22 10, 2021

AL102521

2021-10-22T20:48:28+00:00October 22nd, 2021|3- This Week|

New Consumer Cop Takes the Stage

Later this week, CFPB Director Chopra will appear before both the Senate Banking and House Financial Services Committees.  Each will use the newly-confirmed director’s debut as a platform on which to elicit promises for future action or oppose the same on each Member’s priority concerns.  Mr. Chopra may also use his testimony to chart a new course, expanding on initiatives launched by Acting Director Uejio and announcing new rules, policies, and enforcement program no acting official could set fully in motion.  We’ll of course provide clients with in-depth reports on Director Chopra’s testimony and what Congress has to say about it.

AL102521.pdf

22 10, 2021

Daily102221

2021-10-22T20:46:54+00:00October 22nd, 2021|2- Daily Briefing|

BIS Official Presses Climate Risk Go-Slow
In remarks today, Fernando Restoy, head of the BIS’s Financial Stability Institute, reinforced the complexities climate risk presents for financial regulation emphasized also in last night’s FSOC report (see Client Report GREEN11).

Agencies Announce Anti-Redlining Priorities, Target Nonbank Lenders
In concert with a landmark anti-redlining enforcement action, the Department of Justice today announced a new anti-redlining initiative. This will not only prioritize cases such as the one settled with Trustmark National Bank, but also pursue redlining at nonbank mortgage lenders.

Senior Republicans Slam Postal-Banking Pilot, Postmaster General
HFSC Ranking Member McHenry (R-NC) and Oversight Ranking Member Comer (R-KY) today blasted USPS’s postal banking pilot, accusing the Postal Service of implementing the pilot “in secret” and without Congressional notification.

Daily102221.pdf

22 10, 2021

GREEN11

2021-10-22T15:26:45+00:00October 22nd, 2021|5- Client Report|

FSOC Treads Cautious Middle Path on Climate-Risk Action

As we noted yesterday, the Financial Stability Oversight Council has now complied with President Biden’s executive order (see FSM Report GREEN8), compiling an exhaustive assessment of the financial-stability implications of climate risk and what might best be done about it.  Other than administrative action in areas such as procurement, the Biden order actually mandated little specific action, a stance dictated not only by the independent charters of key financial agencies, but also Treasury’s hesitancy to press near-term stress tests, capital buffers, or other hard-wire interventions.

GREEN11.pdf

21 10, 2021

Daily102121

2021-10-22T12:38:58+00:00October 21st, 2021|2- Daily Briefing|

BIS Advances Push for Central Bank Green Investment
The BIS today announced a new program channeling central-bank funds to green bonds in the Asia-Pacific region. Eligible bonds will be issued by sovereigns, supranational, and corporates that comply with relevant anti-greenwashing standards. While limited, this program adds to growing global pressure for “green” central-bank investments, advancing an initial design for doing so in a 2020 BIS policy paper on green finance, supervision, and regulation (see Client Report GREEN).

CFPB Plows New Path into Bigtech, Competition Policy
With a newly-confirmed director with long experience battling bigtech, the CFPB today issued orders requiring large tech companies operating payments systems to turn over information on their payments products, business plans, and practices. Orders have initially been sent to Amazon, Apple, Facebook, Google, PayPal, and Square, but the Bureau is also studying Alipay and WeChat Pay.

Fed Hops To After Latest Ethics Revelation
Following a still more embarrassing story about Fed trading in today’s New York Times, the FRB this afternoon announced conclusion of a “comprehensive review” and new senior-officer trading restrictions. These bar holding individual securities, restrict active trading, and increase reporting requirements.

FSOC Adopts Tough-Talk, Cautious-Action Climate Plan
FSOC today approved the report on climate-related financial risk required by President Biden’s Executive Order (see FSM Report GREEN8) adopting the cautious, disclosure-focused framework we anticipated when the executive order was issued.

Daily102121.pdf

20 10, 2021

Daily102021

2021-10-20T20:53:23+00:00October 20th, 2021|2- Daily Briefing|

Senate Dems Demand Facebook End Crypto Projects
Five Senate Democrats including Banking Chairman Brown (D-OH) late yesterday demanded that Facebook terminate its cryptocurrency (Diem) and digital wallet (Novi) projects, citing CEO Mark Zuckerberg’s 2019 HFSC testimony (see Client Report CRYPTO12) pledging not to launch financial products such as these without U.S. regulatory approval.

Banking Agencies, CFPB Do What They Can to Accelerate LIBOR Transition
Today, the Federal banking agencies and the CFPB, NCUA, and state regulators issued guidance yet again emphasizing their LIBOR transition expectations. This follows an OCC self-assessment tool to gauge transition readiness earlier this week and emphatic statements from the other agencies.

