#ANPR – Federal Financial Analytics

28 02, 2024

DAILY022824

Eliza Allen2024-02-29T11:26:05-05:00February 28th, 2024|2- Daily Briefing|

HFSC Dems Press for New Bank-Merger Policy

Although she issued a statement strongly opposed to the CapOne/Discover merger after it was announced, HFSC Ranking Member Waters (D-CA) today led a letter instead focusing on the need for the banking agencies and DOJ to quickly issue updated merger policies.

US Standards Complicate Transborder Personal-Financial Data Flows

The President plans later today to issue an executive order banning the transfer of sensitive data to “countries of concern” and certain persons subject to their jurisdiction.

Fed Worries About Regional-Bank Risk

Anna Kovner, Director of Financial Stability Policy Research at the New York Fed, today outlined four sources of systemic risk that worry the central bank even though the Fed still sees risks as manageable according to the analyses released last October (see Client Report SYSTEMIC97).

Daily022824.pdf…

30 01, 2023

DAILY013023

Eliza Allen2023-01-30T16:59:06-05:00January 30th, 2023|2- Daily Briefing|

FDIC Sets New Comment Deadline For Advertising NPR

The FDIC today extended the comment deadline for its NPR modernizing restrictions on the agency’s official sign and logo, advertising statement, and misrepresentations of deposit insurance coverage by 45 days until April 7.

Banking Agencies Report No Material Differences in Capital, Accounting Rules

Ahead of efforts later this winter to rewrite large-bank capital standards, the banking agencies today submitted their annual report to HFSC and Senate Banking assessing the differences between the agencies’ accounting and capital standards.

HFSC Lays Out Initial Action Plan

HFSC Chairman McHenry (R-NC) is moving forward, today announcing plans for a meeting on Wednesday to set the committees’ rules and near-term oversight priorities.

Controversial CFPB Initiatives Advance

The Federal Register today includes the CFPB’s nonbank enforcement action registry proposal as well as its circular regarding negative option marketing practices.

FHA Expands Loan-Mod Options, Incentives

The FHA today announced it will extend incentive payments to mortgage servicers that complete COVID-Recovery loss-mitigation options, also releasing several other changes to help struggling borrowers avoid foreclosures regardless of the nature of repayment hardship.

Daily013023.pdf…

4 11, 2022

FedFin: Consumer Data Rights

Arezou Rafikian2022-11-04T15:47:45-04:00November 4th, 2022|The Vault|

Beginning a long-awaited rulemaking process on the extent to which consumers have rights to their own data and how these rights may be exercised, the CFPB is seeking views on an array of ideas and questions to guide future action. This outline is essentially an advance notice of proposed rulemaking (ANPR) in which the Bureau outlines its initial thinking on key questions such as the extent to which screen-scraping should be allowed, whether new security standards are needed, and when consumers are at risk…

The full report is available to retainer clients. To find out how you can sign up for the service, click here and here.…

4 11, 2022

DATA3

Arezou Rafikian2022-11-04T10:36:30-04:00November 4th, 2022|1- Financial Services Management|

Consumer Data Rights

Beginning a long-awaited rulemaking process on the extent to which consumers have rights to their own data and how these rights may be exercised, the CFPB is seeking views on an array of ideas and questions to guide future action. This outline is essentially an advance notice of proposed rulemaking (ANPR) in which the Bureau outlines its initial thinking on key questions such as the extent to which screen-scraping should be allowed, whether new security standards are needed, and when consumers are at risk and the rights and remedies they have following a decision to open their personal data to parties other than the entity that holds key accounts.

DATA3.pdf…

21 10, 2022

FedFin on: DSIB-Resolution Requirements

Arezou Rafikian2022-10-21T15:51:53-04:00October 21st, 2022|The Vault|

The FRB and FDIC have moved beyond the resolution-planning requirements mandated in the Dodd-Frank Act then implemented over the years to what could be a new resolution regime for banking organizations considered category II or III companies under the inter-agency tailoring rules. Initially described as guidance when the agencies first announced this initiative, it appears likely that final standards will be more binding, which would almost certainly need to be the case under administrative procedures if the agencies decide not only to revise resolution planning on a sector or bank-by-bank case. This would be particularly likely if ….

The full report is available to retainer clients. To find out how you can sign up for the service, click here and here.…

21 10, 2022

RESOLVE48

Eliza Allen2022-10-21T14:12:50-04:00October 21st, 2022|1- Financial Services Management|

DSIB-Resolution Requirements

The FRB and FDIC have moved beyond the resolution-planning requirements mandated in the Dodd-Frank Act then implemented over the years to what could be a new resolution regime for banking organizations considered category II or III companies under the inter-agency tailoring rules. Initially described as guidance when the agencies first announced this initiative, it appears likely that final standards will be more binding, which would almost certainly need to be the case under administrative procedures if the agencies decide not only to revise resolution planning on a sector or bank-by-bank case. This would be particularly likely if the agencies decide to include them in total loss-absorbency capacity (TLAC) standard for covered banking organizations akin to those now governing GSIBs.

