#Federal Register

30 04, 2024

DAILY043024

2024-04-30T16:56:40-04:00April 30th, 2024|2- Daily Briefing|

Changes to Fed Reporting Requirements Augurs Shift in M&A Policy

The Federal Reserve has proposed two changes to reporting requirements related to merger-and-acquisition transactions.

Basel Rewrites Global CCR Standards

As anticipated, the Basel Committee today issued proposed counterparty credit risk (CCR) standards.

CFPB Price Complexity Study May Presage Action on Credit Cards, Mortgages, Savings Accounts

The CFPB today issued a report finding that increasing price complexity leads to higher transaction and total costs and increased consumer errors, with this not offset by increased competition.

House Oversight Subcommittee Considers CRE Risk

Today’s House Oversight Health Care and Financial Services Subcommittee hearing on commercial real estate focused on preventing systemic risk.  Chair McClain (R-MI) argued that the CRE market is generally strong, encouraging Congress and the Fed to eliminate red tape.

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16 04, 2024

DAILY041624

2024-04-16T17:10:39-04:00April 16th, 2024|2- Daily Briefing|

House GOP Takes on New Merger Guidelines

The House Small Business Committee today sent a GOP letter to the FTC and Justice Department  strongly protesting new merger guidelines (see FSM Report MERGER13) on grounds that they sharply curtail needed small-business capital.

House Hikes Iran Sanctions

Working through a series of sanctions bills in the wake of recent geopolitical developments, the House yesterday voted 294-105 to advance H.R. 5921, a bill introduced by Rep. Huizenga (R-MI) that prohibits Treasury from authorizing transactions by U.S. financial institutions in connection with Iranian imports or exports other than food, medicine, and other humanitarian assistance.

House Passes Bill Targeting China-Iran Petroleum Trade

Continuing its response to recent geopolitical events, the House yesterday voted by a 383-11 margin to pass H.R. 5923, a bill from Reps. Lawler (R-NY) and Gottheimer (D-NJ) that would require the President to periodically determine if any Chinese financial institutions have purchased petroleum or petroleum products from Iran, stating that U.S. financial institutions also may not open or maintain certain accounts with Chinese institutions that have done so.

Warren Again Targets OCC Merger Decisions

Continuing recent attacks on the OCC’s approach to mergers, Sens. Warren (D-MA) and Blumenthal (D-CT) yesterday sent a letter to Acting Comptroller Hsu sharply criticizing the agency’s decision first to allow NYCB to acquire Flagstar bank and then do the same shortly thereafter for Signature.

OCC Toughens LCR, NSFR via New Reporting Requirements

The OCC today sought public comment as required by law for …

30 01, 2024

DAILY013024

2024-01-30T17:13:26-05:00January 30th, 2024|2- Daily Briefing|

FinCEN Estimates High Bank-BOI Reporting Costs

FinCEN via the Federal Register today requested comment on the estimated total annual reporting and recordkeeping burden for new Access Rule beneficial ownership information (BOI) reporting requirements (see FSM Report AML135).

Brown Puts More Pressure on Powell

Following Sen. Warren’s rate-cut demands and affordable housing concerns yesterday, Senate Banking Committee Chairman Brown (D-OH) today sent a letter to FRB Chair Powell also calling for less restrictive monetary policy on grounds that elevated rates negatively impact home affordability, limit the housing supply, restrict small business growth, and dampen wages.

HFSC Targets China Sanctions, Outbound Investments

Today’s HFSC National Security Subcommittee Hearing focused on China sanctions and restrictions on outbound investments.

GOP Demands Retraction of CFPB Tech-Payment Proposal

Reiterating their opposition to the Bureau’s pending digital-payment rule (see FSM Report PAYMENT27), HFSC Chairman McHenry (R-NC) alongside Digital Assets Subcommittee Chairman Hill (R-AR) and Rep. Flood (R-NE) sent a letter today urging the CFPB to reopen and extend the comment period and reconsider finalizing the rule as proposed.

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26 01, 2024

DAILY012624

2024-01-26T16:09:38-05:00January 26th, 2024|2- Daily Briefing|

Agencies Rewrite Call Reports Ahead of Final Capital Regs

Despite growing bipartisan concern over a capital proposal likely to be significantly revised, the Fed, OCC, and FDIC today requested comment on proposed changes to call reporting requirements as well as regulatory capital and market risk capital reporting requirements to ensure that these conform with the agencies’ proposal.  Many changes reflect the departure from the advanced approach, with the agencies arguing that new disclosure requirements would increase transparency and complement the supervisory review process.  Certain item instructions would also be altered to reflect AOCI transition requirements, while form terminology would change to reflect the proposed expanded risk-based approach and the scope of banking organizations covered.

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18 12, 2023

DAILY121823

2023-12-18T17:12:20-05:00December 18th, 2023|2- Daily Briefing|

House Dems Press Tax-Equity Bond Capital Fix

Emphasizing their strong support for the capital proposals, 107 Democratic lawmakers led by Rep. Sean Casten (D-IL) have sent a letter to Chair Powell, Chair Gruenberg, and Acting Comptroller Hsu again asking for revised treatment for clean energy tax-equity bonds.

Updated GSIB Indicator Amounts Now Effective

The Fed today published updated Aggregate Global Indicator Amounts pursuant to its GSIB surcharge rule (see Client Report GSIB5).

FSB Finds U.S. NBFI Assets Continue to Dwarf Banks

The FSB today released its 2023 Global NBFI monitoring report, finding that NBFIs continue to hold a larger percentage of financial assets than banks in the U.S.

DOJ/FTC Stand Firm on New Anti-Concentration Merger Policy

Justice and the FTC today released the final version of new merger guidelines, softening but not clearly weakening the agencies’ draft (see FSM Report MERGER12).

