#Foster – Page 2 – Federal Financial Analytics

30 11, 2021

Daily113021

Arezou Rafikian2023-05-23T14:25:32-04:00November 30th, 2021|2- Daily Briefing|

FSB Revisits Cross-Border GSIB Resolution Quandary
Continuing its work to end TBTF banks, the FSB today issued good practices for the crisis management groups that would take on a troubled GSIB. It is striking that this statement does not use the more conventional “best practices” designation; one can only speculate that this is due to limited English proficiency by the final drafts people or the document fell short of what some FSB participants believed behooved best practice.

Waters, Foster Urge Rules to Combat Algo Bias
Continuing a recent hearing theme, HFSC Chairwoman Waters (D-CA) and AI Task Force Chair Foster (D-IL) late yesterday urged federal financial regulators to ensure that AI/ML is algorithmic-bias free. Responding to the regulators’ request for information on AI use (see FSM Report AI), they argue that historical data may perpetuate longstanding bias and create models that discriminate against protected classes.

Clarida Stands By Fed Emergency Market Interventions
Outgoing FRB Vice Chairman Clarida today argued that the Fed has carefully deployed its 13(3) emergency powers and thus preserved its independence.

Daily113021.pdf…

Daily101321

Arezou Rafikian2023-06-15T15:03:35-04:00October 13th, 2021|2- Daily Briefing|

Quarles Quandary Not Key to Fed Reg, M&A Action
Late yesterday, the Federal Reserve Board announced that Randy Quarles will cease his duties as supervision vice chair starting today. Mr. Quarles’ term as a governor continues until 2032 but the vice chairmanship is a position appointed by the President and confirmed by the Senate.

FSB Sets Ambitious Course for Cross-Border Payment Redesign
The FSB today published both a progress report on its cross-border payment roadmap (see FSM Report PAYMENT21) and a final set of forward-looking plans. Work on the roadmap has advanced well, with the FSB now expressly incorporating CBDC into its forward-looking work.

Senate GOP Heightens Pressure on Reserve-Bank Appointments
Countering an array of Democratic demands for diversity, Senate Banking Republicans today urged the boards of the Boston and Dallas Reserve Banks to ensure an apolitical appointment process.

AI Task Force Considers Algo Privacy, Transparency, Bias
As anticipated, today’s HFSC AI Task Force hearing on ethical AI kicked off Congressional work on this hot topic, making it clear that Democrats may advance consumer-data privacy, algorithm transparency, and anti-bias standards.

Brown Fires Fusillade at Fed Regulatory Policy
Making it more than clear that he takes at best a guarded approach to Jay Powell’s renomination, Senate Banking Chairman Brown (D-OH) today sent Mr. Powell a letter demanding a “new direction” in bank regulation regardless of who succeeds Vice Chairman Quarles and chairs the Fed.

Daily101321.pdf…

MERGER7

Arezou Rafikian2023-07-31T16:00:20-04:00September 29th, 2021|5- Client Report|

HFSC Explores Wide Array of Merger, Fintech, ILC Reforms

In a wide-ranging hearing today, HFSC’s Consumer Protection and Financial Institutions Subcommittee showed the extent to which Chairwoman Waters (D-CA) and progressive Democrats are wary of large-bank mergers. Buoyed by witnesses who believe recent large transactions accelerate under-service for communities of color, Democrats suggested new, tougher standards and greater transparency. Republicans countered that regulatory burden exacerbates consolidation. However, both sides of the aisle agreed that fintechs pose an array of risks, with Democrats contending these warrant new ILC standards or even an end to limited-purpose charters. Republicans lambasted the true lender rule reversal, arguing it harms the bank-fintech partnership model they generally supported. For fintechs operating outside of bank partnerships, there was bipartisan agreement that the regulatory playing filed needs to be leveled to reduce arbitrage opportunities.

MERGER7.pdf …