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So far Max Camateros-Mann has created 11 blog entries.
20 05, 2022

CRYPTO27

2022-05-20T13:14:34-04:00May 20th, 2022|1- Financial Services Management|

Federal Stablecoin Standards

Sharp disruptions in cryptoasset markets, and especially those for stablecoins, have energized calls for rapid U.S. statutory and regulatory action along lines initially laid out by the President’s Working Group on Financial Markets (PWG).  The most comprehensive stablecoin legislative proposal so far is the Stablecoin TRUST Act, a discussion draft released by Senate Banking Ranking Member Toomey (R-PA).  Setting the parameters for what Republicans support and thus what might pass the Senate, the draft differs in many ways from the PWG’s approach.

CRYPTO27.PDF

16 05, 2022

GSE-051622

2022-05-16T16:50:44-04:00May 16th, 2022|4- GSE Activity Report|

Minimizing Mortgages, Maximizing Community Service

As we noted last week, the federal banking agencies sighed a mighty sigh and heaved up a massive inter-agency proposal rewriting decades-old standards detailing which activities earn the Community Reinvestment Act (CRA) points essential for any bank’s strategic objectives and national reputation.  As discussed below, the new proposal is lengthy, complex, and in some cases analytically daunting or flat-out confusing.  Still one critical conclusion is clear:  CRA evaluations would switch from the almost monomaniacal focus on mortgages that characterize the rule to a far wider lens encompassing many more community-development, deposit-taking, consumer finance, and small-business activities.

GSE-051622.PDF

12 05, 2022

FSOC27

2022-05-12T17:08:51-04:00May 12th, 2022|5- Client Report|

Demand for Stablecoin Rules, Legislation Ramps Up

With stablecoin markets even more distressed than earlier in the week, today’s HFSC hearing with Secretary Yellen was even more emphatic than senators two days before on the need for action (see Client Report FSOC26).  Chairwoman Waters (D-CA) urged FSOC quickly to implement the key regulatory recommendations in the PWG report (see Client Report CRYPTO16).  Ranking Member McHenry (R-NC) emphasized instead the need for federal legislation to define this new framework but did not clearly object to any regulatory action.  Instead, he and Rep. Torres (D-NY) argued that fully reserved stablecoins do not engage in financial intermediation and, since this makes them different than banks, bank regulation for any such stablecoins would be inappropriate.  Secretary Yellen countered that there are many different types of banks and this business model distinction is thus not grounds for different regulation.  She demurred on the extent to which stablecoins pose systemic risk, but urged rapid action to ensure that this does not prove the case.

FSOC27.PDF

10 05, 2022

FSOC26

2022-05-10T16:45:46-04:00May 10th, 2022|5- Client Report|

Stablecoin Risk Sparks Renewed Legislative Interest

Today’s Senate Banking Committee hearing with Secretary Yellen renewed calls for federal legislation based on recent algo-coin losses and resulting digital-currency market volatility.  Chairman Brown (D-OH) and Ranking Member Toomey (R-PA) each noted the need for digital-asset legislation, with Mr. Toomey eliciting a commitment from Ms. Yellen to work with him to advance a measure, albeit without any specifics.  We will await Thursday’s HSFC hearing before forecasting the prospects for stablecoin legislation in the relatively short time remaining in this session, with this report assessing the details of today’s discussion, as well as the Secretary’s very cautious approach to renewing SIFI designation while under fire from Sen. Warren (D-MA).

FSCO26.PDF

5 05, 2022

CLIMATE13

2022-05-05T11:22:28-04:00May 5th, 2022|1- Financial Services Management|

Global Climate-Risk Disclosures and Standards

The FSB’s report is aimed at establishing global standards that prevent fragmentation along national or regional lines as well as ensuring that regulatory and supervisory actions mitigate climate risk to the greatest extent possible in the face of an array of data and measurement challenges. Although the FSB proposes no specific requirements, its draft recommendations suggest that it will soon press global and national bank, securities, and insurance regulators to adopt macroprudential tools such as scenario analysis and stress testing to capture systemic interconnections primarily of concern at the largest financial institutions.

CLIMATE13.PDF

4 05, 2022

INTERCHANGE9

2022-05-04T16:20:01-04:00May 4th, 2022|5- Client Report|

Swipe-Fee Disclosures, Antitrust Pressure Likely Following Senate Hearing

As anticipated, bankers and card networks squared off with merchants at today’s Senate Judiciary hearing addressing credit-card interchange fees.  Chairman Durbin (D-IL) strongly defended his amendment restricting debit-card fees, arguing that expanding fee constraints and network-competition provisions to credit cards would reduce inflation and increase consumer spending power.  He did not, however, propose legislation to do so, instead pressing for transparency; we expect the CFPB to include a mandate for swipe-fee disclosures in the changes it plans shortly to propose to current card disclosure requirements (see Client Report CONSUMER42).

INTERCHANGE9.PDF

28 04, 2022

CONSUMER42

2022-05-04T16:14:05-04:00April 28th, 2022|5- Client Report|

Chopra Considers Credit-Card Rules, Defends Dormant Authority

Today’s HFSC hearing with CFPB Director Chopra plowed much ground broken yesterday before the Senate Banking Committee (see Client Report CONSUMER40), but several new furrows were also unearthed.  As we noted yesterday, Mr. Chopra indicated that the agency will review rules inherited from the FRB; today, he  signaled that his top priority here may be standards implementing 2009 credit-card reforms (see Client Report CREDITCARD34), a move doubtless fired up by his conclusions that credit-card fees are “junk.”  Democrats strongly supported an array of Bureau actions while Republicans criticized their substance, process, and even inflationary impact.

CONSUMER42.PDF

26 04, 2022

CONSUMER40

2022-04-26T20:33:32-04:00April 26th, 2022|5- Client Report|

Chopra Stands His Ground on Sweeping Agenda, Administrative Process

The Senate Banking Committee’s hearing today with CFPB Director Chopra was a sharply partisan session with little immediate impact on what Mr. Chopra plans to do to achieve his sweeping new vision.  Although the debate will have little to no impact on bank-merger policy, much of the session focused on the actions Mr. Chopra took in concert with Acting Chairman Gruenberg to wrest FDIC control from former Chair McWilliams and issue an RFI suggesting significant changes to both merger analytics and bank-resolution policy (see FSM Report MERGER9).

CONSUMER40.PDF

28 03, 2022

M032822

2022-03-28T13:34:11-04:00March 28th, 2022|6- Client Memo|

Why the Fed Might Bail Out the Commodity Market

In the midst of chaos, volatility always makes matters worse and this is very much the case with the commodities sector. This has led to growing speculation that central banks will step in should unprecedented price swings show signs of systemic impact. As we noted , we don’t know a central banker that wants to bail out commodities. But none of them wanted to bail out anyone else either.

m032822.pdf

22 03, 2022

GSE-032222

2022-03-22T17:57:14-04:00March 22nd, 2022|4- GSE Activity Report|

The Bureau Goes Ballistic 

As detailed in our new in-depth analysis, the CFPB’s exam-manual rewrite dramatically redefines the compliance-, legal-, and reputational-risk terrain for any consumer-financial company and the vendors or counterparties on which it relies.  Importantly, the Bureau’s reach goes beyond ECOA to give examiners the power to sanction any action, policy, procedure, or result that has the appearance of discriminatory impact in pricing, underwriting, credit-enhancing, collecting, servicing, advertising, or otherwise being brave enough to have anything to do with mortgage finance.

GSE-032222.pdf

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