#ESG – Page 4 – Federal Financial Analytics

14 03, 2022

DAILY031422

Eliza Allen2023-04-03T15:04:42-04:00March 14th, 2022|2- Daily Briefing|

IOSCO Adds Carbon-Market Review to Work Plan

IOSCO today released a comprehensive sustainability work plan, moving beyond the investor-focused disclosures it previously espoused set for action next week by the SEC. Going forward, global securities regulators have now prioritized reducing greenwashing and encouraging reliable ESG-impact assessment. IOSCO will thus review both the pending IFRS climate- and general-sustainability disclosure requirements and final standards.

Raskin Faces Still Higher Confirmation Odds

Sen. Manchin (D-WV)’s statement today that he will not support Sarah Bloom Raskin makes her path to confirmation difficult, if not impossible. For her appointment as Fed Supervisory Vice Chair to advance, at least one Republican would need to break ranks on the Senate floor even if Ranking Member Toomey (R-PA) is unable to hold his blockade.

Daily031422.pdf…

25 01, 2022

Daily012522

Arezou Rafikian2023-04-12T13:57:13-04:00January 25th, 2022|2- Daily Briefing|

CFPB Takes Bank-Competition Lead
The read-out posted today of the President’s competition-council meeting included a statement that the CFPB is going after “tens of billions” in “junk fees” in “banking, credit cards, and mortgages.” No details are provided, but we believe this statement positions the Bureau’s latest efforts in overdraft fees firmly in the context of “unfair” competition for deposit pricing announced when the Bureau launched this initiative.

Toomey: Fed Nominees Violate Geographic, Professional Diversity Requirements
Continuing to oppose several of President Biden’s Fed nominees, Senate Banking Ranking Member Toomey (R-PA) today argued the nominations fail collectively to meet geographic and professional diversity requirements in law.

Daily012522.pdf…

10 01, 2022

Al011022

Arezou Rafikian2023-04-25T14:02:41-04:00January 10th, 2022|3- This Week|

2022 BUILDING BLOCKS

We hope the holidays gave you a relaxing break no matter your travel and omicron worries. FedFin staff stayed busy because so did federal policy-makers. Actions in the last two weeks or so lay a solid platform for game-changing decisions in 2022 on…

Al011022.pdf…

3 12, 2021

Daily120321

Arezou Rafikian2023-05-23T13:51:13-04:00December 3rd, 2021|2- Daily Briefing|

OCC Presages Additional Climate-Risk Guidance
Although it intends to issue climate-risk guidance for big banks by year-end, the OCC today also solicited academic papers and policy research on climate risk in banking and finance for a June 2022 meeting. The scope of the inquiry suggests that the agency is exploring an array of matters well beyond its near-term guidance that may well cover all federal charters, but timing also suggests that these more sweeping requirements will be considered in the second half of 2022. Submissions are specifically requested on physical and transition risks, climate’s impact on different communities, climate risk modeling and stress testing, and ESG ratings and regulatory reliance; these are due March 11.

Gensler Expands on Crypto Risk, GSE Status
Although Senate Banking Ranking Member Toomey (R-PA) thought his answers inadequate, SEC Chairman Gensler’s response to a series of questions sheds light on the SEC’s continuing plans to cast a wide regulatory and enforcement net over cryptography.

Daily120321.pdf…

10 11, 2021

Daily111021

Arezou Rafikian2023-06-01T14:21:14-04:00November 10th, 2021|2- Daily Briefing|

Agencies End COVID-Related Servicer Flexibility

The Federal banking agencies, CFPB, NCUA, and state financial regulators today rescinded their April, 2020 joint statement providing supervisory and enforcement relief from certain timing requirements under the mortgage servicing rules.

Daily111021.pdf…

2 11, 2021

Daily110221

Arezou Rafikian2023-06-02T12:57:12-04:00November 2nd, 2021|2- Daily Briefing|

Global Regulators Set Anti-Greenwashing Standards
IOSCO’s board today issued a report targeting asset-management greenwashing. With this in hand, we expect the SEC soon to proceed on the like-kind ESG standards Chairman Gensler has prioritized as an action item (see Client Report INVESTOR19).

Gensler Reiterates Wide-Ranging Agenda, Push-Out Plans
As noted yesterday, the President’s Working Group on Financial Markets (PWG) was joined by the OCC and FDIC yesterday issuing a report calling for prompt Congressional action to regulate stablecoins and, even in its absence, also for fast action by federal regulators and the FSOC.

