#IOSCO – Page 4 – Federal Financial Analytics

14 03, 2022

DAILY031422

Eliza Allen2023-04-03T15:04:42-04:00March 14th, 2022|2- Daily Briefing|

IOSCO Adds Carbon-Market Review to Work Plan

IOSCO today released a comprehensive sustainability work plan, moving beyond the investor-focused disclosures it previously espoused set for action next week by the SEC. Going forward, global securities regulators have now prioritized reducing greenwashing and encouraging reliable ESG-impact assessment. IOSCO will thus review both the pending IFRS climate- and general-sustainability disclosure requirements and final standards.

Raskin Faces Still Higher Confirmation Odds

Sen. Manchin (D-WV)’s statement today that he will not support Sarah Bloom Raskin makes her path to confirmation difficult, if not impossible. For her appointment as Fed Supervisory Vice Chair to advance, at least one Republican would need to break ranks on the Senate floor even if Ranking Member Toomey (R-PA) is unable to hold his blockade.

Daily031422.pdf…

7 12, 2021

Daily120721

Arezou Rafikian2023-05-23T13:20:29-04:00December 7th, 2021|2- Daily Briefing|

FBO Sanctions Update
Sens. Cotton (R-AR), Rubio (R-Fl) and eleven GOP colleagues have introduced S. 3318, legislation pressing the U.S. to deny foreign financial institutions access to the U.S. financial system if they provide “Palestinian martyr” payments.

Chopra Slams “Banking Cartel” as CFPB Sets LIBOR Standards
The CFPB today issued its final LIBOR-transition rule, with Director Chopra’s accompanying statement emphasizing that this rule will now prevent the “banking cartel” from again illegally setting disadvantageous consumer interest rates.

CFPB Accepting Additional Bigtech Inquiry Comments
The CFPB today reopened the comment period on its bigtech inquiry, now accepting comment until December 21. As we noted when the comment period opened, the Bureau then provided a very short comment window because Director Chopra said that the Bureau must move quickly due to the initiative’s importance.

Warren Readies Anti-Powell Attack
Sen. Warren (D-MA) today released a letter making it clear that she will strongly oppose Chairman Powell when his confirmation comes before the Senate Banking Committee.

FSB: Persistent Gaps Challenge Resolution Regimes
The FSB today updated progress on implementing its key attributes of effective resolution regimes, reporting significant advances at GSIBs despite gaps at smaller banks, insurance companies, and CCPs.

HFSC Dems: Investment Firms Must Increase Diversity
Ahead of a hearing Thursday sure to be critical of large financial companies, a new HFSC majority staff report on diversity and inclusion looks at large investment firms (including those owned by banks) and finds little progress.

Daily120721.pdf…

29 11, 2021

Daily112921

Arezou Rafikian2023-05-23T14:49:44-04:00November 29th, 2021|2- Daily Briefing|

Global Regulators Tackle Key CCP-Resilience Challenge
Addressing ongoing concerns about CCP resilience when members default, the CPMI and IOSCO today consulted on CCP access and client-position portability, seeking views on new access models allowing clients direct access to CCP services and the effectiveness of porting practices. No new policy is proposed, with the discussion paper instead weighing benefits and risks to CCP access-and-portability options.

FRB-NY: Disasters Don’t Damage Bank Resilience
Although the Wall Street Journal today editorialized that a new FRB-NY paper absolves banks of climate risk, the actual paper does not do so. Instead, it concludes that one facet of climate risk – disaster-related physical damage to a bank or its customers – has not proved problematic since 1998. The paper looks at floods, fires, and similar events large enough to trigger a federal disaster declaration, concluding also that bank resilience appears to reflect both bank and market resilience, not resulting federal aid or intervention.

Powell Prepares for Confirmation-Focused Questioning
We will provide clients with in-depth reports as Chairman Powell testifies before Congress tomorrow and then again on Wednesday, but the testimony filed this afternoon makes it clear that Mr. Powell expects tough going as he prepares for confirmation.

Daily112921.pdf…

10 11, 2021

Daily111021

Arezou Rafikian2023-06-01T14:21:14-04:00November 10th, 2021|2- Daily Briefing|

Agencies End COVID-Related Servicer Flexibility

The Federal banking agencies, CFPB, NCUA, and state financial regulators today rescinded their April, 2020 joint statement providing supervisory and enforcement relief from certain timing requirements under the mortgage servicing rules.

Daily111021.pdf…

9 11, 2021

SYSTEMIC92

Arezou Rafikian2023-06-01T14:47:47-04:00November 9th, 2021|5- Client Report|

Fed Ramps Up Worries, Outlines Preferred MMF Option

Late yesterday, the Federal Reserve released its most recent financial-stability report. As in its predecessor earlier this year (see Client Report SYSTEMIC91), this report takes a cautious view, counting on continuing bank resilience to counteract old worries, such as asset-price bubbles, along with containing at least some new fears. These now include meme-driven equity market volatility, Chinese leveraged debt, and emerging-market fragility. In this report, we assess the policy implications of the Fed’s findings without going into detail on data or methodology. Surprisingly, in light of the recent FSOC report (see Client Report GREEN11), climate risk is now less of a high-profile Fed systemic concern, with the Board saying its planned actions are “broadly aligned” with FSOC recommendations. Perhaps the most concrete remedy outlined in the report pertains to MMF resilience, with the Fed reiterating its preference for some form of swing pricing, minimum balances at risk, and/or capital buffers.

