2023-01-13T16:39:53-05:00January 13th, 2023|2- Daily Briefing|

Another GSE Comes Under a Regulatory-Capital Rewrite

A little-noticed GSE – Farmer Mac – has long been criticized by agricultural lenders for reducing competition in this critical sector based in part on unduly-advantageous capital rules.  Now, the Farm Credit Administration – the GSE’s regulator – has issued an advance notice of proposed rulemaking to  consider whether and how to align Farmer Mac’s capital more closely to the Basel banking standards.

Fed Records Expected Loss Congress Will Assess

The Fed today released its preliminary 2022 income and expense data, detailing $18.8 billion in deferred assets following its suspension of Treasury remittances. It also reports an increase in total interest expense from $5.7 billion in 2021 to $96.6 billion in 2022, $55.1 billion of which was due to depository institutions and $41.5 billion related to the ONRPP.