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15 11, 2022

REFORM214

2022-11-22T15:27:38-05:00November 15th, 2022|5- Client Report|

Crypto, Deposit Rates, Capital Top Senate Discussion

At today’s Senate Banking oversight hearing with the banking agencies, Chairman Brown (D-OH) generally applauded the work of regulators, emphasizing the need for tough standards, like-kind rules for bigtech companies, and an inquiry into why depositor interest rates lag Fed rate hikes along lines posed earlier by Sen. Reed (D-RI).  FDIC Acting Chairman Gruenberg concurred, criticizing banks for sluggish rates.  Ranking Member Toomey (R-PA) reiterated his longstanding complaints about regulators straying outside their mission in areas such as climate change.  He also called for SLR relief to reduce Treasury-market risk and opposed pending large-bank resolution guidance (see FSM Report LIVINGWILL19) on grounds that it is unnecessary.

REFORM214.pdf

23 09, 2022

DAILY092322

2022-09-26T08:37:38-04:00September 23rd, 2022|2- Daily Briefing|

Dems Reintroduce Instant Funds Availability Bill

Sens. Van Hollen (D-MD) and Warren (D-MA) yesterday introduced S. 4946, a bill they also introduced in 2019 (see FSM Report PAYMENT16) to require banks immediately to offer instant funds availability.  As Sen. Van Hollen noted yesterday (see FSM Report REFORM213), the measure is intended to force banks to ensure instant funds availability and thus press membership in FedNow.  It stands no chance of passage in this Congress, but were it to pass now or next year, FedNow likely could not handle a sudden influx of retail transactions as it remains only in its advance pilot stage.

FRB Proposes Sweeping FMU Operational-Risk Update

The FRB today proposed an update to rules governing operational risk-management for certain systemically important financial market utilities (FMUs).  These requirements were last updated in 2014 and thus did not account well for cyber-threats and technology changes.  The revised rules would, among other things, focus on incident management and notification; business continuity management and planning; third-party risk management; and review and testing of operational risk management measures.

Daily092322.pdf

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