BIS: CCP Collateral Holdings Pose Systemic Risk
A new BIS study looks at the risk that the transformation of OTC markets to centrally-cleared ones has in turn transformed markets based in part on know-your-counterparty into those dependent principally on collateral backing margin positions – an inherently more fragile market structure.
White House Presses FHLB Affordable-Housing Action
In remarks today, National Economic Advisor Lael Brainard not only highlighted the Biden Administration’s actions to address housing affordability, but also mentioned plans for new financing programs.
Ambitious CFPB Regulatory Plans Come Into View
The CFPB’s fall 2023 regulatory agenda provides status updates for several significant rulemaking items.
Basel to Set IRR, Window-Dressing, Crypto Standards
The Basel Committee’s year-end meeting advanced plans to address interest-rate risk (IRR) with a concrete agreement to issue a new consultation later this month updating current global IRR standards (see FSM Report IRR7).
BIS Points to MMF Risk When Rates Rise
Another new BIS paper concludes that the record size of MMFs poses significant threat to dollar-funding market stability.
OCC Warns Banks of AI Risk, Possible Supervisory Action
Reflecting growing Congressional, regulatory, and industry concerns over AI, today’s OCC semiannual risk assessment for federal banks states that national banks should be mindful of AI risks as these fall under current supervisory procedures.
Senate GOP Goes for Gruenberg’s Jugular
Despite efforts by the FDIC to reassure critics about its independent investigation, Senate Banking Republicans today fired off a ferocious letter demanding that FDIC Chair Gruenberg immediately resign and, even if he were to do so (which we doubt he will), answer well over a dozen prosecutorial questions.