12 09, 2023


2023-09-12T17:19:22-04:00September 12th, 2023|2- Daily Briefing|

GHOS Presses Basel Action on Lessons Learned

Basel’s group of Governors and Heads of Supervision (GHOS) met yesterday, listing strong bank risk management and governance arrangements, effective supervision, and the need for a robust regulatory framework as the primary lessons it learned from this year’s banking turmoil.  GHOS also pressed its members to finalize their Basel III reforms, noting that most plan to implement them by the end of 2024.

Gensler Takes Swing-Pricing, AI Fire

At today’s Senate Banking hearing with SEC Chairman Gensler, Democrats largely defended the pace and scope of recent SEC work while Republicans criticized the agency for rulemakings they said were ideologically driven and inadequately analyzed.  Chairman Brown (D-OH) applauded the SEC’s crypto enforcement actions and encouraged it to examine broker and investment adviser use of AI.  Ranking Member Scott (R-SC) and several other Republicans sharply criticized Mr. Gensler for what they said was his lack of transparency and responsiveness to congressional inquiries.


14 06, 2022


2023-01-27T15:24:46-05:00June 14th, 2022|2- Daily Briefing|

Banks, Asset Managers Come in for New Climate Controversy

In a letter to HSBC CEO Noel Quinn, Sen. Steve Daines (R-MT) sharply criticized the bank’s decision to suspend a top official, Stuart Kirk, for earlier remarks that climate change’s financial risk is being overstated.  The letter raises policy issues as well as political ones because the Senator warned that the decision may violate US law because it may reflect pressure from BlackRock in violation of its passive-asset commitment to avoid controlling-party designation.

Bureau Bashes Big Banks, Wants Better Customer Service

Fulfilling its director’s promises to target big banks (see Client Report CONSUMER40), the CFPB today released an RFI seeking ideas on how big banks can be encouraged or perhaps forced to enhance customer service, an attribute Mr. Chopra conflates with consumer protection in a speech accompanying this action.  The Bureau is concerned that big banks do not provide “high-quality” service and the interactions necessary for the relationship banking deemed important to fair competition, especially in rural areas.

BIS Finds DeFi Increases Financial Risk, Harms Inclusion

In a bulletin today, the BIS highlighted the negative impact that the anonymous nature of DeFi has on financial risk and inclusion.  It finds that overcollateralization is pervasive in DeFi lending because screening of individual borrowers is impossible, but crypto’s volatility means that overcollateralization did not eliminate risk of loss.


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