What could be Obama's Most Costly Regulation ever

[Charles_Main]

The obscure part of Dodd Frank that will Force Foreign Depositors to Report their Deposits in US banks to the IRS and Pay Taxes on them. Estimates say 3.6 Trillion dollars will be pulled from US banks if the Regulation Goes Forward.

3.6 Trillion less money US banks will have to lend.

Woot

 

[Dick Tuck]

Got a link?

 

[waltky]

Granny don't feel sorry fer `em...

FDIC sues banks over mortgage securities
Aug. 11 (UPI) -- Federal regulators sued 11 major banks for allegedly swindling Colonial Bank by selling the Alabama lender $388 million in mortgage-backed securities.

The defendants, including Wells Fargo, Citigroup and J.P. Morgan Chase, were accused by the Federal Deposit Insurance Corp. of making misleading statements about the strength of the mortgage borrowers and property appraisals. Colonial Bank went under in 2009, a collapse that will cost the FDIC an estimated $2.8 billion. It was the largest since Washington Mutual the previous year.

The Wall Street Journal said the FDIC suit filed in Manhattan was similar to a suit filed last fall by the Federal Housing Finance Agency, the agency that oversees the Fannie Mae and Freddie Mac, over the purchases of $196 billion in mortgage securities in 2005-2008. Most of the banks sued by the FDIC denied immediate comment, although Wells Fargo said the charges were "entirely without merit" and would be contested in court.

Read more: FDIC sues banks over mortgage securities - UPI.com

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Bankers blindsided by N.Y. Iran charges
Aug. 11 (UPI) -- U.S. banking regulators said the global industry was growing worried about the fallout from accusations made by their counterparts with the State of New York.

Benjamin Lawsky's allegations this week that Britain's Standard Chartered took part in allegedly illegal transactions involving Iran have raised concerns that states could step into areas traditionally the sole jurisdiction of federal agencies, The New York Times said Saturday.

Lawsky said Monday Standard Charter conspired with Iran to hide $250 billion in money transfers that went through Standard's New York branch for nearly a decade. The transfers were considered to be technically legal despite U.S. sanctions against Iran, sources told the newspaper.

The so-called U-turn transactions basically use U.S. subsidiaries of international banks as a transit point for transfers from one foreign entity to another. Banks currently look to Washington to determine whether the transactions are legal; however Lawsky's actions have disrupted that tradition and have bankers worried they could now be in the crosshairs of various state regulators as well. One anonymous federal official told The Times Lawsky's charge "has created utter turmoil."

Standard Charter denied Lawsky's allegations of being in cahoots with Iran in a written statement and "strongly rejects the position and portrayal of facts" made by Lawsky, the head of the New York Department of Financial Services. The department has the authority to revoke a bank's charter.

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