RESOLVE48.pdf…

18 10, 2022

FedFin on: FDIC Hikes Premiums, Presses Resolvability

Arezou Rafikian2022-10-24T11:21:49-04:00October 18th, 2022|The Vault|

The FDIC board today voted 3-0 to increase DIF assessment rates by 2bps, finalizing its proposal (see FSM Report DEPOSITINSURANCE114) and rejecting industry arguments on grounds that a small DIF premium increase now would make a more damaging procyclical assessment increase under adverse economic conditions less likely. Unsurprisingly, the FDIC also joined the Fed in approving the ANPR that bears its name, with Acting Comptroller Hsu praising the ANPR’s balance between protecting financial stability and competition among the largest banks. CFPB Director Chopra used his remarks…

The full report is available to retainer clients. To find out how you can sign up for the service, click here and here.…

14 10, 2022

AL101722

Eliza Allen2022-10-14T17:07:31-04:00October 14th, 2022|3- This Week|

Ouch?

Later this week, the FDIC board will decide whether to hike DIF premiums as proposed earlier this year (see FSM Report DEPOSITINSURANCE114). The banking industry is arrayed against this not only because it’s costly, but also – as our analysis addressed – procyclical. We will provide clients with an in-depth analysis of the final rule along with the meeting, which now also includes a certain vote in favor of FDIC agreement to the ANPR released late last week by the Fed asking an array of questions on large-bank resolvability. We will also provide clients with an in-depth analysis of this ANPR along with the accompanying orders setting new merger policy by way of the Fed and OCC decisions on the USB/MSFG transaction. These actions make it clear that mergers will be approved even in the absence of the formal Fed policy promised by Vice Chairman Barr, but the terms and conditions will be considerably stricter than was the case just a year ago for other super-regional transactions.

Al101722.pdf…

14 10, 2022

DAILY101422

Eliza Allen2022-10-14T17:04:18-04:00October 14th, 2022|2- Daily Briefing|

Along with a Squeaker Merger Approval, Fed/FDIC Begin Work on Large-Bank Resolvability

As anticipated in Karen Petrou’s speech yesterday, the Fed today unanimously approved and the FDIC will shortly do the same on an advance notice of proposed rulemaking re-enforcing large-bank resolvability. That this complex rulemaking will not slow near-term merger decisions was made clear today also by the Fed and OCC decisions to clear USB’s acquisition of MSFG’s California banking organization.

Covid Comm Presses CFPB for Still More Credit-Reporting Reform

The Chairman of the Select Subcommittee on the Coronavirus Crisis, Rep. James Clyburn (D-NC) sent a letter to CFPB Director Chopra requesting that the Bureau investigate the three nationwide consumer reporting agencies (NCRAs) for failing to properly address credit reporting errors. Citing data, the Subcommittee obtained from the NCRAs, Chairman Clyburn alleges that reporting errors occurred far more often than previously thought, that the majority of disputes do not result in consumer relief, and that the NCRAs discarded “tens of millions” of submissions without investigation by claiming they came from unauthorized third-parties.

Waller Dismisses Threat To Reserve Dollar Without A CBDC

In remarks today, FRB Governor Waller reiterated his skepticism of foreign-issued CBDCs and stablecoins, arguing that the underlying reasons for dollar dominance are non-technological and CBDCs will not affect them. He dismisses concerns that foreign CBDCs would undermine dollar dominance because they could neither reduce payment frictions nor prevent illicit finance.

Daily101422.pdf…

5 07, 2022

CREDITCARD35

Eliza Allen2023-01-24T15:45:32-05:00July 5th, 2022|1- Financial Services Management|

Credit-Card Late Fees

Taking the first concrete action following its new policy on “junk fees,” the CFPB has sought public comment on whether and how to govern credit-card late fees and broader practices related to late payments. The ANPR’s focus is directly on inflation adjustments permitted for these fees under current rules, but it notes broader interest in other fees, extending questions to the entire construct of credit-card pricing, profit, services, and fees. The proposal itself indicates no policy direction, but Director Chopra made it clear when this was issued that he believes current late fees are far too high. To the extent this rulemaking reverses current standards, consumers would benefit, but some might become more willing to let bills go unpaid and risks and costs might rise, leading card offerings to become less attractive.

CREDITCARD35.pdf…