Banking Law Prof Blog

How Wall Street Made the Crisis Worse

An explanation you can sing along with:  http://www.npr.org/blogs/money/2010/08/26/129454550/inside-the-sausage-factory-how-wall-street-made-the-financial-crisis-worse 

(ag) August 27, 2010, in Economy

Mortgage Loan Fraud Is On the Rise Again

• The Financial Crimes Enforcement Network (FinCEN) reports that during 2009, mortgage loan fraud increased 4% over 2008.
• Florida and California report the highest incidence of mortgage loan fraud.
• Borrowers represent 50% of the principal subjects of Suspicious Activity Reports (SARs) involving mortgage fraud.
• False statement is the most common secondary suspicious activity reported in connection with mortgage loan fraud.

Link to FinCEN report:  http://www.fincen.gov/pdf/MLF%20Update.pdf

(ag) Aug. 22, 2010, in Lending Issues

Credit Card Reform and the Consequences

Although credit card reform helps consumers, here are some ways banks can still recover lost revenue:

• Higher Interest Rates (even though issuers must conduct a review every six months to determine whether rate increases are still justified)
• Penalty Fees, which can exceed the $25 cap with documented justification to regulators (such as a cost study) and can be raised to $35 for repeated late payments
• Other Fees:  Balance Transfers, Foreign Transactions, Cash Advances

See "Lurking Fees:  What the New Card Rules Won't Banish"  http://articles.moneycentral.msn.com/news/article.aspx?feed=AP&date=20100818&id=11908791 

(ag) Aug. 22, 2010, in Consumer Protection

The First Day of School

Law School resumes tomorrow.  I am teaching Commercial Law (130 students in a four-hour required course) and a Banking Law Seminar.  I am happy to exchange teaching tips!

Comparing Canada & the U.S.

The SEALs Conference was a great opportunity to discuss ideas.  Here's a link to the paper I presented:  Download SEALS Lessons from Canada

Letter of Support for Elizabeth Warren

This week 140 professors of various disciplines sent a letter of support to the White House, encouraging nomination of Elizabeth Warren as the first Director of the Bureau of Consumer Financial Protection.  I am pleased to be one of those supporting her nomination.

Link to letter:  Download Elizabeth Warren letter

(ag) Aug. 7, 2010, in Consumer Protection, Financial Regulatory Reform