Financial Services Regulation

Mar. 11--Sweeping credit card reforms that kicked in Feb. 22 promised to snuff out the card industry's most abusive practices, but experts say it's no time for consumers to let their guard down.

The Credit Card Responsibility and Disclosure Act will cut deeply into card issuers' revenues, so the industry has been busy trying to adapt by devising new fees and practices designed to refill the till.

"But there will be new fees" for consumers to contend with, he said.

WARNING ON DERIVATIVES: The head of the Securities and Exchange Commission is calling anew for Congress to impose new oversight on financial derivatives.

Mary Schapiro warns that allowing risky instruments like credit default swaps to continue unfettered could bring further economic damage.

The chairman of the U.S. Commodity Futures Trading Commission says Wall Street banks are seeking exemptions to the proposed new rules for derivatives that could shield more than half the trades that should be subject to disclosure.

WASHINGTON - The government's top securities regulator called Thursday for Congress to impose new oversight on financial derivatives, warning that allowing risky instruments like credit default swaps to continue unfettered could bring further economic damage.

Another U.S. regulator, Commodity Futures Trading Commission Chairman Gary Gensler, said Wall Street banks are seeking exemptions to the proposed new regulations for derivatives that could shield more than half the trades that should be subject to disclosure.

Gensler criticized Wall Street's stance on proposed oversight for the shadowy $600 trillion market for derivatives - blamed for hastening the 2008 financial crisis.

WASHINGTON - Regulators on Thursday shut down LibertyPointe Bank in New York City, boosting to 27 the number of bank failures in the U.S. so far this year following the 140 brought down in 2009 by mounting loan defaults and the recession.

The bank catered largely to the Orthodox Jewish community in Manhattan and Brooklyn.

Valley National Bank, based in Wayne, N.J., agreed to assume the assets and deposits of LibertyPointe Bank.

WASHINGTON - Regulators have shut down LibertyPointe Bank in New York City, boosting to 27 the number of bank failures in the U.S. so far this year following the 140 brought down in 2009 by mounting loan defaults and the recession.

The Federal Deposit Insurance Corp. on Thursday took over LibertyPointe, with three branches, $209.7 million in assets and $209.5 million in deposits.

Valley National Bank, based in Wayne, N.J., agreed to assume the assets and deposits of the failed bank.

WASHINGTON - The government's top securities regulator called Thursday for Congress to impose new oversight on financial derivatives, warning that allowing risky instruments like credit default swaps to continue unfettered could bring further economic damage.

Another U.S. regulator, Commodity Futures Trading Commission Chairman Gary Gensler, said Wall Street banks are seeking exemptions to the proposed new regulations for derivatives that could shield more than half the trades that should be subject to disclosure.

Gensler criticized Wall Street's stance on proposed oversight for the shadowy $600 trillion market for derivatives - blamed for hastening the 2008 financial crisis.

WASHINGTON - With one eye on the calendar and the other on elusive bipartisanship, Senate Banking Committee Chairman Christopher Dodd plans to offer his own version of a sweeping overhaul of financial regulations without Republican support.

Dodd said Thursday he would release his proposal on Monday and begin the committee's work on the bill the week of March 22.

Four weeks of negotiations between Dodd, D-Conn., and Republican Sen. Bob Corker had closed differences over key provisions, including consumer protections, but details on that and other sticking points remained unsettled.

WASHINGTON _ Long-awaited Senate legislation that would direct the broadest overhaul of financial regulation since the Great Depression will be introduced on Monday without any Republican support, despite weeks of bipartisan negotiations.

Sen. Christopher Dodd, D-Conn., the chairman of the Senate Banking Committee, decided that it's time to introduce the bill and work out its final details as the complex legislation makes its way through the Senate.

Sen. Bob Corker of Tennessee, the Republican who negotiated with Dodd for weeks, said it's "very disappointing" that Dodd decided to proceed before getting a final agreement, which he said had been close.

FROM EUROPEAN VOICEParliament may make radical changes to plans but member states are concerned about lack of control.By Jim BrunsdenThe European Parliament is heading for a clash with EU governments over plans to give supervisory powers over large banks to EU-level authorities and to create a European rescue fund for financial institutions.The European Commission last year proposed a package of reforms in financial supervision, including the creation of three EU-level authorities (a European Banking Authority, a European Insurance and Occupational Pensions Authority, and a European Securities and Markets Authority) with binding powers to settle disputes between national regulators.Finance ministers agreed in December to reduce significantly the powers that would be given to the authorities, compared to the Commission's proposals.

He wants the EBA to be directly responsible for financial institutions of a "European dimension".García-Margallo is also calling for the creation of a European Financial Protection Fund that would bail out large banks in times of crisis.

The fund would be financed primarily by contributions from banks themselves, with standing resources totalling 2.5% of EU gross domestic product (GDP).

FROM THE ECONOMISTThe central bank loses a vice-chairman but starts to regain its standing.THE Federal Reserve, accused by critics of monetary and regulatory malpractice, has seen its standing plummet.

As part of negotiations on a financial-reform bill, Chris Dodd, chairman of the Senate Banking Committee, is considering a proposal that would let the Fed retain most of its regulatory duties.

Mr Dodd originally wanted to take oversight of banks away from the Fed and other regulators and give it to a new body.