#deposit insurance – Page 5 – Federal Financial Analytics

17 06, 2022

Al062022

Arezou Rafikian2023-01-26T11:44:59-05:00June 17th, 2022|3- This Week|

Buried loot

Our in-depth analysis of S. 4356 (see FSM Report CRYPTO28) is longer than we like, but that’s because the Lummis-Gillibrand digital-asset bill is a lot more potent than most people think. It’s correct as many commentaries have noted that this bill is crypto heaven and it’s also correct that, in just the few days since the bill was introduced, crypto has met a market comeuppance far costlier than any of the advocates backing the bill ever conceded was in the realm of the possible. However, we went to the trouble of our in-depth analysis because we think many of its provisions are backed by strong political advocates who are only down for a beat or two, not the full count. Also, the more we read the bill, the bigger its ambitions and the stronger the interests behind many often-overlook provisions.

Al062022.pdf…

3 06, 2022

DAILY060322

Eliza Allen2023-02-10T16:02:13-05:00June 3rd, 2022|2- Daily Briefing|

Agency Heads Stress Need for CRA Reform

Acting Comptroller Hsu, Fed Vice Chair Brainard, and Acting FDIC Chairman Gruenberg today took questions on the controversial, far-reaching inter-agency CRA regulatory rewrite (see FSM Report CRA32).

FRB-Cleveland Study: Small-Business Lending Continues Race/Ethnic Disparities

A new paper published by the Federal Reserve Bank of Cleveland finds evidence that race-based lending disparities persisted through the pandemic, concluding that Black business owners in particular struggled to receive loans compared to whites, fintechs have not overcome credit disparities, and minority-owned businesses were less likely to receive the PPP amounts for which they applied.

Waller Seeks Balance in Crypto Rules

FRB Gov. Waller today described the advantages of innovative, unregulated markets such as that created by cryptography at its outset.

FinCEN Takes Baby Step to No-Action Letters

Reflecting demands from Congress in recent AML law (see FSM Report AML133), FinCEN today issued an advance notice of proposed rulemaking outlining how a no-action letter process might work.

Daily060322.pdf…

23 05, 2022

DEPOSITINSURANCE113

Arezou Rafikian2023-02-21T14:05:31-05:00May 23rd, 2022|1- Financial Services Management|

FDIC-Insurance Status Representation

Using a new approach to issuing enforcement edicts – a circular – the CFPB has made use of its controversial decision to bring nonbanks under its ambit to bolster the FDIC’s efforts to enhance consumer understanding of which funds are entrusted to FDIC-insured depositories and which may be at greater risk in other hands. Even inadvertent violations that may suggest FDIC insurance where it does not apply could result in significant legal risk under either federal or state action.

DEPOSITINSURANCE113.pdf …

29 03, 2022

DEFI

Arezou Rafikian2023-03-27T15:45:58-04:00March 29th, 2022|5- Client Report|

Global Securities Regulators Diss DeFi

As promised, this report provides an in-depth analysis of IOSCO’s new paper on decentralized finance, one sure to advance the FSB’s efforts to bring DeFi systems under greater regulatory scrutiny due to the findings we here detail. In the U.S., President Biden’s crypto-focused executive order (see FSM Report CRYPTO26) highlights DeFi’s risk with regard to illicit finance. IOSCO’s work on this report was headed by the SEC, suggesting rapid U.S. action not only on this concern, but also on many other risks by the Commission, as well as the FSOC and other U.S. agencies. IOSCO concerns go well beyond those specific to investors and trading platforms, noting, for example, significant risk posed to retail customers in DeFi lending and payment, settlement, and clearing products. As with the FSB, IOSCO disputes assertions that DeFi is fully decentralized, noting that most of the services delivered via any DLT purporting to be DeFi are analogous to traditional financial products and services (TradFi) other than regulation. The report also details the off-chain activities that result in significant inter-connectedness with TradFi without appropriate controls over possible contagion or even systemic risk.

DEFI.pdf…

29 03, 2022

FedFin: Global Securities Regulators Diss DeFi

Arezou Rafikian2023-03-27T15:46:19-04:00March 29th, 2022|The Vault|

As promised, this report provides an in-depth analysis of IOSCO’s new paper on decentralized finance, one sure to advance the FSB’s efforts to bring DeFi systems under greater regulatory scrutiny due to the findings we here detail. In the U.S., President Biden’s crypto-focused executive order (see FSM Report CRYPTO26) highlights DeFi’s risk with regard to illicit finance. IOSCO’s work on this report was headed by the SEC, suggesting rapid U.S. action not only on this concern, but also on many other risks by the Commission, as well as the FSOC and other U.S. agencies…

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

3 02, 2022

Daily020322

Arezou Rafikian2023-04-05T14:01:47-04:00February 3rd, 2022|2- Daily Briefing|

Fed Study Presages House Two-Tier Stablecoin Standards
A new Federal Reserve staff note recommends a different approach to stablecoin innovation than that proposed by the President’s Working Group on Financial Markets (see Client Report CRYPTO21).

Fed’s Project Hamilton: CBDC Advances Payment Functionality, Outdoes DLT
The Boston Fed and MIT today published findings from Phase 1 of their CBDC research initiative “Project Hamilton,” which has now successfully created a core processing engine for a hypothetical CBDC. Results also demonstrate an array of other CBDC capabilities, a finding sure to factor into the Fed’s thinking about the pace of CBDC implementation once it makes more progress on the basic “what-if” questions in its discussion draft (see FSM Report CBDC10).

McWilliams Outlines How FDIC Insurance Could Cover Stablecoins
Although Jay Powell delivered his all-important annual address atop a virtual Wyoming mountain, the Federal Reserve is nonetheless mired in the Big Muddy.

Daily020322.pdf…

21 01, 2022

Daily012122

Arezou Rafikian-12023-04-24T11:48:51-04:00January 21st, 2022|2- Daily Briefing|

Congressional Leaders See What They Want in CBDC Paper

Following release yesterday of the Fed’s CBDC discussion draft, key policymakers in the House and Senate have now weighed in. Senate Banking Chair Brown (D-OH) said the draft is a good first step, highlighting the potential for CBDC to create a more inclusive banking system and further U.S. economic leadership.

FDIC Finalizes Trust, MSA Deposit-Insurance Simplification
The FDIC today finalized as proposed a rule simplifying deposit-insurance coverage for deposits held in connection with revocable and irrevocable trusts as well as certain MSA deposits.

Daily012122.pdf…

10 01, 2022

Daily011022

Arezou Rafikian2023-04-25T15:42:36-04:00January 10th, 2022|2- Daily Briefing|

FDIC Exempts Some Custody Funding from Brokered Deposits
As promised in its brokered-deposit rule (see FSM Report DEPOSIT INSURANCE111), the FDIC today published a notice expanding deposit-making exceptions to funds received from third-party custodians without discretion over the IDIs into which funds are placed.

FSB Turns to Insurance Resolutions
The FSB today expanded on longstanding efforts to ensure successful insurance-company resolution, issuing papers on resolution funding, and resolution planning.

Warren Stands Firm Against Powell
As anticipated in our in-depth report earlier today (see Client Report FEDERALRESERVE22), Sen. Warren (D-MA) is not letting upon Chairman Powell. Today, she sent a tough letter reiterating demands for an array of information on Fed-officer trading, reiterating also that she wants an SEC investigation.

Daily011022.pdf…