#FRB Philadelphia

13 11, 2023

DAILY111323

2023-11-13T17:07:02-05:00November 13th, 2023|2- Daily Briefing|

Senate Banking GOP Demand End-Game Withdrawal, Holistic Review Release

Making still clearer their line of attack at tomorrow’s hearing, all GOP Members of the Senate Banking Committee today sent Chairs Powell, Gruenberg and Acting Comptroller Hsu another letter demanding the withdrawal of the capital proposals.

FRB-PHL: Fintech Spots Credit Risk Better than Banks

A new study from the Federal Reserve Bank of Philadelphia finds not only that fintech loan-risk scoring performed well during the pandemic, but also that the proprietary loan rating systems of large fintech companies better predict default likelihood in the personal loan market compared to traditional measures of credit risk.

Barr Stands By His Proposals

Vice chairman Barr’s testimony for forthcoming hearings emphasizes that the banking system is resilient and sound, eschewing the caveats included in Friday’s supervisory report about pockets of weakness.

Gruenberg Defends DIF Rewrites

While echoing comments from Messrs. Barr and Hsu about the sound banking system, FDIC Chair Gruenberg’s testimony pointed to what he called significant downside risk from higher rates, geopolitical tension, unrealized losses, and other factors.

Hsu Differentiates OCC Supervision, Defends Regs

Acting Comptroller Hsu’s testimony reiterates Mr. Barr’s comment about a sound banking system, pointedly noting that all of the recent failures were state-chartered.

Daily111323.pdf

17 04, 2023

DAILY041723

2023-04-17T16:50:24-04:00April 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

2023-01-04T13:29:59-05:00August 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

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?

2023-01-24T15:55:53-05:00June 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

2023-01-24T15:55:46-05:00June 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

2023-03-01T15:58:11-05:00April 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

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