Divided Fed Advances Climate-Risk Principles
Following the FDIC’s 3-2 vote yesterday to approve final inter-agency climate-risk standards, the FRB late yesterday afternoon released its 5-2 decision to do the same. Chair Powell emphasized as he has frequently before Congress that the guidance focuses only on climate financial risk and is thus fully consistent with the Board’s mandate, a reading of the principles also endorsed by Vice Chair Barr as he described its “narrow” construct.
CFPB Report Seeks to Validate Late-Fee Restrictions
Adding ammunition to the CFPB’s pending late-fee restrictions (see FSM Report CREDITCARD36), the Bureau’s biennial consumer credit card market report today finds that credit card companies in 2022 were significantly more profitable compared to pre-pandemic levels and charged consumers $130 billion in interest and fees.
Sharp Interchange-Fee Reduction Out for Comment
The FRB today voted 6-1 to approve a proposal mandating an approximate thirty percent reduction in debit-card interchange fees from the current cap (see FSM Report INTERCHANGE7). As under current laws and required by the Dodd-Frank Durbin Amendment (see FSM Report CONSUMER14), the new approach would only apply to issuers with over $10 billion in assets.
Senate Banking GOP Raises New CCP Finance Concerns
As the Administration meets with Chinese financial authorities to hammer out ongoing concerns, all Senate Banking Republicans led by Ranking Member Scott (R-SC) today sent a letter to Treasury Secretary Yellen USTR Head Tai raising concerns that the CCP’s expansion into U.S. and global payments markets threatens Americans’ consumer data privacy, violates international trade practices, and undermines U.S. foreign policy.