Quarles Targets MMFs, Links to Banks as Top Global Concerns
FSB head and Fed Vice Chairman Quarles today reiterated that global regulators intend to address the NBFI risk evidenced at the start of the COVID crisis, when a “dash for cash” precipitated dangerous shocks that propagated through government bond markets.
Controversial U.S. NSFR Advances
Leading the way for inter-agency approval, the FDIC today approved a final NSFR rule that significantly departs from that in the Basel framework (see FSM Report LIQUIDITY18). Reflecting this, Director Gruenberg strongly objected; it remains to be seen if FRB Gov. Brainard does the same.
Brainard Presses CRA’s Housing-Equality Benefits
FRB Governor Brainard today stated that CRA incentives are essential to solving what she expects to be severe housing affordability and availability problems in the wake of the pandemic.
GSE Patch Sticks a Little Longer
The CFPB today finalized its extension of the GSE Patch (see FSM Report MORTGAGE116), extending the January 10 sunset date until the Bureau finalizes the General QM loan definition and it becomes effective.