#DoL – Federal Financial Analytics

10 01, 2024

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Eliza Allen2024-01-10T17:00:41-05:00January 10th, 2024|2- Daily Briefing|

HFSC’s HUD Hearing to Trod Partisan Ground

HFSC’s majority staff memo on Thursday’s hearing with HUD Secretary Fudge makes it still clearer that the session will focus on affordable housing, homelessness, and public-housing agencies in cities such as New York and Washington, D.C.

HFSC GOP Slams DOL Fiduciary Rule

At today’s HFSC Capital Markets Subcommittee hearing on the DOL’s Fiduciary Rule, Subcommittee Chairwoman Wagner (R-MO) argued that the proposal should be withdrawn, calling it a partisan effort to eliminate “junk fees.”

HFSC Takes Partisan Approach to FSOC

At today’s HFSC Digital Assets Subcommittee hearing on FSOC’s systemic-designation framework (see FSM Report SYSTEMIC98), Subcommittee Chairman Hill (R-AR) questioned FSOC’s approach to addressing systemic risk, claiming that the Council’s revised guidance is vulnerable to abuse and unintended consequences.

CFPB Small-Business Reg Survives

Senate Republicans tried today to override the President’s veto of the Congressional Review Act resolution approved by both Houses of Congress to repeal the CFPB’s small-business reporting rule.

Daily011024.pdf…

31 10, 2023

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Eliza Allen2023-10-31T17:02:58-04:00October 31st, 2023|2- Daily Briefing|

HFSC GOP Turns to Merger-Policy Demands

Financial Institutions Subcommittee Chair Barr (R-KY) and Rep. Fitzgerald (R-WI) last night sent the federal banking-agency heads a stiff letter demanding to know when they plan finally to issue the long-promised bank-merger policy following public notice and comment.

China Leads New BIS CBDC Pilot

In a new CBDC project sponsored by the BIS’s Innovation Hub, central banks either directly associated with China or within its ambit will focus on multi-CBDC wholesale cross-border payments.

White House, Labor Turn to Retirement Advice “Junk Fees”

Building on its “junk-fee” initiative, the White House today expanded Obama-era “best-interest” standards to retirement advisers to close what it believes are loopholes in the SEC’s jurisdiction under its broker-dealer best-interest standard.

BIS CPMI: Even Sound Stablecoins May Not Be Worth the Effort

A new report from the BIS Committee on Payments and Market Infrastructures finds that properly designed and regulated stablecoins could improve cross-border payments by increasing speed and transparency while lowering costs, especially in emerging markets and developing economies.

GAO Vacates Key SEC Crypto Ruling

The GAO today released a report finding that the SEC’s staff accounting bulletin (SAB) 121 is a rule subject to the Congressional Review Act, throwing a key Gensler anti-crypto ruling into immediate ineffectiveness and an uncertain future.

Daily103123.pdf…

7 07, 2023

Al070723

Eliza Allen2023-07-07T16:49:21-04:00July 7th, 2023|3- This Week|

The ESG Jihad

As anticipated, House Republicans have made July their “ESG month” with HFSC and other panels planning an array of actions culminating in an HFSC mark-up of as-yet-unintroduced legislation later this month. Before writing this off as part of the GOP’s pre-election “culture-war” campaign, it’s worth remembering that the Democratic-controlled Senate still approved a House measure overturning Department of Labor ESG pension-investment rules; only a Presidential veto saved those rules and it might take more of them to counter what Republicans now have in store for the financial-services sector.

Al071023.pdf…

8 12, 2022

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Eliza Allen2022-12-08T17:14:56-05:00December 8th, 2022|2- Daily Briefing|

Comment Deadline Set For Fed’s Climate-Risk Management Principles

The Federal Register today includes the Fed’s comment request on proposed climate risk-management standards that would guide banking organizations with assets over $100 billion (see FSM Report CLIMATE15).

Basel: Climate Risk Not Ready for Capital Requirements

The Basel Committee today published a clarification by way of FAQs to its recently-finalized climate-risk management principles (see FSM Report CLIMATE14).

Warren, Smith Turn FTX Spotlight on Banking Agencies

As predicted in Karen Petrou’s memo on Monday, Congressional interest has now turned to the role of banks and their regulators in the FTX debacle.

FSB Heightens Focus on CCP, Insurer Resolvability

After over at least a decade of talking about nonbank resolvability, the FSB today announced that addressing it has become an “urgent” priority.

OCC’s Risk Inventory Continues To Target Deposit, Operational, Climate, Crypto Risk

As with its June 23 report on bank risks, the OCC’s December inventory reiterates concerns such as deposit outflow due to rate hikes, operational risks due to cyber-threats and third-party relationships, and compliance and credit risks.

Warren, Smith Back DOL Disqualification Proposal

Tackling yet another “big-bank” concern, Sens. Warren (D-MA) and Smith (D-MN) sent a letter today applauding the Department of Labor’s Employee Benefits Security Administration (EBSA) proposal to disqualify banks found guilty of criminal misconduct from being qualified professional asset managers.

Daily120822.pdf …

14 02, 2022

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Eliza Allen2023-04-04T16:02:06-04:00February 14th, 2022|2- Daily Briefing|

Gensler Stands by Climate-Risk Disclosures
In a Twitter thread this weekend, SEC Chairman Gensler pushed back at Sen. Warren’s (D-MA) criticisms that the Commission is moving too slowly on climate-risk disclosures.

Renew Attack on ERISA Waivers
Joined by Sen. Tina Smith (D-NH), Sen. Warren (D-MA) has renewed a longstanding Democratic demand that the Department of Labor deny ERISA waivers to large banks found to have engaged in illegal or unethical behavior.

SEC Wins a Big One
Making it clear that, despite GOP pushback, the SEC can and will go after crypto products, the Commission today reached a high-profile, multi-million dollar settlement with BlockFi Lending LLC that essentially prohibits its lending products and, by inference, any others unwilling to undergo protracted litigation leading to still more costly sanctions.

Hsu Targets Bank LMI Lending for CRA Push
In remarks today, Acting Comptroller Hsu stated that, while banks have done considerably better by LMI communities in recent years, deep gaps remain that, at least for Black households, may now be worse than ever.

Daily021422.pdf…