14 01, 2022

Al011422

2022-01-14T21:46:49+00:00January 14th, 2022|3- This Week|

Filling Out the Fed

Last week was an eventful week for the Federal Reserve, not only due to critical appointments and confirmations, but also because the latest round of inflation data has made the central bank’s forecasting skills seem still less prescient and its power to determine the macro economy even more precarious.  As we noted in our reports (see below), Senate Republicans appear ready to let Mr. Powell off the hook, doubtless because they view him as the least objectionable option from their perspective than anyone else President Biden might nominate.  Instead, they have targeted Lael Brainard’s vice-chair nomination as the one on which they’ll take an anti-inflation stand.  For good measure, Republicans are also and more quietly signaling to the Fed that, if they’re unhappy with either monetary or regulatory policy, they will stop just talking about Fed independence and start taking it away.

Al011422.pdf

14 01, 2022

FedFin: If At First You Don’t Succeed….

2022-01-14T16:14:49+00:00January 14th, 2022|The Vault|

As noted in our in-depth analysis of Acting FHFA Director Thompson’s confirmation hearing, it’s clear that Democrats and Republicans are thinking hard about resurrecting statutory changes to the GSEs’ charters.  They are, though, about as far apart as usual on the constructs they prefer, ….

The full report is available to subscription clients. To find out how you can sign up for the service, click here.

 …

14 01, 2022

GSE-011422

2022-01-14T16:13:43+00:00January 14th, 2022|4- GSE Activity Report|

If At First You Don’t Succeed….

As noted in our in-depth analysis of Acting FHFA Director Thompson’s confirmation hearing, it’s clear that Democrats and Republicans are thinking hard about resurrecting statutory changes to the GSEs’ charters.  They are, though, about as far apart as usual on the constructs they prefer, making the extent to which an already stressed and fractious Senate could turn to the hard bargaining needed to end the GSES’ conservatorships before FHFA is good and ready.

GSE-011422.pdf

13 01, 2022

Daily011322

2022-01-13T22:20:08+00:00January 13th, 2022|2- Daily Briefing|

CBDC Said to Conquer Another Operational Hurdle
he BIS and Swiss National Bank today announced that “Project Helvetia” – their CBDC pilot – has so successfully handled an array of transactions as to prove that DLT can be successfully adopted across traditional financial products and services.

Dems Demand Still-Tougher CFPB Small-Business Anti-Discrimination Data
Senate Banking Chairman Brown (D-OH), Small Business Committee Chair Cardin (D-MD), and other senior Democrats today filed a formal comment calling on the CFPB to advance its controversial small-business reporting proposal (see FSM Report LENDING10).

Hsu Reiterates Case for Bank-Like Crypto Regs
Acting Comptroller Hsu today elaborated on the risks U.S. regulators have identified for crypto assets, reiterating the need to apply bank regulation to stablecoin issuers (see Client Report CRYPTO16).

Daily011322.pdf

13 01, 2022

FEDERALRESERVE68

2022-01-13T22:17:00+00:00January 13th, 2022|5- Client Report|

Brainard Navigates Troubled Waters; Looks Like Smooth Sailing for Thompson

At today’s confirmation hearing, Gov. Brainard took a lot of the heat on inflation Republicans only mildly mentioned during Mr. Powell’s Tuesday confirmation hearing (see Client Report FEDERALRESERVE67).  As we anticipated (see Client Report FEDERALRESERVE66) this reflects the fact that the GOP is united in opposition to her appointment as Fed vice chair; should she hold Sen. Manchin (D-WV) she will be confirmed; if not, perhaps not.  Ranking Member Toomey (R-PA) also used the occasion to signal – again unsurprisingly – GOP opposition should Sarah Bloom Raskin be nominated as the Fed’s supervisory vice chair.

FEDERALRESERVE68.pdf

13 01, 2022

FedFin on: Brainard Navigates Troubled Waters; Looks Like Smooth Sailing for Thompson

2022-01-14T16:16:40+00:00January 13th, 2022|The Vault|

At today’s confirmation hearing, Gov. Brainard took a lot of the heat on inflation Republicans only mildly mentioned during Mr. Powell’s Tuesday confirmation hearing (see Client Report FEDERALRESERVE67). As we anticipated (see Client Report FEDERALRESERVE66) this reflects the fact that the GOP is united in opposition to her appointment as Fed vice chair; should she hold Sen. Manchin (D-WV) she will be confirmed; if not, perhaps not. Ranking Member Toomey (R-PA) also used the occasion to signal – again unsurprisingly – GOP opposition should Sarah Bloom Raskin be nominated….

The full report is available to retainer clients. To find out how you can sign up for the service, click here.…

12 01, 2022

Daily011222

2022-01-12T22:20:27+00:00January 12th, 2022|2- Daily Briefing|

Ag Committees Enter Crypto Fray

Flexing their jurisdictional muscle, the bipartisan leadership of the House and Senate Agriculture Committees today sent a letter to the CFTC urging it to govern cryptoassets which, they say, are commodities.

CFPB UPs the Ante for Its Anti-BNPL Inquiry

The CFPB today broadened its market-monitoring demand of buy-now-pay-later (BNPL) providers into a general request for public comment.  Focusing in particular on consumers and international agencies, the Bureau seeks views on matters such as risks and benefits, merchant experience, and ways to improve the sector.

Daily011222.pdf

12 01, 2022

FedFin Forecast: Prudential Regulatory Framework Set for Structural Change Largely Built on Current Standards

2022-01-14T16:21:13+00:00January 12th, 2022|The Vault|

As promised, FedFin begins our 2022 forecasts with this in-depth report on bank regulation. In general, we conclude that the context of decisions in 2022 and beyond will shift from a focus on tailoring efficiencies and burden relief to one emphasizing risk mitigation, fairness, equity, and — for the very biggest banks — a smaller systemic footprint. This report looks at the impact of pending personnel decisions as well as the outlook for climate-risk, new capital rules, FBO standards, and other key issues….

The full report is available to retainer clients. To find out how you can sign up for the service, click here.…

12 01, 2022

REFORM211

2022-01-12T16:12:09+00:00January 12th, 2022|5- Client Report|

FedFin Forecast: Prudential Regulatory Framework Set for Structural Change Largely Built on Current Standards

As promised, FedFin begins our 2022 forecasts with this in-depth report on bank regulation.  In general, we conclude that the context of decisions in 2022 and beyond will shift from a focus on tailoring efficiencies and burden relief to one emphasizing risk mitigation, fairness, equity, and — for the very biggest banks — a smaller systemic footprint.  This report looks at the impact of pending personnel decisions as well as the outlook for climate-risk, new capital rules, FBO standards, and other key issues.  The only rule we think might get a near-term substantive rewrite is the stress capital buffer (see FSM Report CAPITAL225) via tougher CCAR standards and a reversal of the prior decision to end qualitative objections.  The odds of a leverage rewrite are smaller, but not negligible.

REFORM211.pdf

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