Regulator: Banks falling short

Investor's Business Daily

Joseph Smith, the regulator who oversees the $26 bil settlement, agreed to in '12 by 5 large U.S. mortgage lenders and federal and state govt's over lending abuses, said they aren't meeting terms. Smith said he's negotiating tougher test terms with Bank of America (BAC), JPMorgan Chase (JPM), Citigroup (C)and Wells Fargo (WFC). The 5th lender is GMAC ResCap, which says it has effectively exited the mortgage lending market. BofA shares fell 0.6%, JPMorgan fell 1%, Citi fell 1% and Wells Fargo fell 0.4%.

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