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The article reports that data from the U.S. Federal Deposit Insurance Corp. (FDIC) show lending by U.S. banks during 2009 fell at its swiftest rate since 1942. In addition, FDIC figures indicate over 700 banks are at risk of failing, the most in 16 years. Although the U.S. Congress has urged banks to lend more, the banks say their regulators keep telling them to exercise prudence in making loans.

The article discusses the impact on banks of a steepening yield curve in the U.S.. Ordinarily banks find it profitable to borrow at low, short-term rates and lend at higher, long-term ones. However, a lack of credit-worthy firms eager to borrow funds has restricted the ability of banks to take advantage of the situation.

The article discusses commentary from John Stumpf, chief executive of Wells Fargo & Co. Stumpf indicated that losses associated with his firm's acquisition of Wachovia Corp. have not deviated far from original projections. He also said the market for providing 30-year fixed mortgages continues to depend heavily on support from the U.S. government.

The article discusses market reaction to stress tests administered to the nation's 19 largest banks by the U.S. government. Shortly after the tests were announced in February, 2009, the Dow Jones Industrial Average hit lows not seen in 11 years. Since then share prices have recovered as investors have come to realize none of the banks being tested would fail.

The article discusses results of a study conducted by the U.S. Federal Reserve that found banks have been raising their standards for loans to both consumers and businesses. The U.S government has provided financial institutions with over $200 billion in an effort to spur the economy through increased lending.

The article discusses growing perceptions among investors that U.S. bank regulators are urging certain institutions to reduce dividends and raise capital. Among banks thought to be vulnerable for dividend cuts are Wachovia Corp. and Fifth Third Bancorp. On June 12, 2008 KeyCorp announced it would halve its dividend.

The article reports on higher capital requirements for big U.S. banks wanting to restore the dividends they reduced during the financial crisis being set by regulators as of September 2010.

The article reports on the modest performance of the shares of European banks listed in the U.S. on July 23, 2010 led by Irish and Spanish lenders after a stress test showed that European banks have the capability to withstand worst-case scenarios.

The article reports on the expected decline in returns of U.S. banks that accepted money from the Troubled Asset Relief Program (TARP) in 2010.

The article reports that several banks in the U.S. have decided to ease how much they charge customers on overdraft fees according to data from bank-consulting firm Moebs Services Inc. It notes that overdraft fees are charged by banks to customers who run negative account balances. From the period of 1999 to 2008, prices of overdraft fee increased by 8.3% annually. A new rule that will require banks to get customer consent before charging overdraft fees has been issued by the Federal Reserve.

The article reports on the move of U.S. lawmakers to push through with their plan of implementing broad restrictions on fee policies at banks despite the move of the banking industry to remove restrictions on certain account fees. Some of the banks that will eliminate overdraft fees for customers include Bank of America Corp. and Wells Fargo & Co. Also mentioned is the plan of Representatives Barney Frank and Carolyn Maloney to request that Congress implement the rest of the provisions of the Credit Card Act to December 2009 from February 2010.

The article focuses on small banks that have recruited veteran bankers from larger rivals in the U.S. as of 2009. The implications of the attraction of small-bank employment are cited, one of which is that it stresses the discord at big financial institutions. Also mentioned are smaller banks that have landed talent from big banks, including Pinnacle Financial Partners Inc. based in Nashville, Tennessee. According to Pinnacle chief executive officer (CEO) Terry Turner, the crisis in the industry made it easier to attract recruits.

The article reports on the trend of raising fees charged to customers among banks in the U.S. According to Mike Moebs of Moebs Services Inc., all depositories aim to raise fees as the period of low fees has passed. It notes that such trend depicts how bank executives are pressured to turn in profits amidst bad loans to homeowners and businesses. Several increases in bank fees are cited which include that of the monthly maintenance fee for the MyAccess checking account of Bank of America Corp.