SYSTEMIC92.pdf…

2 11, 2021

Daily110221

Arezou Rafikian2023-06-02T12:57:12-04:00November 2nd, 2021|2- Daily Briefing|

Global Regulators Set Anti-Greenwashing Standards
IOSCO’s board today issued a report targeting asset-management greenwashing. With this in hand, we expect the SEC soon to proceed on the like-kind ESG standards Chairman Gensler has prioritized as an action item (see Client Report INVESTOR19).

Gensler Reiterates Wide-Ranging Agenda, Push-Out Plans
As noted yesterday, the President’s Working Group on Financial Markets (PWG) was joined by the OCC and FDIC yesterday issuing a report calling for prompt Congressional action to regulate stablecoins and, even in its absence, also for fast action by federal regulators and the FSOC.

Senate LIBOR Bill Faces Partisan Dispute
Senate Banking’s hearing today on LIBOR transition led to the first public announcement of a Tester-Tillis bill akin to the Sherman measure (see FSM Report LIBOR6) along with a bipartisan consensus on the need for action, if not also on how to act. Chairman Brown (D-OH) said that he supports the as-yet-unintroduced bill, but that it must prevent what he called the willingness of big banks to use benchmarks to their own advantage.

Daily110221.pdf…

27 10, 2021

Daily102721

Arezou Rafikian2023-06-05T12:15:49-04:00October 27th, 2021|2- Daily Briefing|

Fed Seeks Views on Primary-Dealer Status for Spain
Providing a sharp reminder of the limits of national treatment, the FRB today sought comment on the treatment of U.S. sovereign-bond dealers in Spain prior to allowing a Spanish financial institution to become a primary dealer.

IOSCO Sets Tougher Resilience Standards
IOSCO today issued new outsourcing principles for the securities market, tightening them in the wake of the COVID crisis to reflect new operational-resilience concerns.

Fed Stands by LIBOR Hard Stop
Building on Acting Comptroller Hsu’s tough talk yesterday, FRB Senior Vice President Nathaniel Wuerffel today reiterated that new inter-agency guidance sets a hard stop not only on new LIBOR exposures at year-end, but also on additional or longer exposures under an existing contract.

FTC Turns Data-Security Screws
Continuing the Administration’s campaign to govern nonbank financial companies, the FTC today unanimously approved a new data-safeguards rule governing nonbank financial institutions. The rule

Daily102721.pdf…

26 10, 2021

Daily102621

Arezou Rafikian2023-06-05T13:54:59-04:00October 26th, 2021|2- Daily Briefing|

McWilliams Positions Herself as Crypto Liberal Among Agency Skeptics
In remarks posted this morning, FDIC Chair McWilliams provided an update on the inter-agency “crypto sprint.” Ms. McWilliams made it clear that her intent is not to prohibit bank crypto activities but instead to govern them, announcing that a series of policy statements will be issued in “coming months.”

U.S. Adds Voice to Health/Finance G20 Construct
The U.S. Treasury has now joined other G20 finance ministers in calling for a new forum coordinating health and finance policy. The proposal was sparked by an earlier report from former government officials such as Larry Summers based on the need to ensure that all national and global resources are prepositioned to prevent the next pandemic.

Global Regulators Tackle Margining, CCP Resilience
Advancing an FSB priority most recently emphasized in the Board’s forward-looking plan, the Basel Committee, IOSCO, and the Committee on Payment and Market Infrastructures today invited comment on additional margining standards addressing problems identified in the March 2020 COVID crisis.

House Advances Open-Source Regulatory Data
The House late yesterday passed 400-19 the Financial Transparency Act (H.R. 2989), legislation reintroduced by Reps. Maloney (D-NY) and McHenry (R-NC) requiring the federal financial regulatory agencies to adopt data collection-and-distribution standards on format, searchability, and transparency.

OCC Stands Firm on LIBOR Transition, Supervisory Priorities
In remarks generally focused on LIBOR transition, Acting Comptroller Hsu today emphasized that the U.S. agencies fully intend to end LIBOR and “zombie LIBOR” as of year-end and that even banks that think …

18 10, 2021

FedFin on: Global MMF-Reform Options

Arezou Rafikian2023-06-07T15:52:59-04:00October 18th, 2021|The Vault|

Global regulators have now finalized a framework on which national regulators may base the reforms they deemed necessary after the pandemic sparked profound disruptions in this sector. However, as with the FSB’s proposed approach, the final framework sets few parameters for jurisdictional action beyond a strong plea for action of some sort that would meaningfully address the redemption and/or liquidity risk the FSB continues to believe presents a threat to national and even global financial stability.

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

18 10, 2021

AL101821

Arezou Rafikian2023-06-07T15:56:15-04:00October 18th, 2021|3- This Week|

CRYPTO UNDONE

As Karen Petrou forecast, global and U.S. policy-makers have marshalled all the thinking over all the last few years into a deluge of new cryptoasset and cryptography standards already flooding all of your inboxes. Just last week, we provided you with…

AL101821.pdf…