#Basel end-game

22 03, 2024

DAILY032224

2024-03-22T16:13:11-04:00March 22nd, 2024|2- Daily Briefing|

Banking Agencies Push Back Key Deadline

Easing a bit of burden and doubtless with litigation in mind, the banking agencies today issued an interim final rule extending the applicability date of facility-based assessment areas and public file provisions of the CRA rule from April 1, 2024 to January 1, 2026.  With this change, the manner in which assessment areas are evaluated is aligned to the same deadline.  The IFR also includes non-substantive revisions to the final rule.

HFSC GOP Calls for GAO Interchange Fee Study

Following introduction of HFSC Subcommittee Chair Luetkemeyer’s (R-MO) bill (H.R. 7531) to require the Fed to conduct a qualitative impact study of the interchange fee proposal, he and Subcommittee Chair Barr (R-KY) yesterday sent a letter to the GAO requesting a study of the potential impacts of the proposal (see FSM Report INTERCHANGE12).  The members state that the proposal would cause banks and credit unions to face “material obstacles” to offset the regulatory, anti-fraud, and operating costs for extending banking services to low-balance consumers, with the proposal also raising “unique concerns” because the Fed offers competing payment services.  The members request that the GAO’s analysis examine the rule’s effects on consumer access to checking account services with regards to minimum balance costs, increases in ancillary fee revenue, LMI population access, and the cumulative impacts of agency rules since January 1, 2023 affecting debit accounts.

Barr Concedes Capital Rules Will Change

Ending speculation that Vice Chair Barr will not accede to Chair Powell’s end-game …

19 03, 2024

Daily031924

2024-03-20T11:57:36-04:00March 19th, 2024|2- Daily Briefing|

Progressive Dems Keep Pressure on Powell

 

Ahead of today’s FOMC meeting, progressive Democrats again sent a letter to Chair Powell calling for an interest-rate reduction timeline on grounds that higher-for-longer adversely affects the public good.  Signed by Sens. Warren (D-MA), Sanders (I-VT), and nineteen House Democrats, the letter calls the Fed’s monetary policy “excessively contractionary,” stressing its negative impacts on the housing market and financial stability.

HFSC GOP Takes on GSE Title-Insurance Pilot

Laying pipe before HFSC’s housing hearing tomorrow, Subcommittee Chairs Davidson (R-OH) and Huizenga (R-MI) along with Rep. Garbarino (R-NY) sent a letter to FHFA Director Thompson Friday sharply criticizing her for undue politicization given the President’s recent call for title-insurance reform.  Th

HFSC GOP Takes on GSE Title-Insurance Pilot

Joining attacks against the Basel end-game rules, Republican CFTC Commissioner Mersinger today criticized the proposal for its impact on derivatives markets.  It would, she said, disincentivize banks from offering client-clearing services to derivatives end-users, exacerbate the downward trend in the number of entities offering client clearing services, challenge the portability of customer positions, and increase systemic risk.

KC Fed Study: Vulnerable Crypto Users at Financial Risk

Buttressing calls for cryptoasset standards, the Kansas City Fed today published an article finding that crypto transactors are less financially literate and more risk tolerant compared to nonowners, stressing the importance of improved education regarding cryptoasset risks.  C

HFSC GOP Goes after Climate-Risk Standards

HFSC’s majority staff memo on Thursday’s hearing indicates that the panel of top federal bank supervisors …

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