Banks, Regulators | featured news

A senior banking regulator urged Congress to raise the federal debt ceiling to prevent a "calamitous" government debt default.

Bank regulators announced settlements on Wednesday with the largest home lenders over allegations of shoddy foreclosure practices, but the pacts did not include financial penalties.

U.S. regulators announced the failures of two banks, in Nevada and Illinois, bringing the total number of failures this year to 28.

U.S. regulators' efforts to settle with banks over improper mortgage foreclosures are being hampered by infighting among the groups involved in the talks, and a settlement may take a while, according to sources familiar with the matter.

Regulators have opened a new line of inquiry in their mortgage foreclosure probe and are asking big Wall Street banks about the beginning stages of mortgage securitization, two sources familiar with the probe said.

Regulators seized six banks Friday in the Southeast, Midwest and Northeast, marking 125 failures for 2010.

U.S. bank failures reached 108 so far in 2010 on Friday as regulators seized five small banks in the Pacific Northwest and the Southeast, none publicly traded.

Regulators closed six more banks around the country, marking the second consecutive year that more than 100 financial institutions have collapsed.

A compensation review of 28 financial companies found that many of the bonus programs that economists said contributed to the financial crisis were still in place.

Regulators shut down two banking units of Irwin Financial Corp. Friday, marking the 93rd and 94th failures this year of federally insured banks.

The Federal Deposit Insurance Corp. was appointed receiver of Louisville, Ky.-based Irwin Union Bank FSB and Columbus, Ind.-based Irwin Union Bank and Trust Co.
As of Aug. 31, Irwin Bank FSB had $493 million in assets and $441 million in deposits, while Irwin Union Bank and Trust had $2.7 billion in assets and $2.1 billion in deposits.