#markup

29 02, 2024

DAILY022924

2024-02-29T16:41:41-05:00February 29th, 2024|2- Daily Briefing|

FSB Says Swiss Standards, Not Its Own, Led to CS Chaos

The FSB today released the review of Swiss GSIB regulation announced after Credit Suisse’s failure.

Basel Tackles Private Credit, GSIB Window-Dressing

The Basel Committee today again pressed nations – clearly here focusing on the U.S. – to finalize the end-game rules as quickly as possible.

FinCEN Releases New AML/CFT Hit List

FinCEN today emphasized that the new FATF report has revised countries where strategic AML and CFT measures are deficient, warning U.S. banks to take this into account – i.e., to ensure appropriate de-risking.

CFPB Targets Bank Comparison-Shopping Posts

The CFPB today loosed another attack on bank marketing practices, arguing that key facts are omitted  from credit-card and financial-product descriptions obscuring back-end fees.

Bipartisan HFSC Votes to Repeal SAB 121

At today’s abbreviated markup, HFSC took up H.J. Res. 109, which would repeal the SEC’s Staff Accounting Bulletin 121 requiring banks to keep custody cryptoassets on balance sheet (see FSM Report CUSTODY5).

HFSC Approves Secret Service Cybercrime Bill

As HFSC’s markup continued today, the committee turned to Rep. Fitzgerald’s (R-WI) bipartisan H.R. 7156 expanding Secret Service investigative authorities over cybercrime.

FSB Head Ratchets Up Stablecoin Systemic Worries

In remarks today, FSB Chair Klaas Knot discussed market developments in cryptoassets, suggesting that renewed market interest in stablecoins by bigtechs and financial institutions could have systemic implications.

Daily022924.pdf

9 11, 2023

DAILY110923

2023-11-09T17:11:08-05:00November 9th, 2023|2- Daily Briefing|

Bowman Outlines Capital-Comment Priorities

In remarks today, FRB Gov. Bowman reiterated many of her longstanding concerns regarding pending bank rules, going on now to lay out key points on which she believes comment are warranted on the capital standards.

OMB Now Demands Distributional Analytics

Following its order to federal agencies now to consider competitive-impact in regulatory assessments, OMB’s Office of Information and Regulatory Affairs (OIRA) today issued new standards also demanding distributional-impact analyses.  As Karen Petrou’s memo this week made clear, it is our view that these are singularly and unfortunately absent from those accompanying the recent spate of banking proposals.

HFSC Plans Sanctions Markup

As anticipated, HFSC is proceeding next Tuesday to mark up a raft of bills addressing Iran and broader sanctions questions.  Among the bills is one from Reps. Vargas (D-CA) and Hill (R-AR), H.R. 6245, to require Treasury to report on financial institution’s involvement with Iranian officials.

Daily110923.pdf

7 07, 2023

Al070723

2023-07-07T16:49:21-04:00July 7th, 2023|3- This Week|

The ESG Jihad

As anticipated, House Republicans have made July their “ESG month” with HFSC and other panels planning an array of actions culminating in an HFSC mark-up of as-yet-unintroduced legislation later this month.  Before writing this off as part of the GOP’s pre-election “culture-war” campaign, it’s worth remembering that the Democratic-controlled Senate still approved a House measure overturning Department of Labor ESG pension-investment rules; only a Presidential veto saved those rules and it might take more of them to counter what Republicans now have in store for the financial-services sector.

Al071023.pdf

21 06, 2023

DAILY062123

2023-06-21T17:19:57-04:00June 21st, 2023|2- Daily Briefing|

Waters Advances Post-SVB Proposals

HFSC Ranking Member Waters (D-CA) today released ten Democratic bills in response to recent bank failures, noting — as is indeed the case for at least some of these measures – that Republicans expressed interest in them at the last committee mark-up.   That said, today’s hearing with Chairman Powell (see forthcoming FedFin analysis) indicates that Republicans will launch a full-bore attack on higher bank-capital requirements.

Unusual Bipartisanship Advances Senate Clawback Bill

We will await text to determine the full impact of the bill approved today by Senate Banking, but the 21-2 vote makes it clear that it will have no trouble navigating the Senate floor unless more controversial riders are attached.  We doubt this will be the case given the clear intention on both sides of the aisle to agree on a viable approach to executive clawbacks, moving away from the Warren-Vance bill (see FSM Report COMPENSATION36) to give the FDIC discretion to preserve “white-knight” compensation and slightly limit the bill’s scope.

