#Gensler – Page 5 – Federal Financial Analytics

8 09, 2022

DAILY090822

Eliza Allen2022-11-09T13:00:10-05:00September 8th, 2022|2- Daily Briefing|

Gensler Stands Crypto Ground

In remarks today, SEC Chairman Gensler stood firm: almost all crypto tokens are securities because they are investment contracts under the “Howey Test.” Further guidance is unnecessary, he said, because the Commission has been clear and crypto companies request it only because they do not like this conclusion, not because they fail to understand it.

GOP Demands Answers On CBDC Authorization, Construct

Ranking Member McHenry (R-NC) and all of the HFSC’s Republicans today sent a letter to Vice Chair Brainard demanding that she clarify several issues germane to U.S. CBDC issuance. These most notably include the extent to which the “support” from the Administration and Congress she said was needed (see Client Report CBDC13) means express statutory change and Administration order.

Toomey Demands Greater CRA Transparency, Updated Regulations

Ranking Member Toomey (R-PA) today sent a letter to Vice Chair Brainard, Acting Comptroller Hsu, and Director Gruenberg sharply criticizing what he calls a lack of transparency of CRA-derived community benefit plans (CBPs). Describing these as an “egregious” circumvention of congressional intent, he demands that the banking regulators update regulations implementing GLBA’s CRA sunshine provision, specifically urging them to establish a public database containing all CRA-related agreements in full.

Daily090822.pdf…

25 08, 2022

DAILY082522

Eliza Allen2023-01-04T10:34:26-05:00August 25th, 2022|2- Daily Briefing|

KC-Fed: Data Aggregation Requires Rules Before Mass Adoption

The Kansas City Fed yesterday released a briefing on data aggregators concluding that they can improve the efficiency and quality of consumer financial services if proper regulation protecting data security and privacy is enacted.

SEC Prioritizes Enforcement, Disclosure, Working-Families and Systemic Risk

The SEC’s new strategic plan through 2026 speaks to Chairman Gensler’s focus on fairness, economic opportunity, and enforcement. Specifics are sparse, but the plan puts the agency’s enforcement policy in the context of protecting “working families” especially when it comes to enforcement in areas such as cryptoassets.

FSI Report: Bigtech, Third Party Vendors Pose Operational Risk

The BIS Financial Stability Institute today released a study examining operational resiliency through a macroprudential lens, offering recommendations on how to address systemic risks presented by critical third-party service providers and bigtech.

Daily082522.pdf…

28 07, 2022

DAILY072822

Eliza Allen2023-01-04T15:35:02-05:00July 28th, 2022|2- Daily Briefing|

End-August Deadline Set for LIBOR Comments

The Federal Register today includes the Fed’s proposal to implement the LIBOR Act. Comments are due by August 29. As we noted (see FSM Report LIBOR8), a smooth transition from LIBOR by its effective end date in June 2023 appears unlikely, with the Fed leaving several questions unresolved in its NPR in favor of meeting this deadline.

HFSC Votes in On Key Bills

Turning to recorded votes from yesterday’s markup, the HFSC today approved several bills including reforms to overdraft fees and credit reporting. The overdraft bill, H. R. 4277 (Maloney, D-NY), passed 27-22. Also voted on were H.R. 8485 (Williams, D-GA), and H.R. 8478 (Pressley, D-MA). Both passed the Committee 28-23.

FSOC Agency Heads Report Climate-Risk Progress

At today’s FSOC open meeting, member agency heads reported their climate-risk progress following the President’s executive order. Chairman Powell reiterated that the Fed is updating work on climate risk assessments without providing timing or details. SEC Chairman Gensler mentioned the SEC’s proposed climate disclosure proposal, stating that hundreds of issuers already disclose climate-related information.

