Coming Shortly To A Financial Institution Near You
In the vacuum caused by the contentious White House transition and Senate-control stand-off, regulators will set the near-term agenda and, given the inevitability of a Biden White House, outgoing officials will do what they can while they can to stamp an irrevocable legacy on their agencies and the companies they govern.  At the same time, the raging pandemic makes still more dire many of the risks detailed in the Fed’s latest financial-stability report.  As our analysis (see Client Report SYSTEMIC89) noted, the Fed thinks that disaster in March was averted only by all of the facilities it and, later, Treasury, rushed into the yawning breach.  Many thus found it reassuring that FRB Vice Chairman Quarles assured the House Financial Services Committee (see Client Report RESCUE78) that the Board has the authority to use its facilities after their scheduled year-end expiration date, reading the CARES Act (see FSM Report RESCUE72) to allow it also to use the hundreds of billions of funds so far left untouched.

AL111620.pdf