Warren, Allies Attack Hsu’s Preemption Policy

Making it clear that Acting Comptroller Hsu will have challenges from Democrats should the White House ever nominate him as Comptroller, seven Democrats led by Sen. Warren (D-MA) sent him a letter today accusing the agency of overstepping and abusing its preemption authority.

McHenry Asks CFPB to Change Open-Banking Secondary Data Approach

HFSC Chairman McHenry (R-NC) today sent a comment letter to CFPB Director Chopra reiterating the support expressed at a recent hearing (see Client Report CONSUMER53), for the agency’s open banking proposal (see FSM Report DATA4), but now asking for changes related to …

6 12, 2023

DAILY120623

2023-12-06T16:42:25-05:00December 6th, 2023|2- Daily Briefing|

OFR Sees Heightened Systemic Risk

Striking a considerably more somber note than the FRB (see Client Report SYSTEMIC97), OFR today concluded that systemic risk is elevated due to an upcoming economic slowdown, heightened inflation,  and geopolitical risk and global conflict.

OCC Cracks Down on BNPL Finance

Reflecting continuing CFPB concerns about buy-now/pay-later finance, the OCC today sets new risk-management standards for federally-chartered entities in this arena.

HFSC Housing Subcommittee Revisits Housing Debate

Today’s HFSC Housing Subcommittee hearing largely followed the staff memo’s outlined political playbook, with Chairman Davidson (R-OH) calling for market-based solutions and Ranking Member Presley (D-MA) arguing that expanded subsidies are necessary alongside zoning reform to make housing affordable.

Fed Proposes Market-Risk Valuation Reporting

Readying disclosures for the market-risk capital rewrite (see FSM Report CAPITAL233), the Federal Reserve has proposed new reporting standards that would require covered banks to disclose valuations of their covered positions taking into account unearned credit spreads, close-out costs, early termination costs, investing and funding costs, liquidity, and model risk.

Fed Proposes New Liquidity Risk Reporting Standards

Reflecting growing fears that banks could not actually monetize HQLAs under stress as proved the case for Credit Suisse, the FRB is also proposing new reporting standards requiring covered companies to report on qualifying master netting agreement compliance with current liquidity-risk measurement standards.

Daily120623.pdf

22 11, 2023

DAILY112223

2023-11-22T12:23:22-05:00November 22nd, 2023|2- Daily Briefing|

Fed Study: CBDC Analysis Needs Work, but Public-Welfare Benefits are Likely

A new FRB staff literature survey of CBDC analyses points to the wide variety of often-opposing findings relating to critical matters such as bank disintermediation and financial stability, attributing this in part to the different CBDC models under consideration in various nations.

Agencies Extend LTD Comment Period

As implied at a recent hearing (see Client Report REFORM229), the agencies have now delayed the comment deadline on long-term debt (see FSM Report TLAC9) until January 16 from November 30.

HFSC GOP Plans Immediate FDIC-Workplace Hearings

Clearly dissatisfied even though the FDIC’s new investigation will proceed without Chair Gruenberg’s involvement, HFSC Financial Institutions Subcommittee Chair Barr (R-KY) and Oversight Subcommittee Chair Huizenga (R-MI) wrote to Mr. Gruenberg demanding that he recuse himself from overseeing any independent investigation.

Daily112223.pdf

14 11, 2023

DAILY111423

2023-11-14T16:51:55-05:00November 14th, 2023|2- Daily Briefing|

Comment Deadline Set for Debit-Card Interchange Fee Cap

The Federal Register today includes the Federal Reserve’s proposed sharp reduction in the cap for debit-card interchange fees.  As previously noted (see FSM Report INTERCHANGE12), the reduction is premised on the Fed’s finding of lowered debit-card costs, but its methodology is largely unchanged and thus may not reflect current and prospective costs such as those associated with pending deposit-insurance, capital, liquidity, CRA, and open-banking standards.

FSB Hones in on Insurance Company Risk, Resolvability

At its plenary meeting over the last two days, the FSB reviewed its longstanding priorities in areas such as NBFIs, climate risk, and cryptoassets.  The most notable change in priorities comes with renewed focus on insurance-company systemic risk due to challenging resolution.

Daily111423.pdf

1 09, 2023

DAILY090123

2023-09-01T12:18:22-04:00September 1st, 2023|2- Daily Briefing|

Durbin, Marshall Reinforce Demand for Card-Fee Cuts

Pressing their bill to limit credit-card interchange fees (see FSM Report INTERCHANGE10), Senate Whip and Judiciary Chairman Durbin (D-IL) and Sen. Marshall (R-KS) this week called on Visa and Mastercard to reverse planned fee hikes.  Sen. Durbin is pressing hard to attach the bill to a must-pass vehicle later this month; as noted, it would extend routing-system requirements to credit cards and could lead to significant reductions in card-fee income for banks.

GSIB Surcharge Revisions in Register

The Federal Register today includes the Federal Reserve’s proposal to revise how systemic risk scores that lead to GSIB designation are calculated.  As noted (see FSM Report GSIB22), while the Board estimates that the overall impacts of the changes to the surcharge are small, our analysis concludes that the scoring changes could result in higher capital requirements for large regional banks and certain IHCs.

Daily090123.pdf

25 08, 2023

Daily082523

2023-08-28T11:55:32-04:00August 25th, 2023|2- Daily Briefing|

CFPB Heightens Attention to Elder Finance

The CFPB today proposed a new National “Age-Friendly” Banking Survey that would examine older adults’ banking challenges and give the Bureau greater insight into “age-friendly” account features, informing future policy work.

Daily082523.pdf

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