#Manchin – Federal Financial Analytics

17 03, 2022

DAILY031722

Eliza Allen2023-04-03T14:33:52-04:00March 17th, 2022|2- Daily Briefing|

Fed, FHFA Leadership Advance

As anticipated last night, the Senate Banking Committee yesterday advanced all the Fed nominations and that of Sandra Thompson as FHFA director. However, Lisa Cook’s nomination was tied on a strictly partisan basis, meaning that it was not approved by Senate Banking but is nonetheless discharged to Senate Majority Leader Schumer (D-NY).

HFSC Hikes Array of Anti-Russia Sanctions

In the first of a series of markups, HFSC today approved 5 bills ramping up sanctions against Russia and Belarus. The most controversial of them, H.R. 7080 (Waters, D-CA), would broaden FinCEN’s ability to obtain information about the transactions of Russian oligarchs in the US.

Chopra Uses Rate Hike to Press Competition Inquiries

Describing the CFPB as “the arm of the Federal Reserve System that is fully focused on consumers,” Director Chopra today issued a statement following yesterday’s rate hike.

Senate Democrats Take Turns Whacking Wells Fargo

Senior Democrats today took sharp issue with Wells Fargo’s refi lending, asserting it was discriminatory and seeking an array of data from the bank and action by federal agencies. Senate Banking Chairman Brown (D-OH), Majority Whip Durbin (D-IL), and other senators called on HUD and the CFPB to investigate findings in a recent Bloomberg story, confining their comments to a general attack on discrimination without setting a date for a reply or any specific matters the agencies are to review.

Daily031722.pdf…

15 03, 2022

DAILY031522

Eliza Allen2023-04-03T14:45:47-04:00March 15th, 2022|2- Daily Briefing|

House Readies Still Tougher Sanctions

Thursday’s HFSC mark-up will advance a series of bills ramping up sanctions designed as amendments to the omnibus legislation advancing through Congress to punish Russia and targeted allies. We expect all these bills to pass by wide margins, with additional measures added after tomorrow’s speech from Ukraine’ president; we will provide clients with an in-depth report of the mark-up and other actions related to financial markets.

What’s Next at the Fed

As anticipated, Sarah Bloom Raskin has reportedly withdrawn her nomination following indication from Sen. Manchin (D-WV) and two moderate Republicans that they will oppose her confirmation. Although this might clear the nominations of Chairman Powell, Gov. Brainard, Lisa Cook, and Phillip Jefferson, this will occur only if Chairman Brown (D-OH) is willing to sacrifice leverage over the next nomination for the supervision vice chair.

More on What’s Next for the Fed

President Biden’s statement today on Ms. Raskin’s withdrawal clarifies the outlook detailed in our alert earlier this afternoon. After praising the nominee, the president urges the Senate to quickly confirm Mr. Powell, Ms. Brainard, Ms. Cook, and Mr. Jefferson.

Daily031522.pdf…

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…

14 03, 2022

Al031422

Arezou Rafikian2023-04-03T15:12:45-04:00March 14th, 2022|3- This Week|

A FULL-FORCE CRYPTO CRACKDOWN

Spurred in part by the critical role cryptocurrency is playing in the Ukraine crisis, the Biden Administration last week finalized a long awaited “whole-of-government policy construct (see Client Report CRYPTO26) with far-reaching, immediate implications not only for the Executive-Branch agencies that must now do as they are told, but also the more-or-less independent banking agencies that will try to make the White House as happy as possible. Touching on another key question — who has payment-system access — the Fed last week revised its 2021 proposal with a replacement request for comment (see FSM Report PAYMENT24) that now opines just a bit more on which companies will get the most scrutiny if they seek Reserve Bank master accounts and services.

Al031422.pdf…

21 02, 2022

Al022122

Arezou Rafikian2023-04-04T15:44:10-04:00February 21st, 2022|3- This Week|

Chicken Games

It’s no longer news that Senate Banking’s Republicans last week boycotted confirmation votes for the Administration’s full slate of Federal Reserve nominees along with that for FHFA Acting Director Thompson. Although the tactics are striking, Republican objections aren’t — we forecast these well before the voting (see Client Report FEDERALRESERVE66) and see nothing thereafter to change our prediction that — while certainly possible — it would prove difficult for the White House to advance Ms. Raskin’s appointment as Vice Chair for Supervision. Our updates last week also predicted that each side would dig in its heels not just on Ms. Raskin, but also on whether Democrats would split the slate so all but her appointment could advance. What’s next?

Al022122.pdf…

13 01, 2022

FEDERALRESERVE68

Arezou Rafikian2023-04-24T15:39:54-04:00January 13th, 2022|5- Client Report|

Brainard Navigates Troubled Waters; Looks Like Smooth Sailing for Thompson

At today’s confirmation hearing, Gov. Brainard took a lot of the heat on inflation Republicans only mildly mentioned during Mr. Powell’s Tuesday confirmation hearing (see Client Report FEDERALRESERVE67). As we anticipated (see Client Report FEDERALRESERVE66) this reflects the fact that the GOP is united in opposition to her appointment as Fed vice chair; should she hold Sen. Manchin (D-WV) she will be confirmed; if not, perhaps not. Ranking Member Toomey (R-PA) also used the occasion to signal – again unsurprisingly – GOP opposition should Sarah Bloom Raskin be nominated as the Fed’s supervisory vice chair.

FEDERALRESERVE68.pdf…

13 01, 2022

FedFin on: Brainard Navigates Troubled Waters; Looks Like Smooth Sailing for Thompson

Arezou Rafikian2023-04-24T15:40:10-04:00January 13th, 2022|The Vault|

At today’s confirmation hearing, Gov. Brainard took a lot of the heat on inflation Republicans only mildly mentioned during Mr. Powell’s Tuesday confirmation hearing (see Client Report FEDERALRESERVE67). As we anticipated (see Client Report FEDERALRESERVE66) this reflects the fact that the GOP is united in opposition to her appointment as Fed vice chair; should she hold Sen. Manchin (D-WV) she will be confirmed; if not, perhaps not. Ranking Member Toomey (R-PA) also used the occasion to signal – again unsurprisingly – GOP opposition should Sarah Bloom Raskin be nominated….

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

10 01, 2022

FEDERALRESERVE66

Arezou Rafikian2023-04-25T14:19:06-04:00January 10th, 2022|5- Client Report|

FedFin Assessment: Powell, Brainard Confirmations Confront Challenges

Many of you have asked us to forecast key policy implications ahead of two high-powered hearings this week considering President Biden’s top Fed nominees. We will as usual provide clients with in-depth analyses after the Senate Banking Committee ponders Chairman Powell’s nomination for a second term on Tuesday and Gov. Brainard’s to become vice chair on Thursday. Now, we explain why we think Mr. Powell’s confirmation chances – while still good – are not the slam-dunk many media sources suggest and why Gov. Brainard also faces a challenging outlook. We will not consider the odds that an appointment in the next few days of Sarah Bloom Raskin as vice chair for supervision will alter the political calculus except to say that the last time the White House tried this Sen. Warren (D-MA) didn’t budge. We don’t expect she will this time. This report does not consider other pending nominations to join the Board of Governors because none of them are likely to affect policy debate except when it comes to demands for greater Fed diversity.

FEDERALRESERVE66.pdf

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