The rate for a 30-year fixed-rate mortgage edged down to 4.12 percent from the previous week’s 4.13 percent, with an average 0.6 point for the week, Freddie Mac said yesterday. At this time in 2013, the 30-year FRM rate averaged 4.39 percent. --ABA Daily Newsbytes
The Cost of New
Banking Regulation: $70.2 Billion
According to a recent Federal Financial Analytics Inc. analysis, financial reforms cost the six largest U.S. banks $70.2 billion between the end of 2007 and the end of 2013. Regulatory costs for Bank of America Corp., Citibank Inc., Goldman Sachs Group Inc., JPMorgan Chase, Morgan Stanley, and Wells Fargo rose more than 100 percent, or $35.5 billion. The costs are tied to a mix of new regulations and capital surcharges that apply to banks with assets of more than $50 billion. Of the $35.5 billion in added costs, the study indicates that $29.07 billion came from capital costs, $2.06 billion from interchange fee restrictions, $3.95 billion from FDIC premiums, and $407.1 million from supervisory assessments. However, the analysis does not include costs related to product restrictions, liquidity costs, or penalties paid by the banks since the 2008 financial crisis. SNL data reveals the legal costs for credit-crisis and mortgage-related settlements at the six largest U.S. banks rose 62 percent in nine months to over $107 billion.
From "The Cost of New Banking Regulation: $70.2 Billion"
Wall Street Journal (07/30/14) Chaudhuri, Saabira
According to a recent Federal Financial Analytics Inc. analysis, financial reforms cost the six largest U.S. banks $70.2 billion between the end of 2007 and the end of 2013. Regulatory costs for Bank of America Corp., Citibank Inc., Goldman Sachs Group Inc., JPMorgan Chase, Morgan Stanley, and Wells Fargo rose more than 100 percent, or $35.5 billion. The costs are tied to a mix of new regulations and capital surcharges that apply to banks with assets of more than $50 billion. Of the $35.5 billion in added costs, the study indicates that $29.07 billion came from capital costs, $2.06 billion from interchange fee restrictions, $3.95 billion from FDIC premiums, and $407.1 million from supervisory assessments. However, the analysis does not include costs related to product restrictions, liquidity costs, or penalties paid by the banks since the 2008 financial crisis. SNL data reveals the legal costs for credit-crisis and mortgage-related settlements at the six largest U.S. banks rose 62 percent in nine months to over $107 billion.
From "The Cost of New Banking Regulation: $70.2 Billion"
Wall Street Journal (07/30/14) Chaudhuri, Saabira
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