#Federal Register – Page 3 – Federal Financial Analytics

7 11, 2022

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Eliza Allen2022-11-07T17:22:53-05:00November 7th, 2022|2- Daily Briefing|

Toomey Calls for More Fed Transparency

Sen. Toomey (R-PA) continued Republican demands for still more Fed transparency, sharply criticizing the Fed’s Friday proposal to provide some transparency into which institutions are granted master accounts.

Sweeping CFPB Fee Restrictions Now Effective

The Federal Register today includes the CFPB’s circular on Unanticipated Overdraft Fee Assessment Practices and a bulletin now effective on Unfair Returned Deposited Item Fee Assessment Practices.

CFPB Advances Bigtech Market Power Campaign

Continuing its campaign against bigtech’s market power, the Federal Register today includes the CFPB’s notice and request for comment on what fees bigtech payment operators levy on users for violations of acceptable use policies and whether their policies include provisions to restrict user platform access.

Fed Staff Paper Tries To Gauge Social Welfare Impact Of Liquidity, Capital Regs

A new Fed staff study attempts to lay out the social costs and benefits of large-bank liquidity and capital regulation.

Warren Continues Campaign Against Wells Fargo, Zelle

Sen. Warren (D-MA) today continued her campaign against Zelle by sending letters to its parent company and Wells Fargo, taking particular aim at what she deems the latter’s failure to provide adequate claims and reimbursement data and labelling responses to previous letters “insulting.”

Warren Denounces Fed “Culture of Corruption”

Sen. Warren (D-MA) today also continued her campaign against Chairman Powell, sending him a letter alleging “another set of egregious and embarrassing ethics breaches.”

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25 10, 2022

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Eliza Allen2022-10-25T17:08:46-04:00October 25th, 2022|2- Daily Briefing|

Setting Stage for US Action, UK Regulators Target Bigtech Consumer-Finance Market Power

Focusing principally on competition, the UK’s Financial Conduct Authority (FCA) today released a discussion paper investigating bigtech’s entry into payments, deposit, consumer-credit, and insurance.

With Yellen Backing, SEC Central-Clearing NPR Advances

The Federal Register today includes the SEC’s proposal requiring that market clearinghouses submit certain secondary-market transactions for clearing along with the small percentage now already centrally-cleared.

FDIC Reports Significant Financial Inclusion Progress

Showing significant improvements in financial inclusion, the FDIC today released its biennial under- and unbanked household survey.

CFPB to Require Almost-Open Banking

At long last and as recently promised, the CFPB later this week will start a rulemaking process that would ultimately require financial institutions to share personal data with a consumer upon his or her request.

Democrats Get Ready To Blame The Fed

Continuing progressive critiques of the FOMC’s anti-inflation fight, Senate Banking Chairman Brown (D-OH) has written to FRB Chairman Powell sharply protesting current Fed policy.

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19 08, 2022

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Eliza Allen2023-01-04T11:13:22-05:00August 19th, 2022|2- Daily Briefing|

Payment-System Decision Process May Begin Today

Today’s Federal Register includes the Fed’s final payment-system access guidance (see FSM Report PAYMENT25). The guidelines are thus effective immediately. As noted, the final three-tier process for Reserve Bank deliberations sets out a process for streamlined, “intermediate,” and additional scrutiny based on an applicant’s charter, regulation, risk-profile, and numerous other, possibly discretionary factors.

CFPB Plans New Credit-Card Fee Disclosure Requirements

Following its ANPR on credit-card fees (see FSM Report CREDITCARD35), the CFPB today published a rationale for its campaign to control them and – despite the early stage of its rulemaking – a plan to do so via a data-collection proposal published yesterday in the Federal Register. Comments on the proposal are due by October 17 and the details now provided on the Bureau’s plans suggest it will get more than a few. The post argues that APR transparency would spur competition and empower consumers.

FDIC Goes After Crypto Companies for False Advertising

Based on its earlier warning and recent rule re advertising FDIC insurance, the FDIC today issued cease-and-desist orders against five cryptocurrency companies it claims are advertising that several of their crypto-related products are FDIC-insured. The order expressly instructs these companies to remove any reference that suggests products carry FDIC coverage within fifteen days and makes clear that a failure to comply will result in further FDIC action, the nature of which is not specified.

