Banking/Financial Institutions

Senate Banking Committee Chairman Tim Johnson plans to invite JPMorgan Chief Executive Jamie Dimon to testify June 7.

One of Rep. Ron Paul's (R-Texas) pet issues will hit the spotlight this July, as House Republican leaders plan to hold a vote on authorizing a top-to-bottom audit of the Federal Reserve.

In a memo to Republican members sent Friday, House Majority Leader Eric Cantor (R-Va.) unveiled the GOP majority's plan for the months leading up to the fall elections. Among a "busy legislative agenda," including bills tackling healthcare, domestic energy production and taxes, Paul's 300-word measure has carved out a spot on the docket.

The nation's banks posted climbing profits in the beginning of 2012, reaping $35.3 billion in the first quarter of the year as the industry continues to move on from the financial crisis.

While JPMorgan's multibillion losses on a single trade have grabbed headlines in recent weeks, the banking industry as a whole continues to regain its footing, posting steadily climbing profits. However, those growing profits are not necessarily being turned into additional lending.

That amount is $6.6 billion more than the profits recorded at the same time in 2011, and marks the eleventh consecutive quarter that banks increased profits year over year, according to the Federal Deposit Insurance Corporation (FDIC). However, while banks might be making more, the total amount they are lending actually dropped at the start of 2012, falling 0.8 percent — or $56 billion — after posting three straight quarters of increased lending.

The razzle-dazzle of Facebook’s $104 billion market debut has turned into a nightmare of congressional inquiries.

Both the Senate Banking Committee and House Financial Services Committee are looking at the issue.

Record-low mortgage rates spurred the third straight increase in refinance applications last week as the housing finance market starts to rebound. 

Overall, mortgage applications increased 3.8 percent for the week that ended May 18, while the refinancing index climbed 5.6 percent to the highest level since Feb. 10, according to the Mortgage Bankers Association's (MBA) weekly survey released Wednesday. 

The seasonally adjusted purchase index decreased 3 percent from a week earlier to its lowest level since April 20. 

"Continuing negative developments in the sovereign debt crisis in Europe — particularly in Greece and Spain, as well as the recent French elections, which have shifted political power in a manner that will likely show less support for European austerity — helped push the 10-year Treasury yield below 1.7 percent last week," said Michael Fratantoni, MBA's vice president of research and economics.  

Facebook is causing some to question the IPO process.

Greek businesses worry about a potential drachma return.

European banks also not ready.

Germany draws line in sand in advance of European meeting.

Stock futures fall after CBO drops the "r" word.

The Consumer Financial Protection Bureau (CFPB) is planning a long, hard look at a growing sector of the consumer market: prepaid debit cards.

The consumer agency announced Wednesday that it was launching a new initiative exploring the pros and cons of prepaid cards, including ways to make fees more transparent and offer better cardholder protection.

“The people who use prepaid cards are, in many instances, the most vulnerable among us,” said CFPB Director Richard Cordray. “All consumers need, and deserve, products which are safe and whose costs and risks are clear upfront. Yet right now prepaid cards have far fewer regulatory protections than bank accounts or debit or credit cards.

A trio of Senate lawmakers is using the "reckless billion-dollar bets" at JPMorgan Chase to push an effort to keep bank executives from having a say at the Federal Reserve.

Sens. Bernie Sanders (I-Vt.), Barbara Boxer (D-Calif.) and Mark Begich (D-Alaska) are pushing legislation that would prohibit bank employees or individuals invested in banks from advising Fed banks, tying that effort to the recent multibillion-dollar losses suffered by the nation's largest bank.

"Our friend at JPMorgan Chase has given us an example of why we need these reforms," said Sanders Tuesday. "The latest escapade … will make our case that much clearer."

Federal regulators are investigating JPMorgan to ensure the bank did not mislead investors before a multibillion-dollar trading loss.