GSE-022123
Social Studies
As we noted, FHFA is venturing onto treacherous political ground with a request for input on expanding Fannie and Freddie’s ESG imprint.
21
02, 2023
30
01, 2023
DAILY013023
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.
4
11, 2022
FedFin: 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…
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
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.
21
10, 2022
FedFin on: 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 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
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.
19
10, 2022
DEPOSITINSURANCE115
FDIC Hikes Premiums, Presses Resolvability
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 to advance his campaign against big banks and mergers, calling for an overall review of FDIC premiums to charge the largest banks more and an end to “lax” merger approvals. This report summarizes today’s meeting; in-depth reports on the final rule and ANPR will follow.
18
10, 2022
FedFin on: FDIC Hikes Premiums, Presses Resolvability
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
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.
14
10, 2022
DAILY101422
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.