Daily072822.pdf…

17 06, 2022

DAILY061722

Eliza Allen2023-01-26T11:48:59-05:00June 17th, 2022|2- Daily Briefing|

Powell Ponders the Dollar
In remarks today at a conference on the dollar’s reserve-currency status, Chairman Powell highlighted Fed actions to ensure that the dollar is not only an essential global payment instrument, but also a stable one.

Republicans Prepare to Investigate SEC over Climate-Risk Disclosures
In a letter to SEC Chairman Gensler, Senate Banking Republicans upped their campaign against the SEC’s proposed climate disclosure rule, asking the Chairman to provide all written communication related to it.

Chopra Redoubles Plans for Innovative Standard-Setting, Tough New Rules
In a sweeping statement today, CFPB Director Chopra strongly defended his agency’s unusual approach to recent guidance and rulemakings as well as detailed ongoing priorities.

BIS Announces New Crypto, Cybersecurity, and Green Finance Projects
The BIS Innovation Hub today updated its 2022 work program with several new projects on cryptocurrency, cybersecurity, green finance, and CBDC.

Daily061722.pdf…

15 06, 2022

CRYPTO28

Eliza Allen2023-01-26T15:43:09-05:00June 15th, 2022|1- Financial Services Management|

U.S. Digital-Asset Framework

After protracted negotiations and much public attention, bipartisan senators have introduced a far-reaching bill designed to encourage digital-asset use without undue risk to consumers, investors, or the financial system. The bill decides most, if not all, of the outstanding regulatory barriers to digital-asset use in favor of digital assets and their providers. Provisions in many cases go farther than public discussion has so far noted – for example, the measure not only expands the ability of digital-asset providers to reach retail and wholesale customers, but also gives them access to FDIC resolution without the cost of paying insurance premiums or coming under many of the rules that govern insured depositories. Digital-asset providers could also make loans without the disclosures designed to be transparent to less well-informed consumers or the other consumer-protection standards administered by the CFPB.

CRYPTO28.pdf …

14 06, 2022

FedFin On: U.S. Digital-Asset Framework

Arezou Rafikian2023-01-27T15:30:30-05:00June 14th, 2022|The Vault|

After protracted negotiations and much public attention, bipartisan senators have introduced a far-reaching bill designed to encourage digital-asset use without undue risk to consumers, investors, or the financial system. The bill decides most, if not all, of the outstanding regulatory barriers to digital-asset use in favor of digital assets and their providers. Provisions in many cases go farther than public discussion has so far noted – for example, the measure not only expands the ability of digital-asset providers to reach retail and wholesale customers, but also gives them access to FDIC resolution without the cost of paying insurance premiums or coming under many of the rules that govern insured depositories…

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

7 06, 2022

DAILY060722

Eliza Allen2023-02-10T15:50:52-05:00June 7th, 2022|2- Daily Briefing|

New Crypto Bill Empowers Digital Assets, Faces High Hurdles

After months of negotiation and public discussions, Sens. Lummis (R-WY) and Gillibrand (D-NY) today introduced a comprehensive crypto-reform measure designed to promote the proverbial “responsible-innovation” on which all sides agree despite wide differences in how each defines this goal.

CBDC Adoption Has Compelling Rationale Even Though CBDC Not Essential

A new article from the Federal Reserve Bank of Richmond weighs the pros and cons of US CBDC adoption, concluding that – although CBDC would be unlikely to bring short-term benefits to the money and payments system – several compelling reasons nonetheless exist for implementation and, at the least, serious design and functionality research and policy preparedness.

Brown Wants FSOC to Quell Consumer-Data Sales

Senate Banking Chairman Brown (D-OH) today renewed his campaign against consumer-data sales, directing his requests to FSOC but doubtless also firing up CFPB action in a newly-high profile arena.

HFSC Dems Demand More on Historic Patterns of Slavery Finance, Insurance

HFSC Chairwoman Waters (D-CA) and all of the panel’s subcommittee chairs today sent a letter to the ten largest U.S. banks and five largest life insurers demanding more data on the financing of slavery.

