Continuing Acting Comptroller Brooks’ efforts to enhance innovation at national banks and federal savings associations, the agency has now authorized these institutions to hold reserves associated with certain stablecoin offerings. This reflects a general trend in recent OCC actions allowing national banks and federal thrifts to engage in novel activities in which funds placed with the bank or an affiliate might not be intermediated as is the case in traditional [...]

Following its morning meeting, FSOC late Friday released the staff statement expressing its near-term decision on systemic risk in the secondary mortgage market. Although the Council decided against designating Fannie and Freddie or market practices, this is conditional – FHFA’s capital rules must stay tough and come with new prudential standards or the Council will start designating. Given current political realities, this may prove a hollow threat, but we think [...]

On Wednesday, Democrats on the House Select Subcommittee on the Coronavirus lambasted the Fed’s Secondary Market Corporate Credit Facility for buying bonds issued by companies that sinned by way of laying off workers, paying dividends, violating the law, and/or being known to associate with fossil fuels.  Chairman Powell vainly defended the facility, countering at various times that it never lent anyone any money, that it only bought pre-existing bonds, that [...]