The article discusses quarterly earnings reports for several U.S. banks. Although Wells Fargo & Co. posted a profit, both U.S. Bancorp and SunTrust Banks Inc. reported losses. Loan losses at all three banks increased substantially. Wells Fargo saw its nonperforming loans increase 45% on a sequential basis.

The article reports that the pace of loans going bad at PNC Financial Services Group Inc. and Fifth Third Bancorp has slowed during the second-quarter of 2009. Net income of PNC fell to 207 million U.S. dollars compared with 517 million U.S. dollars during the same quarter in 2008. However, Fifth Third posted a profit of 882 million U.S. dollars or 1.15 dollars per share. PNC chief financial officer (CFO) Richard Johnson said that the company expects its provision for loan losses to remain flat in coming quarters.

The article discusses an apparent lack of concern among investors over the health of large banks in the U.S. Even though both Fifth Third Bancorp and Regions Financial Corp. could be compelled to convert preferred shares held by the U.S. government into common shares, the stock of both banks rose sharply on May 4, 2009.

The article reports that according to analysts and investors, banks with large portfolios of commercial real-estate loans are most likely to find themselves at the center of investigation as a result of the stress tests by federal regulators in the U.S. Jeff Davis of Howe Barnes Hoefer & Arnett Inc. suspects that Regions Financial Corp. and Fifth Third Bancorp. will be told they should raise more capital. Regulators are reportedly expected to force several banks to raise additional capital due to their performance on the government's stress tests.

The article focuses on the stress tests conducted by the U.S. government on financial institutions. A document was released by "The Wall Street Journal" which provided details about the formulas used by regulators to assess loan losses in a worsening economic environment. Each bank is expected to have a buffer of capital above normal limits. Treasury Secretary Timothy Geithner noted that the government would provide as much capital as banks need to continue lending.

This article details the takeover by Bank of America (BofA) of Merrill Lynch after 82% of its shareholders approved the $16.5 billion deal. In the final shareholder meeting of Merrill on December 5, 2008, the shareholders have agreed that there was no better deal than the one offered by BofA. Winthrop Smith, son of one of the founders of Merrill, said that the downfall of Merrill reflects unprincipled leadership and the failure of the board to understand what was happening to the company and its failure to act immediately.

The article reports on the decline in stocks of several U.S. banks due to investors' fear of another round of bank failures. Among these banks include Washington Mutual (WaMu), which shares dropped by 1.72 cent or 35% to $3.23. The changes in share prices of other U.S. companies, including General Motors (GM) and Republic Services, are also mentioned.

The article announces that Citigroup Inc. is planning to lay off an additional 2,000 personnel from its market and banking units. According to people in the know, the planned lay off will include senior investment banking officials. The planned lay off will bring to 6,000 the number of employees affected since the mortgage crisis began in 2007. The number also represents 10% of the market and banking unit's labor force. The lay offs are expected to happen by the end of March 2008.

The article reports on the arrest of Helmut Kiener, founder of investment firm K1 Group in Germany, in relation to a fraud investigation at the company, announced by prosecutors on October 29, 2009. Among the banks being investigated as victims of embezzlement are J.P. Morgan Chase & Co. and Barclays PLC. The estimated losses from the fraud could exceed 200 million U.S. dollars, according to prosecutors. The pretrial detention of Kiener was requested by the office of prosecutor Dietrich Geuder.

The article focuses on issues facing policy makers on how to implement the plan of the U.S. and Western Europe governments to buy stakes in struggling banks. Government officials in Great Britain, Germany, France and the U.S. have either revealed or hinted at plans to provide taxpayer funds into the troubled banks, in exchange for ownership interests in the banks in the form of preferred shares. U.S. Treasury Secretary Henry Paulson and other senior government officials are developing a strategy for potential bank investments.

The article reports that government-sponsored entities Fannie Mae and Freddie Mac are examining delinquent mortgage loans for evidence of lies by borrowers or lenders on loan applications in an effort to force banks to repurchase any flawed loans that they originated. At the end of June, 2010, Freddie had $5.6 billion in repurchase requests outstanding.