GOP Plans Bills to Open Supervisory, Emergency-Liquidity, Systemic Decisions

Although its witness list is preliminary, the majority staff memo on this week’s HFSC Subcommittee hearing makes it clear that the committee is gearing up for legislative action focused on supervision, not regulation.  The Financial Services Subcommittee session will consider the Federal Reserve report on SVB’s failure (see Client Report REFORM221) and that from the FDIC on Signature (see Client Report REFORM222), deferring work on the FDIC’s subsequent report on deposit-insurance reform (see Client Report DEPOSITINSURANCE119).

Fed Announces Secure Supervisory Communication Portal

In a supervisory letter, the FRB announced that it will use the One Agile Supervision Solution (OASiS) application securely to exchange information with supervised institutions, including examination-related documents.

Scott Ramps Up GOP Anti-LLPA Campaign

Following a recent House GOP bill that would block changes to the GSEs’ LLPAs, Senate Banking Ranking Member Scott (R-SC) sent a letter today to FHFA Director Thompson taking issue with the pricing frameworks.  He does so on grounds that they reduce risk-based pricing by altering the relationship of credit risk to credit score and LTV.

Fed Stands by Systemic Resilience Despite Credit Qualms

The FRB’s semiannual financial-stability report today is decidedly more pessimistic than its November predecessor (see Client Report SYSTEMIC94).  Most notably, the report departs from the Fed’s longstanding view about banking-system resilience due to all the post-GFC rules now to say that deposit outflows may lead to depressed credit despite the “decisive” actions taken to stem systemic risk after SVB and SBNY’s failures.