Banking/Financial Institutions

The two companies would need to take steps to shore up their share prices to meet stock exchange rules.

The Federal Reserve Board approved on Tuesday a final rule to protect credit card users from several types of unreasonable late fees and penalties. 

The changes, which go into effect Aug. 22, prohibit credit card issuers from charging a fee of more than $25 for paying late or for violating an account's terms unless there have been repeated violations or the issuer can show that a higher fee is needed to pay for the costs of those violations. 

"The new rules require that late payment and other penalty fees be assessed in a way that is fairer and generally less costly for consumers," Federal Reserve Governor Elizabeth Duke said in a statement Tuesday.

The House-Senate conference working out the details on financial regulatory reform will focus on derivatives and the proposed consumer protection agency during its second week of meetings.

House Financial Services Committee and conference Chairman Barney Frank (D-Mass.) and Senate Banking Committee Chairman Chris Dodd (D-Conn.) will meet at 11 a.m. this morning, Wednesday and Thursday of this week, according to a release.

On Tuesday's agenda are credit rating agencies, private funds, insurance and the merger of the Office of Thrift Supervision and Office of the Comptroller of the Currency.

Greece's credit rating was downgraded to junk status on Monday as the economically hard-hit country struggles to cut its deficit and pay down its debt. 

Moody's Investors Service cut Greece's government bond ratings by four notches, from A3 to Ba1, with a stable outlook for the next 12 to 18 months. The performance of the Greek economy, specifically gross domestic product and tax revenues, will influence the rating agency's view. 

"Information on these developments will take some time to accumulate and may prove to be either credit positive or negative," Moody's said in a release. 

Sen. Blanche Lincoln is clarifying her controversial effort to restrict banks’ derivatives trading as financial firms ramp up lobbying efforts.

Lincoln Financial Group on Monday announced it will conduct a public offering of equity and debt securities as part of a plan to fully repurchase the $950 million in preferred shares issued to the Treasury under the Department's Capital Purchase Program. 

The offering will consist of $335 million of common stock and up to $750 million of senior notes. 

Rep. Spencer Bachus (R-Ala.) said that he and Republicans feel new Democratic financial regulatory legislation "institutionalizes" future bailouts.

Treasury's sale of 1.5 billion shares of Citigroup stock helped the Department surpass the outstanding balance.

Vice Chairman Donald Kohn said Friday he will delay his departure from the Federal Reserve Board until the end of the summer.

Kohn will remain at the Fed until no later than Sept. 1 to provide the Senate with more time to confirm his replacement to the seven-member board. 

Janet Yellen, president of the San Francisco Federal Reserve Bank, was nominated April 29 by President Barack Obama to take Kohn's spot as a governor. 

In March, Kohn announced his resignation effective June 23 but was asked by Federal Reserve Chairman Ben Bernanke to stay on at the short-staffed agency until Congress can act. 

A new Harris Interactive poll shows strong support (69 percent) for stricter regulations on banks and financial-services firms.

The findings come as Congress looks to complete work on a financial regulation bill by the July 4 recess that is expected to increase regulations on banks and finance firms.