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CFPB Targets Auto Lending for Competition Make-Over

Late yesterday, the CFPB outlined the steps it plans to take to ensure that auto lending is fair and competitive. This initiative mirrors others (see FSM Report CONSUMER38) in which the Bureau seeks to deploy its consumer-protection powers to reshape markets.

Basel Plans Broad Digital, Crypto, Climate Work Plan

The Chair of the Basel Committee, Spain’s Pablo Hernández de Cos today reiterated that Basel now plans to press its final capital changes and work with other regulators to finalize climate risk standards. An array of “deep-dive analyses” are planned on fintech and cryptoassets, publishing initial conclusions on these topics and AI in “coming months.”

Fed Finds Financial Stability Just Fine, But That Was Then

The monetary policy report that Chairman Powell will deliver next week includes a slightly revised discussion of financial stability which does not take current geopolitical hazards into account.

FHFA Eases GSE Capital to Increase CRT

FHFA followed up sweeping action yesterday on mortgage servicers today with a finalized capital rule. As promised, the rule replaces the current fixed leverage ratio with a dynamic one designed to ensure that risk-based capital is the only binding constraint for Fannie Mae and Freddie Mac.

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Daily020822

Arezou Rafikian2023-04-05T11:47:05-04:00February 8th, 2022|2- Daily Briefing|

Fed Study Attempts to Address Scope of U.S. Macroprudential Risk
Building on prior FRB research on the increasingly porous regulatory perimeter, a new FRB staff study crafts quantitative measures of the U.S. financial system to assess growing macroprudential risk. In contrast to the relatively-sanguine view of asset prices in the Fed’s most recent stability report (see Client Report SYSTEMIC92), the study finds that cyclical credit flows into unregulated institutions are a leading indicator of systemic risk.

FRB-NY: Stablecoins Won’t Last
The Federal Reserve Bank of New York yesterday posted a paper concluding that stablecoins are not likely to prove a lasting part of the U.S. financial system. We will shortly provide clients with an in-depth analysis of today’s HFSC hearing; the staff memo preceding it clearly takes a different stand, as did the PWG’s report (see Client Report CRYPTO21).

Democrats Detail Beneficial-Ownership Regulatory Standards
Sen. Brown (D-OH) and Reps. Waters (D-CA) and Maloney (D-NY) late yesterday released their comment letter to Secretary Yellen on FinCEN’s initial beneficial-ownership standards. The letter generally praises the proposal, including its broad beneficial-owner definition and those for “substantial control,” “ownership interest,” and “reporting company.”

Basel Chief Pleads for Tough III/IV Standards
The Basel Committee’s new chair, Pablo Hernández de Cos, today told the European Parliament that jurisdictions must quickly finalize the Basel III/IV package of capital reforms. As noted yesterday, Acting FDIC Chairman Gruenberg included these in his near-term priorities, departing from prior FDIC and Fed statements by …