#FedAccount – Federal Financial Analytics

7 02, 2022

Al020722

Arezou Rafikian2023-04-05T13:39:49-04:00February 7th, 2022|3- This Week|

SETTING THE STAGE FOR STABLECOINS

The House Financial Services Committee this week will kick off action soon to be echoed by Senate Banking advancing the stablecoin policies set by the President’s Working Group on Financial Markets (see Client Report CRYPTO21). HFSC’s intentions will be announced when majority staff releases its staff memo ahead of the hearing and, as always, we’ll highlight key takeaways. One of them will be the extent to which high-profile legislation floated last week by Rep. Josh Gottheimer (D-NJ) will be baseline text for legislative action. As is often the case, Senate Banking Chairman Brown (D-OH) made it more than clear that he won’t miss Meta’s stablecoin without also saying more about what he’ll do to secure the regulatory outcome he espouses.

Al020722.pdf…

4 02, 2022

Al020722

Arezou Rafikian2023-04-05T13:51:35-04:00February 4th, 2022|3- This Week|

SETTING THE STAGE FOR STABLECOINS

The House Financial Services Committee this week will kick off action soon to be echoed by Senate Banking advancing the stablecoin policies set by the President’s Working Group on Financial Markets (see Client Report CRYPTO21). HFSC’s intentions will be announced when majority staff releases its staff memo ahead of the hearing and, as always, we’ll highlight key takeaways. One of them will be the extent to which high-profile legislation floated last week by Rep. Josh Gottheimer (D-NJ) will be baseline text for legislative action. As is often the case, Senate Banking Chairman Brown (D-OH) made it more than clear that he won’t miss Meta’s stablecoin without also saying more about what he’ll do to secure the regulatory outcome he espouses.

Al020722.pdf…

27 01, 2022

CBDC10

Eliza Allen2023-04-11T16:11:46-04:00January 27th, 2022|1- Financial Services Management|

U.S. Central Bank Digital Currency

Months after initially promising to release a discussion draft on central bank digital currency (CBDC), the Federal Reserve is now seeking comment on whether and how it might create one. Reflecting the hesitancy of several FRB leaders, Chairman Powell included, the draft emphatically states that the Board has made no decision to issue a CBDC and, should it do so, it will seek at least tacit approval from both Congress and whichever Administration is in charge at the time. However, despite this highly-conditional approach, the discussion draft also emphasizes several initial decisions the Fed appears to have made. These would preserve the role of cash and private-sector financial intermediation as well as establish goals for other policy objectives (i.e., privacy protection, illicit-finance prevention, reserve-currency preservation).

CBDC10.pdf…

27 01, 2022

FedFin on: U.S. Central Bank Digital Currency

Arezou Rafikian2023-04-11T16:11:59-04:00January 27th, 2022|The Vault|

Months after initially promising to release a discussion draft on central bank digital currency (CBDC), the Federal Reserve is now seeking comment on whether and how it might create one. Reflecting the hesitancy of several FRB leaders, Chairman Powell included, the draft emphatically states that the Board has made no decision to issue a CBDC and, should it do so, it will seek at least tacit approval from both Congress and whichever Administration is in charge at the time.

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

21 01, 2022

Al012422

Arezou Rafikian-12023-04-21T14:31:22-04:00January 21st, 2022|3- This Week|

From a Distance…

The Federal Reserve’s long-awaited CBDC discussion draft led to remarkable Congressional unanimity on its import because pretty much anyone could read it any way they wanted. The only clear conclusion we noted in our initial assessment is that the Fed is in no hurry to act and, should it ever decide to do so, it will demand heavy cover from Congress and the Administration.

Al012422.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…

19 01, 2022

Daily011922

Arezou Rafikian2023-04-24T13:33:40-04:00January 19th, 2022|2- Daily Briefing|

GOP Signals Congressional CBDC Strategy
Although the bill will not pass in this Congress, we draw client attention to H.R. 6415, legislation just now noted in the Congressional Record to bar the FRB from offering the “FedAccounts” Democrats espouse (see FSM Report CBDC).

