Beneficial Ownership Standards Released at Long Last

After a long delay and Congressional demands, FinCEN finalized its beneficial ownership rule today, mandating both domestic and foreign firms doing business in the US to report any individuals with substantial control or ownership interests.

Climate Scenario Analyses Begin

As initially promised by Chairman Powell (see Client Report FEDERALRESERVE67 and Michael Barr, the FRB today announced that it will pilot climate scenario analysis exercises involving Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo.  The pilot, which will begin early next year and conclude in late 2023, will require the banks to analyze the impact of certain climate-related stress scenarios on their portfolios.

FSB Continues to Review Climate Financial Stability Risks

In a speech today, FSB Chair Klaas Knot reiterated key needs in addressing climate-related financial stability risks.  These needs include filling gaps in climate data, integrating climate risk into broader financial stability surveillance, and assessing whether a dedicated macroprudential policy approach is appropriate.

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