Global Regulators Tackle Key CCP-Resilience Challenge
Addressing ongoing concerns about CCP resilience when members default, the CPMI and IOSCO today consulted on CCP access and client-position portability, seeking views on new access models allowing clients direct access to CCP services and the effectiveness of porting practices. No new policy is proposed, with the discussion paper instead weighing benefits and risks to CCP access-and-portability options.

FRB-NY: Disasters Don’t Damage Bank Resilience
Although the Wall Street Journal today editorialized that a new FRB-NY paper absolves banks of climate risk, the actual paper does not do so. Instead, it concludes that one facet of climate risk – disaster-related physical damage to a bank or its customers – has not proved problematic since 1998. The paper looks at floods, fires, and similar events large enough to trigger a federal disaster declaration, concluding also that bank resilience appears to reflect both bank and market resilience, not resulting federal aid or intervention.

Powell Prepares for Confirmation-Focused Questioning
We will provide clients with in-depth reports as Chairman Powell testifies before Congress tomorrow and then again on Wednesday, but the testimony filed this afternoon makes it clear that Mr. Powell expects tough going as he prepares for confirmation.