Daily102021.pdf

20 10, 2021

FedFin on: Global CBDC Policy

2021-10-20T17:20:02+00:00October 20th, 2021|The Vault|

Shortly after the BIS and a group of central banks endorsed a construct for retail-facing central-bank digital currency (CBDC), the Group of Seven (G7) finance ministerial issued these public-policy principles to establish a still broader framework for future action.  No G7 nation, including the U.S., has decided on CBDC, but their governments have generally developed these documents to ready themselves, enhance the odds of CBDC better suited to cross-border clearing and settlement, anticipate private stablecoins and the risks they raise, as well as counter China’s efforts to build a CBDC that enhances its global macroeconomic might.

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

20 10, 2021

CBDC9

2021-10-20T17:18:54+00:00October 20th, 2021|1- Financial Services Management|

Global CBDC Policy

Shortly after the BIS and a group of central banks endorsed a construct for retail-facing central-bank digital currency (CBDC), the Group of Seven (G7) finance ministerial issued these public-policy principles to establish a still broader framework for future action.  No G7 nation, including the U.S., has decided on CBDC, but their governments have generally developed these documents to ready themselves, enhance the odds of CBDC better suited to cross-border clearing and settlement, anticipate private stablecoins and the risks they raise, as well as counter China’s efforts to build a CBDC that enhances its global macroeconomic might.

CBDC9.pdf

20 10, 2021

FedFin is looking to hire new policy research assistants

2021-10-20T17:24:57+00:00October 20th, 2021|The Vault|

Policy Research Assistant:   Detail-oriented self-starter for our bank regulatory and legislative analytical services.  Candidates should be able to utilize quantitative and qualitative research methods and analytical skills to assist senior staff in preparing both high-level and in-depth reports assessing regulatory, legislative, and political developments across a wide range of banking and financial services issues.  A college degree is required, and candidates must have excellent writing and analytical skills as well as the ability to work in a fast-paced environment.

Responsibilities

  • Track financial services policy developments in Congress and at relevant Federal regulatory agencies
  • Assist in preparation of client-facing analyses, reports, and papers assessing regulatory and legislative developments and associated impacts
  • Monitor Congressional hearings and Agency meetings and prepare reports summarizing these
  • Gather and analyze data from public sources
  • Conduct literature/document reviews and present findings to senior staff
  • Assist in preparation of Managing Partner’s articles and op-eds published in major outlets (e.g., New York Times, Wall Street Journal, Financial Times)
  • Perform other duties as assigned

Requirements

  • Bachelor’s degree in a relevant field of study (e.g., finance, economics, political science)
  • Excellent writing and communications skills
  • Advanced qualitative and quantitative data analysis abilities
  • Ability to perform under pressure, meet time-sensitive deadlines, prioritize, and multi-task
  • Knowledge of Congressional/regulatory processes and procedure
  • Strong research skills and attention to detail
  • Proficiency with Microsoft Office products, particularly Word, Excel, and Outlook
  • Previous Capitol Hill, banking agency, or similar experience preferred

Please e-mail resume and salary requirements to info@fedfin.com

19 10, 2021

Daily101921

2021-10-19T21:16:33+00:00October 19th, 2021|2- Daily Briefing|

Global Central Bankers Tread Wary Path to Green Scenario Analysis

The central-bank group focused on climate risk, the Network for Greening the Financial System (NGFS), today issued its latest assessment of financial scenario-analytic approaches.  This will guide the FRB as it advances the big-bank supervisory guidance Gov. Brainard recently signaled, but also reinforce those in the U.S. and elsewhere who fear that climate-risk scenarios need additional development before clear conclusions may be drawn from their results.  The type of binding stress tests sought by Democrats (see FSM Report GREEN9) are also a long way off.

FRB-NY Analysis:  BHC Exposure to Open-End MMFs Warrants Supervisory Attention

A new blog post from the Federal Reserve Bank of New York tackles an issue left hanging in the FSB’s new MMF-reform options (see FSM Report MMF18): the fire-sale risk posed by open-end funds.  Reiterating that open-end MMF spillover risk has increased due to their growth and correlation, new quantification shows a six-fold increase in risk to U.S. BHCs since 1996.

Daily101921.pdf

19 10, 2021

SANCTION15

2021-10-19T21:14:14+00:00October 19th, 2021|5- Client Report|

Banking Dems, GOP Demand More, Tougher Sanctions

Today’s Senate Banking hearing with Treasury Deputy Secretary Wally Adeyemo showed bipartisan concern that the Administration is failing to implement sanctions required by law, especially when it comes to China, North Korea, and Russia.  Senators also stated that they will not tolerate what they call continued defiance of Congressional mandates without making clear what they intend to do to enforce their will should Treasury fail to act.

SANCTION15.pdf

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