Daily060722.pdf…

24 05, 2022

DAILY052422

Eliza Allen2023-02-21T13:49:08-05:00May 24th, 2022|2- Daily Briefing|

BIS Committee Fears Debt Build-Up Poses Systemic Risk

The BIS Committee on the Global Financial System has concluded that sharp increases in household and corporate debt pose increasing systemic risk.

CFPB Creates New Competition Office, Plan

Reflecting its director’s continuing focus on consumer-finance competition, the CFPB today recast an office that previously encouraged “sandbox” product launches into an office focused principally on enhancing the ability of small firms and start-ups to compete with big banks, fintech, and bigtech.

FRB-Dallas Staff: TALF Worked for CMBS

The Federal Reserve Bank of Dallas has issued a new report documenting the manner in which Fed support at the pandemic’s outset supported U.S. commercial real estate.

IDIs Sound, but Worrisome Signs

The FDIC’s report on banking-sector 1Q data shows that, despite continuing strong earnings and robust credit quality, some IDIs are facing serious challenges.

HFSC Disabilities Hearing Confirms Little Appetite for New Legislation

As anticipated, HFSC’s Subcommittee on Diversity and Inclusion hearing today covered issues faced by persons with disabilities such as under-banking, unemployment and housing inaccessibility.

Brainard to Lay Out Key CBDC Considerations

The HFSC staff memo today on Thursday’s CBDC hearing confirms that it will be a consequential session.

HFSC Backs OLA, Climate Action in FY23 Budget

The House Financial Services Committee today released its views on the FY2023 budget, detailing broad support for the administration’s financial stability, climate, and housing efforts to guide its future authorizing work and that of the appropriations committees to the extent they heed HFSC’s request.…

17 05, 2022

DAILY051722

Eliza Allen2023-02-21T14:40:03-05:00May 17th, 2022|2- Daily Briefing|

Chopra’s Call for FDIC Insurance Revocation Gains Strength

Although Republican Members of Congress last week sharply criticized Rohit Chopra’s suggestion that FDIC coverage be denied banks that violate consumer-protection standards, the proposal has picked up support among at least some Democratic state legislators.

FDIC Advertising Rule Sets New Course for CFPB Fintech Enforcement

The FDIC today finalized its proposal (see FSM Report DEPOSITINSURANCE112) to increase the penalties when advertising or other actions mislead consumers as to the extent to which FDIC insurance covers deposits or deposit-like placements.

SEC Turns to Systemic Standards

In remarks today, SEC Chairman Gensler expanded his campaign against market concentration related to payment-for-order flow to a broader set of systemic-risk concerns due to increased concentration of key securities-market infrastructure activities in a small number of very large firms.

Hsu Sounds Alarm re Risk Concentrations, Consumer Fragility

In remarks today, SEC Chairman Gensler expanded his campaign against market concentration related to payment-for-order flow to a broader set of systemic-risk concerns due to increased concentration of key securities-market infrastructure activities in a small number of very large firms.

Daily051722.pdf…

8 04, 2022

Al040822

Arezou Rafikian2023-03-02T11:41:32-05:00April 8th, 2022|3- This Week|

Lots to do

Although Congress has left Washington for a two-week recess, it and the rest of the capital will be working hard – FedFin very much included. Key developments to anticipate include:

Sanctions Plus: As Secretary Yellen made clear in her HFSC testimony (see Client Report SANCTION18) the U.S. and its allies are looking for ways to punish Russia and its allies, and Congress wants more of this on a still faster schedule. A raft of bills is awaiting an HFSC mark-up and negotiations are under way to position many of them for action when Congress convenes on April 25. Facts on the ground and thus action by the Administration may take some of these bills off the table, and others are largely rhetorical. However, some bills mandate the secondary sanctions the White House has so far been wary of imposing. Given their financial-market consequences, we’ll be watching these with particular care….

Alo40822.pdf…