monthly payments reduced fall behind again within a year.</p><p>When borrowers get into financial trouble, lenders have several ways to help. They can offer grace periods...

OTS chief doesn't expect quick financial overhaul

2010-02-24T01:00:42Z

<div id="subtitle">Obama's financial overhaul plan doesn't concern bank regulator facing elimination</div><div><p>A top bank regulator is throwing cold water on a financial overhaul plan the Obama administration wants to see passed quickly.</p><p>The Office of Thrift Supervis...

Alabama bank halts mortgage lending

2010-02-24T06:25:38Z

<div id="subtitle">New South Federal halts mortgage lending amid 3rd-quarter losses, higher foreclosure rates</div><div><p>The second-largest thrift in Alabama is suspending mortgage lending amid hefty third-quarter losses as real-estate values moved lower and foreclosure rates turned higher.</p><p>Officials with Reuters) - A Senate proposal to create a federal super cop to police banks faces formidable opposition from the industry, current regulators and a senior House lawmaker who recently blasted the idea.</p><p>Christopher Dodd, chairman of the

U.S. Q2 home foreclosures, mortgage delinquencies up

2010-02-25T00:37:16Z

<div><p>WASHINGTON (Reuters) - The number of home foreclosures in process and delinquent mortgages rose during the second quarter, while home retention actions also increased, U.S. bank regulators said on Wednesday.</p><p>Foreclosures jumped 16 percent to 2.9 percent of serviced mortgages, while home retention actions such as loan modifications rose 21.7 percent, the

US large-loan bank losses triple to $53 billion

2010-02-25T02:48:04Z

<div id="subtitle">Regulators say lenders expected to lose $53 billion in 2009 on loans larger than $20 million</div><div><p>U.S. regulators said total losses from large loans at banks and other financial institutions nearly tripled to $53 billion in 2009, due to a deteriorating economic environment and continued weak underwriting standards.</p><p>According to an annual report released by the four federal bank-re...

US thrifts earn $4M in 2Q; 40 on 'problem' list

2010-02-25T15:22:51Z

<div id="subtitle">US thrifts earn $4 million in 2nd quarter, first profit since late '07; 40 on 'problem' list</div><div><p>U.S. thrifts eked out a $4 million profit in the second quarter, but the number of troubled institutions continued to rise, the government said Wednesday.</p><p>The Office of Thrift Supervision said the ...

Disarray hobbles U.S. financial regulation effort

2010-02-26T00:43:33Z

<div><p>WASHINGTON (Reuters) - Disagreement within the Obama administration over reshaping U.S. financial regulation flared on Tuesday, with top bank regulators defending their turf against key parts of a plan to overhaul bank supervision.</p><p>The officials' def...

Guaranty Financial, No.2 Texas bank, says may fail

2010-02-26T05:06:27Z

<div><p>NEW YORK (Reuters) - Guaranty Financial Group Inc &lt;GFG.N&gt;, the second-largest publicly traded bank in Texas, said it will probably fail after loan losses and write-downs</p><p>left it "critically" short of capital.&a...

U.S. financial regulators stake out turf defenses

2010-02-26T05:06:25Z

<div><p>WASHINGTON (Reuters) - Senior U.S. financial regulators defended their turf on Friday at a congressional hearing on the Obama administration's plan to shake up Washington's banking and market oversight bureaucracy.</p><p>The plan aims to bring a creaki...

Embattled thrift agency official retiring July 3

2010-02-26T19:05:38Z

<div id="subtitle">Previous head of Office of Thrift Supervision retiring July 3 amid criticism of oversight</div><div><p>The previous head of the federal thrift supervision office is leaving the government amid criticism of the agency's role in the run-up to the financial crisis.</p><p>Scott Polakoff, who was placed on leave ...

US to set up financial system oversight council

2010-02-26T20:20:24Z

<div><p> President Barack Obama is to propose a council chaired by the Treasury Department to oversee the supervision of the financial system as part of reforms to avert a reoccurrence of financial turmoil, officials said.</p><p>Under the reforms to be unveiled Wednesday, the U.S. thrifts narrowed considerably in the first quarter, but the number of institutions in trouble increased, the Office of Thrift Supervision said Tuesday.&lt...

Treasury IG: 'Inappropriate' backdating at thrifts

2010-02-27T07:28:36Z

<div id="subtitle">Treasury IG: Agency authorized "inappropriate" backdating of cash injections at 2 thrifts</div><div><p>The Treasury Department's watchdog has uncovered improper backdating of cash infusions at six thrifts including IndyMac, in an investigation that already ha...