FSB Presses NBFI Analysis, Bank Inter-Connectedness
The FSB today updated its late-2020 paper on nonbank financial intermediaries (see Client Report NBFI), largely reiterating the reasons it then said that global regulators need to act without indicating any actual action beyond its recent MMF Principals (see FSM Report MMF18) and work focused on margin calls.

HFSC Dems: BNPL, Other Fintech Products Present Consumer-Protection Risks
Ahead of its Fintech Task Force hearing tomorrow examining buy-now, pay-later and other fintech cash-flow products, HFSC’s majority staff memo indicates Democrats have significant consumer-protection concerns although no immediate solutions to address them.

PWG Slams Stablecoins, Agencies Outline Action Plan
The President’s Working Group today spearheaded an inter-agency report on stablecoins that, as anticipated, takes a very dim view of this form of cryptography outside the regulatory perimeter. As we will detail shortly in an in-depth analysis, the report lays out a litany of systemic, compliance, trading, and consumer concerns, noting in particular key gaps when it comes to the payment system.

Fed Study Shows Macro Impact of Fed Muni Backstop
A new FRB-NY Staff paper looks at the Fed’s municipal-debt backstop, concluding that it served not only as a generic muni-market stabilizer, but also as a credit risk-share facility for low-rated issuers that supported municipal employment at the worst of the crisis.