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17 08, 2022

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Eliza Allen2023-01-04T11:35:25-05:00August 17th, 2022|2- Daily Briefing|

Bowman Cautions on Payment-System Access, CBDC

In remarks today, FRB Gov. Bowman pointed to the Fed’s final payment-system access guidelines, again urging nonbanks not to have “false expectations” about access while an implementation process advances. She also noted a longstanding inter-agency proposal addressing partnership risks (see FSM Report VENDOR9) and said she believes final action is needed but provided no insight into when this might in fact occur. Noting also yesterday’s Fed supervisory letter on cryptoassets, Gov. Bowman indicated that additional supervisory guidance on stablecoins, custody, and other outstanding digital-asset issues is also being developed.

CFPB Digital-Market Standards Start Now

Today’s Federal Register includes the CFPB’s interpretive rule subjecting digital companies using behavioral or similar data to market consumer-finance products to federal consumer law (see FSM Report FINTECH30). The rule is effective immediately. As noted, the rule curtails the extent to which digital advertising and marketing strategies are exempt from CFPB regulation and state or federal enforcement actions.

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28 07, 2022

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Eliza Allen2023-01-04T15:35:02-05:00July 28th, 2022|2- Daily Briefing|

End-August Deadline Set for LIBOR Comments

The Federal Register today includes the Fed’s proposal to implement the LIBOR Act. Comments are due by August 29. As we noted (see FSM Report LIBOR8), a smooth transition from LIBOR by its effective end date in June 2023 appears unlikely, with the Fed leaving several questions unresolved in its NPR in favor of meeting this deadline.

HFSC Votes in On Key Bills

Turning to recorded votes from yesterday’s markup, the HFSC today approved several bills including reforms to overdraft fees and credit reporting. The overdraft bill, H. R. 4277 (Maloney, D-NY), passed 27-22. Also voted on were H.R. 8485 (Williams, D-GA), and H.R. 8478 (Pressley, D-MA). Both passed the Committee 28-23.

FSOC Agency Heads Report Climate-Risk Progress

At today’s FSOC open meeting, member agency heads reported their climate-risk progress following the President’s executive order. Chairman Powell reiterated that the Fed is updating work on climate risk assessments without providing timing or details. SEC Chairman Gensler mentioned the SEC’s proposed climate disclosure proposal, stating that hundreds of issuers already disclose climate-related information.

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20 07, 2022

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Eliza Allen2023-01-06T14:31:13-05:00July 20th, 2022|2- Daily Briefing|

Fed Study: Mortgage Churning for CRA Adversely Affects LMI Mortgage Market

A new Fed staff paper revisits one of the longstanding questions with CRA regulation: whether allowing equal CRA credit for mortgage originations and purchases increases LMI-focused mortgage finance. Critics of past CRA rules have argued that mortgage purchases are “churning” – i.e., the same loans are bought and sold across the marketplace at the time of each bank’s CRA examination.

Comment Deadline Extended for CFPB Relationship Banking RFI

The Federal Register today provides a 30-day comment period extension for the CFPB’s Relationship Banking RFI (see FSM Report CONSUMER43). Comments are now due August 22. As noted, the Bureau has inferred that preserving relationship banking requires “human touch” rapid responses to consumer inquiries that will ensure high-quality banking services are available in all markets.

CFPB Blog: Overdraft/NSF Policy Changes Reduced Fees

Expanding on its December 2021 report, a CFPB blog post today concluded that overdraft and NSF policy changes led to significant reductions in the amount bank customers incur from various account fees. The post provides two tables — one displaying overdraft/NSF revenue and the other showing ATM fees — across multiple years and specific quarters for small and midsize banks and for select large banks.

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11 04, 2022

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Eliza Allen2023-03-02T11:34:50-05:00April 11th, 2022|2- Daily Briefing|

SEC Sets Comment Deadline for Climate Disclosure Proposal

The Federal Register notice for the SEC’s controversial climate-risk disclosure proposal now sets the comment deadline as May 20. As we noted when the proposal was approved, it aims to require Scope 1 and 2 emissions disclosures and includes an initial construct that will gradually lead to Scope 3 disclosures from larger companies.

