JPMorgan Chase & Co. trader Bruno Iksil’s outsized bets in credit derivatives are drawing attention to a little-known division that invests the company’s reserves and fueling a debate over whether banks are taking excessive risks with federally insured and subsidized money.
A top Senate Democrat is urging customers to stop doing business with Bank of America Corp. to protest new debit-card fees, and a House lawmaker is proposing a measure that could make it easier for them to quit.
Fannie Mae’s regulator should provide information on whether $3.3 billion in settlements with Bank of America Corp. and Ally Financial Inc. over faulty mortgages were fair deals for taxpayers, U.S. lawmakers said.
The Federal Reserve Bank of New York is drawing more scrutiny from lawmakers critical of its record as a bank supervisor after releasing documents showing it was aware Barclays Plc underreported London interbank offered rates in 2008.
Shoddy mortgage lending has led bankers into a two-front war, pitting them against U.S. homeowners challenging the right to foreclose and mortgage-bond investors demanding refunds that could approach $200 billion.
A Federal Reserve official told lawmakers the central bank will push to reduce risk in the $1.8 trillion repurchase-agreement market by pressing the largest dealers for faster and more accurate trade confirmations.