#FINRA – Federal Financial Analytics

15 08, 2023

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Eliza Allen2023-08-15T16:28:12-04:00August 15th, 2023|2- Daily Briefing|

HFSC GOP Accuses SEC, FINRA of Crypto-Bill Sabotage

Accusing the SEC of preempting HFSC Republicans’ crypto legislative efforts via FINRA, HFSC Chairman McHenry (R-NC) and 22 other Committee Republicans today sent letters to SEC Chairman Gensler and FINRA CEO Robert Cook arguing that the timing of Prometheum Ember Capital LLC’s approval to operate as a special purpose broker-dealer (SPBD) was calculated to show that the SEC’s current crypto regulatory powers are sufficient. The letters highlight that Prometheum is unable to perform clearing or settlement services and has yet to serve any customers, also noting what are said to be the company’s close ties to the Chinese Communist Party.

Daily081523.pdf…

13 06, 2023

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Eliza Allen2023-06-13T17:11:07-04:00June 13th, 2023|2- Daily Briefing|

Prime Brokers Face New Liquidity-Risk Standards

FINRA today released long-awaited proposals to ensure greater prime-broker liquidity, with prime brokers governed by the largest BHCs presumed to have sufficient liquidity based on Fed supervision of relevant enhanced liquidity standards.

Treasury Presses Private RTP

In remarks today, Treasury Assistant Secretary Graham Steele made it clear that Treasury wants to see private real-time payments continue in concert with FedNow to ensure resilience, noting also that instant payments pose risks that require new tools such as advanced cryptographic methods and controls such as transaction limits.

Chopra Stands Ground; Vance Considers Banking-Agency Overhaul

Today’s Senate Banking Committee hearing with CFPB Director Chopra showcased the usual partisan divide over the Bureau’s mission, with Democrats denouncing the 5^th Circuit’s decision and Republicans taking issue with the Bureau’s franchise and activities as well as its credit-card late fee proposal (see FSM Report CREDITCARD36) and small business reporting rule.

Democrats Remain Cautious on Stablecoin Bill, Opposed to Crypto Jurisdiction Rewrite

As anticipated, the full HFSC hearing today on digital assets focused on draft legislation concerning payment stablecoins and digital asset market structure.

Daily061323.pdf…

24 06, 2022

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Eliza Allen2023-01-25T15:43:05-05:00June 24th, 2022|2- Daily Briefing|

ILC, Overdraft Bills Face Tough Path to Passage

The vote is now out on H.R. 5912, Rep. Garcia’s (D-IL) bill to circumscribe ILC charters (see FSM Report ILC13). As we noted during the mark-up, the final bill includes modified grandfather language designed to protect existing parent companies without giving them future protection from BHC-like standards. The bill passed narrowly – 28-25 – and is likely to face a still more challenging time on the House floor.

HFSC Wants Tough New Broker-Dealer Standards

HFSC’s investigative report today on the meme-stock crisis takes a strikingly different approach than the SEC’s pending rule. While the Commission is focused on circumscribing payment for order flow and other market practices, HFSC principally targets broker-dealer resilience and the role of the DTCC and other critical market infrastructure. It thus calls on Congress, the SEC, the DTCC, and the NSCC to create a new emergency-liquidity facility for clearing brokers and lays out an array of safety-and-soundness standards it wants the SEC and FINRA to mandate.

GOP Targets Thompson

Picking up their complaints about HFSC’s housing focus from Wednesday’s mark-up, Committee Republicans today called on Chairwoman Waters (D-CA) to bring FHFA Director Thompson before the panel. They are concerned about the safety and soundness of the housing finance system amid increasing recession forecasts, highlighting the urgent pressures of higher mortgage rates and declining household income.

Daily062422.pdf…

25 05, 2022

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Eliza Allen2023-02-21T13:42:48-05:00May 25th, 2022|2- Daily Briefing|

Hsu Renews, Heightens Crypto Criticism

Late yesterday, Acting Comptroller Hsu pointed to recent stablecoin collapses to reaffirm his crypto skepticism, arguing that – until a better regulatory construct is established in this sector – strict controls such as those recently instituted for national banks are necessary and appropriate. Although crypto may offer benefits for both innovation and inclusion, Mr. Hsu described fundamental challenges made evident by recent events.

Treasury to Revisit Investment-Adviser AML/CFT Standards

In remarks today, Treasury Under-Secretary of Terrorism and Financial Intelligence Brian Nelson underlined Treasury’s commitment to working with the private sector to maximize sanctions impact, mentioning the long-delayed beneficial ownership rule only in passing and without providing any timeline. However, Mr. Nelson did provide additional insight into Treasury’s latest priority relating to investment advisers.

CFPB Calls Out Credit Card Lenders for Payment Data Reporting Practices

Combining its campaign against credit-card lenders, the CFPB today sent strongly-worded letters to large credit-card lenders inquiring about the alleged practice of suppressing or neglecting to report the actual payment-amount field. The Bureau is concerned that this makes it more difficult for consumers to obtain optimal products, phrasing its release as a direct appeal to consumers.

Daily052522.pdf…