#Garcia – Page 2 – Federal Financial Analytics

8 10, 2021

MERGER8

Arezou Rafikian2023-06-20T15:33:35-04:00October 8th, 2021|1- Financial Services Management|

Bank Merger Restrictions

Progressive Democrats in the House and Senate have introduced legislation demanding an array of new decision factors governing bank M&A transactions and new or even revised BHC activities. President Biden’s executive order demanding more competitive U.S. markets includes numerous bank-related provisions, but does so largely through requests of independent agencies such as the Federal Reserve to work with the Department of Justice to reduce bank consolidation and enhance community service. This legislation backs up these goals with binding requirements that dramatically alter the public-interest, financial, and competitive analyses on which M&A or BHC activities have long been assessed. Many more acquisitions, especially by or among large banks, would almost surely be rejected and the process might also become so public as to undermine the confidentiality essential to initial M&A agreement.

MERGER8.pdf…

AL100421

Arezou Rafikian2023-07-24T15:29:39-04:00October 1st, 2021|3- This Week|

Back to Work

Although Senate Banking (see Client Report REFORM208) and HFSC’s (see Client Report REFORM209) hearings this week with Secretary Yellen and Chair Powell ostensibly focused on the CARES Act, in reality they covered the waterfront. In between them, HFSC’s Consumer Protection Subcommittee considered risks from fintech and much more (see Client Report MERGER7). This session made clear that a bipartisan consensus is forming around the need to bring fintech inside the regulatory perimeter when not partnering with a bank. At the least, this consensus powers up the banking agencies’ efforts to use their third-party vendor powers to impose consumer-protection and safety-and soundness rules on fintechs linked to banks (see FSM Report VENDOR9). More importantly, they signal initial Congressional alignments that may well lead to substantive legislation in 2022 and, even if they don’t, will surely lead to a new regulatory framework

AL100421.pdf…

Daily100121

Arezou Rafikian2023-07-24T15:32:22-04:00October 1st, 2021|2- Daily Briefing|

Warren Anti-Merger Bill Won’t Pass, Still Packs Punch
Following her assertions earlier this week (see Client Report REFORM208) that the Fed “rubber-stamps” bank mergers, Sen. Warren (D-MA) introduced S. 2882, legislation sharply tightening the conditions on which bank mergers may be approved.

IMF Calls for Fast Crypto Rules to Stem Rising Threats
The IMF’s latest blog post summarizes a new IMF report highlighting crypto’s emerging consumer and systemic risks.

FIO: U.S. Insurance Industry Strong, But Challenged by Low Rates
Treasury’s Federal Insurance Office (FIO) late yesterday released its annual report on the insurance industry as required by Dodd-Frank.

Daily100121.pdf…