Basel Again Contemplates Digitalization

In its first look at technology-enable finance since 2018 (see FSM Report FINTECH18), the Basel Committee today published a report acknowledging that much has happened in areas such as AI, tech platforms, and cloud services since it last looked at digitalization.

SCOTUS Decision re CFPB Also Upholds FDIC, OCC Funding

Although we defer to counsel for interpretation of the Supreme Court’s 7-2 decision today to uphold the CFPB’s funding mechanism, we note its application not only to preserving the Bureau, but also the premium funding mechanism behind the FDIC’s DIF and the OCC’s assessments.

SEC Coming for Bank Investment Funds

SEC Chair Gensler today announced that SEC staff are talking with bank regulators about risks posed by bank trust and retirement-plan collective investment fund offerings, noting that rules governing these funds do not address illiquidity or leverage nor do they provide sufficient investor disclosure or find dependent fund governance.

Senate Strikes Down SEC’s Custody Accounting Bulletin

In a rebuke to the White House and SEC, the Senate today voted 60-38 to approve H.J. Res. 109, the CRA resolution previously approved in the House to revoke the SEC’s Staff Accounting Bulletin 121 requiring balance-sheet recognition of custody assets (see FSM Report CUSTODY5).

FHFA Starts to Rewrite How and Who Home Loans Serve

Building on its FHLB 100 report, the FHFA today advanced codification of a new FHLB mission with a request for public input on how best to do so.

Dems Demand De-Risking Rewrite

Echoing their previous letter to the financial regulators, Sen. Warren (D-MA) and Rep. Omar (D-MN) once again led a group of Democrats yesterday calling for the agencies to take robust action on bank de-risking practices to promote equitable banking access for Muslim Americans and immigrant communities.