Global Supervisor Prioritizes Commodity-Market Risk

As we noted in our weekly update, global regulators are increasingly concerned about commodity-market volatility. In an interview today, FSB Secretary General Dietrich Domanski said that the top supervisory priority now should be monitoring commodity prices and valuations to anticipate margining stress and liquidity shortfalls.

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4 04, 2022

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Eliza Allen2023-03-27T12:49:01-04:00April 4th, 2022|2- Daily Briefing|

FDIC Climate-Risk Principles Set for Public Comment

Today’s Federal Register includes the final text of the FDIC’s request for public comment on climate-risk management principles.

FRB-NY Reasserts that Disasters Don’t Damage Bank Resilience

The Federal Reserve Bank of New York today released a blog post on its earlier staff paper finding that weather events triggering federal disaster declaration did not pose significant risk to bank resiliency, even for the most damaging of disasters.

GOP Demands Disclosure, Not Rules, Govern Stablecoins

Republicans last week outlined their preferred, disclosure-based approach to stablecoin regulation, a sharp contrast to the PWG’s recommendations (see Client Report CRYPTO21) calling for new chartering restrictions.

HFSC Presses Financial Industry for Reparations

The HFSC memo today on tomorrow’s hearing about the need for reparations from the financial-services industry indicates that the Oversight Subcommittee will focus on the extent to which banks provided financing for slavery, allowed for enslaved persons to be used as collateral, and how insurers covered enslaved people’s work or sales value.

Nonbank Small-Business Lenders Face Possible CFPB Sanction

House Small Business Chair Velasquez (D-NY) has introduced H.R. 7351 to force nonbank small-business lenders into the CFPB’s efforts to identify patterns of racial, ethnic, or gender bias via ECOA disclosures.

CFPB Demands Lenders Give Consumers Data in Servicing, Other Disputes

Building on its mortgage servicing initiatives, the CFPB today not only filed an amicus brief in a case against Wells Fargo, but also reiterated that banks must participate in “relationship banking” and respond promptly …

30 03, 2022

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Eliza Allen2023-03-27T14:58:35-04:00March 30th, 2022|2- Daily Briefing|

Overdraft Hearing Sure to Raise Fee, Inclusion Concerns

Although the HFSC memo on tomorrow’s overdraft hearing tees up legislation for possible action, we expect the Consumer Protection Subcommittee hearing to be a rhetorical exercise pressuring banks which still charge what Democrats, as well as Acting Comptroller Hsu and CFPB director Chopra, view as punitive fees.

FDIC Joins Campaign for Climate-Risk Management Standards

The FDIC today issued a request for comment on climate-risk management similar in many respects to the OCC’s outstanding release (see FSM Report GREEN12).

Senators Urge Treasury, SEC to Close Private Investment Sanctions Gap

Sens. Warren (D-MA) and Whitehouse (D-RI) today asked in a letter to Treasury and the SEC to accelerate closing the AML/CFT gap posed by private investment firms.

CFPB Revs Up Democratic Overdraft Anger

Ahead of tomorrow’s overdraft hearing, the CFPB today put out a strong blog post saying that, while some banks have properly addressed consumer risk, many have yet to do so.

Senate Dems Demand More Small-Business Lending

Senate Banking Committee Chairman Brown (D-OH), Majority Whip Durbin (D-IL), and eight other Democrats today wrote to all the banking agencies demanding that they do something to ensure that banks lend more to small businesses.

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24 01, 2022

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Arezou Rafikian2023-04-20T14:55:24-04:00January 24th, 2022|2- Daily Briefing|

FFIEC Advances Exam-Reform Initiative

Completing the final phase of its Examination-Modernization Project, the FFIEC late last week issued best practices for requesting examination information from supervised entities. Best practices include requesting only risk-focused and relevant information, giving institutions sufficient time, and examiner coordination to avoid duplicative and/or redundant requests.

CFPB Seeks Comment on BNPL

The CFPB’s inquiry into buy-now/pay-later (BNPL) providers along with questions for public comment were posted in today’s Register.

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