Senate LIBOR Bill Faces Partisan Dispute
Senate Banking’s hearing today on LIBOR transition led to the first public announcement of a Tester-Tillis bill akin to the Sherman measure (see FSM Report LIBOR6) along with a bipartisan consensus on the need for action, if not also on how to act. Chairman Brown (D-OH) said that he supports the as-yet-unintroduced bill, but that it must prevent what he called the willingness of big banks to use benchmarks to their own advantage.

Daily110221.pdf…

22 10, 2021

GREEN11

Arezou Rafikian2023-06-05T15:21:03-04:00October 22nd, 2021|5- Client Report|

FSOC Treads Cautious Middle Path on Climate-Risk Action

As we noted yesterday, the Financial Stability Oversight Council has now complied with President Biden’s executive order (see FSM Report GREEN8), compiling an exhaustive assessment of the financial-stability implications of climate risk and what might best be done about it. Other than administrative action in areas such as procurement, the Biden order actually mandated little specific action, a stance dictated not only by the independent charters of key financial agencies, but also Treasury’s hesitancy to press near-term stress tests, capital buffers, or other hard-wire interventions.

GREEN11.pdf…

5 10, 2021

INVESTOR19

Arezou Rafikian2023-06-28T15:31:00-04:00October 5th, 2021|5- Client Report|

Gensler: SEC Will Not Ban Crypto, Will Treat as Securities

As anticipated, today’s HFSC hearing with SEC Chair Gensler covered the full SEC agenda, although members steered clear of the SEC investigation demanded by Sen. Warren (D-MA) into recent Fed trading. Chair Gensler defended his budget request, citing for example a major increase in IPOs and saying the SEC is a “cop on the beat” ensuring investors are protected. Democrats pushed Mr. Gensler to take more action on crypto while Republicans argued crypto is not a security; Chair Gensler was consistent throughout the hearing in his belief that the law is clear on what is a security, but noted also it may be outdated in some areas and thus urged Congress to update the law if it sees appropriate. Like Fed Chair Powell (see Client Report REFORM209), Chair Gensler pledged he would not ban crypto.

INVESTOR19.pdf…

5 10, 2021

FedFin: Gensler: SEC Will Not Ban Crypto, Will Treat as Securities

Arezou Rafikian2023-06-28T15:31:17-04:00October 5th, 2021|The Vault|

As anticipated, today’s HFSC hearing with SEC Chair Gensler covered the full SEC agenda, although members steered clear of the SEC investigation demanded by Sen. Warren (D-MA) into recent Fed trading. Chair Gensler defended his budget request, citing for example a major increase in IPOs and saying the SEC is a “cop on the beat” ensuring investors are protected. Democrats pushed Mr. Gensler to take more action on crypto while Republicans argued crypto is not a security; Chair Gensler was consistent throughout the hearing in his belief that the law is clear on what is a security, but noted also it may be outdated in some areas and thus urged Congress to update the law if it sees appropriate. Like Fed Chair Powell (see Client Report REFORM209), Chair Gensler pledged he would not ban crypto.

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

4 10, 2021

Daily100421

Arezou Rafikian2023-06-28T15:36:45-04:00October 4th, 2021|2- Daily Briefing|

Fed Staff Study Ratifies GSIB Scoring; We’re Not So Sure
Late last week, the Fed published a new staff note using a novel approach – high-frequency stock trading – to identify SIFIs. Looking to determine if one firm’s negative stock return creates market-wide contagion risk in a short time period, the study finds that the eight U.S. designated GSIBs demonstrate this systemic market correlation.

USPS Experiments with New Banking Services
Following an American Prospect story today, a number of news sources have confirmed that the U.S. Postal Service has launched a pilot postal-banking proof of concept.

Warren Demands Still More Retribution for Fed Trading Practices
Based in part on news today that Vice Chairman Clarida also engaged in trading some believe has the appearance of impropriety, Sen. Warren (D-MA) has expanded her campaign demanding not just a Federal Reserve inquiry, but now also an SEC investigation.

Fed Plans Single-Day Implementation for ISO 20022 in 2023
The FRB today issued notice that Reserve Banks will adopt the ISO 20022 message format for the Fedwire Funds Service.

Gensler’s Next Grilling
Ahead of its hearing with SEC Chair Gensler tomorrow, HFSC’s majority staff memo indicates that the session will cover the full SEC agenda.

Daily100421.pdf…