OCC Grants Non-Traditional Charter Conditions on BHC Status
After close of business yesterday, the OCC gave conditional approval to SoFi’s acquisition of an insured depository and thus to its charter now as a full-service national bank. The approval signals not only that the OCC will approve acquisitions and continue to charter national banks even in non-traditional cases, but also that the moratorium on crypto charters remains in full force.

Senate Banking Split on Several Key Nominations
The Senate Banking Committee today voted on several key Biden Administration nominees without taking up any of the pending Fed appointments. The narrowness of several votes makes it clear that, as we anticipated (see Client Report FEDERALRESERVE66), controversial appointments such as Sarah Bloom Raskin and Lael Brainard have uncertain futures.

Large Banks Lead on D&I, CFPB Study Finds
The CFPB today released a report analyzing publicly-available FY2020 diversity and inclusion data for depository and nondepository institutions, putting forward a series of best practice recommendations.

Daily011922.pdf…

18 11, 2021

REFORM210

Arezou Rafikian2023-05-25T16:00:56-04:00November 18th, 2021|5- Client Report|

Omarova Nomination Threatened

As expected, today’s hearing with Comptroller-nominee Saule Omarova included an unprecedented amount of fireworks for what is normally a low profile appointment. In this report, we omit analysis of the debate on Ms. Omarova’s origins and alleged Marxism, instead assessing policy issues germane should Ms. Omarova succeed in what seems an increasingly difficult confirmation. Notably, moderate Democrats such as Sens. Tester (D-MT) and Warner (D-VA) were clearly concerned with Ms. Omarova’s opposition to the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), while Republicans lambasted her for previous comments about cutting off credit to the oil and gas industry and proposals they believed would nationalize U.S. banking.

REFORM210.pdf…

18 11, 2021

FedFin on: Omarova Nomination Threatened

Arezou Rafikian2023-05-25T16:01:16-04:00November 18th, 2021|The Vault|

As expected, today’s hearing with Comptroller-nominee Saule Omarova included an unprecedented amount of fireworks for what is normally a low profile appointment. In this report, we omit analysis of the debate on Ms. Omarova’s origins and alleged Marxism, instead assessing policy issues germane should Ms. Omarova succeed in what seems an increasingly difficult confirmation. Notably, moderate Democrats such as Sens. Tester (D-MT) and Warner (D-VA) were clearly concerned with Ms. Omarova’s opposition to the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), while Republicans lambasted her for previous comments about cutting off credit to the oil and gas industry and proposals they believed would nationalize U.S. banking.

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

8 11, 2021

Daily110821

Arezou Rafikian2023-06-01T14:52:06-04:00November 8th, 2021|2- Daily Briefing|

BIS Research Survey Finds Few Structural, Policy Impediments to Fast-Acting CBDC
A new BIS paper assesses CBDC’s impact across the full spectrum of economic activity given the centrality of data, moving the research discussion beyond the “reserves for all” approach (i.e., FedAccounts) on which much public debate focuses. This work thus tackles critical privacy, competition, integrity, and stability issues largely left aside in the BIS’s recent formulation of retail-facing CBDC. Press today indicate that the French have given tentative support to a wholesale-facing CBDC even as they raise the questions this BIS paper seeks to answer.

HFSC Dems Urge LGBTQ+ Financial Guidance
Ahead of its hearing examining financial-inclusion barriers for the LGBTQ+ community, HFSC’s majority staff memo indicates the Diversity and Inclusion Subcommittee will tomorrow debate draft legislation that would require federal financial regulators to issue guidance on LGBTQ+ inclusion.

Inter-Agency Treasury-Market Rewrite Takes Shape
Ahead of a conference next month, the Intra-Agency Working Group on Treasury Market Surveillance today set principles to guide further action to stabilize the U.S. Treasury marketplace.

Hsu Demands Top-Down Climate-Risk Management
Acting Comptroller Hsu today followed up last week’s announcement of near-term OCC climate-risk guidance for big banks with a set of questions he urges directors use to press senior management to action. Noting that directors should challenge any managerial confidence that climate risk is indeed being well addressed, the goal of this inquiry is climate-risk readiness by the end of next year.

Bowman Reiterates Need for Servicer Readiness, Regulation
Fed Gov. Bowman today …