#FRB Philadelphia – Federal Financial Analytics

17 04, 2023

DAILY041723

Eliza Allen2023-04-17T16:50:24-04:00April 17th, 2023|2- Daily Briefing|

HFSC Prepares for Gensler Grilling

As expected, the staff memo ahead of HFSC’s hearing tomorrow with SEC Chairman Gensler reiterates much that has previously played out in highly-critical correspondence and subpoena threats.

Senate GOP Again Slam CFPB

Ranking Member Scott (R-SC) along with eight other Senate Banking Republicans sent a letter to CFPB Director Chopra last Thursday again taking serious issue with the CFPB’s “junk fee” initiative (see FSM Report CONSUMER38), calling many targeted fees “legal” and “reasonable.”

FRB-Philadelphia Study: U.S. Banking Not Concentrated

A new paper from the Federal Reserve Bank of Philadelphia finds that data suggesting undue banking-sector concentration may be misleading.

Fed Study: EU Banks Dress Up As Supervisors Approach

In a most timely study, the FRB has released a staff paper assessing how bank supervision alters short- and medium-term bank risk-taking.

Daily041723.pdf…

3 08, 2022

DAILY080322

Eliza Allen2023-01-04T13:29:59-05:00August 3rd, 2022|2- Daily Briefing|

Senate Ag Crypto Bill Lauds CFTC, Faces Many Obstacles

As we anticipated as the crypto debate continues, the Senate Agriculture Committee has sought to claim jurisdiction with a new, bipartisan bill granting the CFTC broad regulatory, supervisory, and enforcement powers over most digital-asset platforms and the assets traded on them.

ECB Study Favors CBDCs Over Private Crypto for Cross-Border Payments

A study released by the ECB today argues that CBDCs would be a cheaper, safer, and more effective vehicle for cross border payments for global transactions than privately-issued cryptoassets or stablecoins. Based on assessment of global, not just EU markets, the study thus has implications for those in the U.S. opposing a CBDC.

FRB-Minneapolis Renews Attack on Big-Bank Capital Resilience

Renewing its attack on big-bank capital ratios, the Federal Reserve Bank of Minneapolis today released its own stress-test conclusions, reinforcing its president’s longstanding view that the largest U.S. banks are woefully under-capitalized even though test results show considerable variance on a bank-by-bank basis as well as overall resilience.

FRB Philadelphia President Touts Fintech’s Financial Inclusion Potential

FRB Philadelphia President Patrick Harker today stated that fintech can increase financial inclusion, specifically citing buy-now pay-later products because they offer financial services to low- to moderate-income customers who would otherwise be locked out of traditional lending because they are more likely to be non-White, lower earning, and younger.

Daily080322.pdf…

30 06, 2022

FedFin: Equitable Servicing Standard Time?

Arezou Rafikian2023-01-24T15:55:53-05:00June 30th, 2022|The Vault|

The Federal Reserve Bank of Philadelphia’s latest report on foreclosure risk includes a worrisome finding: the sharp rise in interest rates means that most loan-mod recipients won’t actually get much relief. This combined with troubling data on GSE loan-mod results and racial equity could spur FHFA intervention if market conditions worsen…

The full report is available to subscription clients. To find out how you can sign up for the service, click here.…

30 06, 2022

GSE-063022

William Cross2023-01-24T15:55:46-05:00June 30th, 2022|4- GSE Activity Report|

Equitable Servicing Standard Time?

The Federal Reserve Bank of Philadelphia’s latest report on foreclosure risk includes a worrisome finding: the sharp rise in interest rates means that most loan-mod recipients won’t actually get much relief. This combined with troubling data on GSE loan-mod results and racial equity could spur FHFA intervention if market conditions worsen.

GSE-063022.pdf…

25 04, 2022

DAILY042522

Eliza Allen2023-03-01T15:58:11-05:00April 25th, 2022|2- Daily Briefing|

HFSC Revs Up Repeat-Offender Legislation

As anticipated, the HFSC memo ahead of its hearing on Wednesday with CFPB Director Chopra covers a wide range of issues, actions, and CFPB priorities. The memo also lists many bills pending in the House that touch on the CFPB, but, importantly, also announces a new draft measure to mandate that the banking agencies not only join the CFPB in its campaign to sanction large “repeat offenders”, but also stipulates stiff penalties in such cases based in part on a longstanding measure from Chairwoman Waters (D-CA) to break up “megabanks” found to have repeat compliance failures (see FSM Report GSIB11).

CFPB Claims Expansive Authority over Nonbank Consumer-Finance Companies

Invoking what it describes as “dormant” authority, the CFPB today announced that it will extend its supervisory authority to nonbanks such as fintechs now not expressly covered by its procedures, doing so also for any nonbank consumer-finance company reasonably found by the Bureau to pose consumer risk.

FRB-PHL Finds Worrisome Signs of Mortgage Risk

The Federal Reserve Bank of Philadelphia today announced a monthly survey of mortgage-market risk, concluding in its first analysis that foreclosure rates are in moderate bounds but significant risk pockets are concerning. These include the fact that the Black past due rate is 6.9 percent compared to three percent for whites.

Daily042522.pdf…