CFPB Reaches Massive, Policy-Setting WFC Agreement
The CFPB today reached a landmark and perhaps even unprecedented $3.7 billion settlement with Wells Fargo on an array of “surprise-fee” and bad-practice allegations. Because of the scope of this action and Director Chopra’s plans to use it as grounds for still greater penalties against WFC, we will shortly provide clients with an in-depth analysis of its policy and strategic implications.
Despite Fears, FSB Finds NBFIs Sound In 2021
Although the FSB’s most recent NBFI report (see Client Report NBFI2) and FSOC’s new annual update (see Client Report FSOC28) cite investment funds as a significant concern, FSB’s latest NBFI 2021 monitoring report concludes that most balance-sheet risk measures remained stable. It does note that collective investment vehicles – a category that subsumes MMFs and other funds – experienced the largest growth in the report’s “narrow measure” and continued to have elevated levels of credit intermediation and liquidity and maturity transformation.