Schumer Lays Out Senate’s AI Approach

Kicking off a high-priority Senate action plan, Senate Majority Leader Schumer (D-NY) today laid out his AI framework dubbed the Safe Innovation Framework.  Acknowledging that Congress knows very little about AI and what regulation is needed, he did not indicate any specifics or timing on upcoming legislation beyond outlining the framework’s priorities.

Daily062123.pdf

24 04, 2023

DAILY042423

2023-04-24T17:07:25-04:00April 24th, 2023|2- Daily Briefing|

HFSC Mark-Up Renews CFPB Partisan Scuffle

Wednesday’s HFSC markup features only one bill pertaining to financial policy, rather than to capital formation: a bill yet to be introduced by Rep. Barr (R-KY) imposing longstanding Republican demands on the CFPB.  It would change the Bureau’s leadership to a five-member commission, create an independent Inspector General, and require the Bureau to consider how all proposed rules impact small businesses.

FRB-Chicago Sees Green for LMI Households, Branch Deserts for Blacks

Addressing the contentious question of urban bank-branch deserts, a recent Federal Reserve Bank of Chicago paper finds that LMI households have lower demand for branch services and thus use them less.  However, Black households have poor branch access even after controlling for income, with inaccessibility said to completely explain lower branch use compared to white households.  Neither LMI nor Black households use mobile or online banking in ways that offset the study’s findings, which are based on newly available geolocational data judged by complex models and data methodologies.

Daily042423.pdf

28 02, 2023

DAILY022823

2023-02-28T17:16:34-05:00February 28th, 2023|2- Daily Briefing|

CFPB Treads Gingerly on Mortgage-Disclosure Exceptions

In a notice emphasizing the CFPB’s distaste for allowing regulatory exceptions, the Bureau asks for comment on an application for one to which it seems a bit more sympathetic.

FDIC Sees Sunny Side of Bank Earnings Data

In its review of banking-industry fourth-quarter results, the FDIC today notes a sharp increase in the gap between bank loan yield and deposit interest costs.

Basel Forecasts End-Game Capital Shortfalls

The Basel Committee today issued its latest monitoring report, finding that large global banks saw capital decreases to pre-pandemic levels even as liquidity ratios continued to improve.

Bipartisan China Bills Fly Through HFSC Markup

As anticipated, HFSC today reported five bills to censure China and protect Taiwan, along with bills addressing drug-trafficking financing, biomedical security and bank service company examinations.

Democrats Stand Firm versus Privacy Preemption

Following an orderly and bipartisan start to today’s HFSC markup, Democrats and Republicans today came to verbal blows over the Chairman’s data privacy bill.

Daily022823.pdf

24 02, 2023

Al022723

2023-02-24T16:57:09-05:00February 24th, 2023|3- This Week|

The Bull In China’s Shop

As we noted as Russia sanctions were introduced almost exactly a year ago and again on Friday, the U.S. is using  this “soft-power” tool not only to punish Russia for invading Ukraine, but also to deter other nations – and most especially China – from going beyond rhetorical to military support.  This, combined with the subsequent oil-price cap, has kept most neutral nations on the military sidelines, also forcing China to navigate carefully between anti-Taiwan bellicosity and pro-Russian sympathy.  However, China has now gone beyond floating the spy balloon that so peeved Members of Congress at an earlier hearing at which sanction sabers were noisily rattled.  The House Financial Services Committee will mark up the mildest of its sanctions bills on Tuesday, but China is now in full-throated alliance with Russia, possibly soon sending it armaments and other essentials in express violation of current G7 sanctions.  What’s next?

Al022723.pdf

24 02, 2023

DAILY022423

2023-02-24T16:55:41-05:00February 24th, 2023|2- Daily Briefing|

HFSC Starts With A Bang

On Tuesday, HFSC Chairman McHenry (R-NC) honors his commitment to advance significant legislation with what is sure to be a raucous mark-up.  Most importantly, Chairman McHenry will bring up a bill yet to be introduced rewriting consumer-data privacy standards.

FHFA New-Product Vetting Delayed

FHFA today pushed back the effective date of its New-Product Rule by sixty days on grounds that more time is needed for the agency and the GSEs to develop the internal processes necessary for compliance.  The former effective date was February 27; the new effective date is April 28.

HFSC Set To Lock Horns On Data Privacy

With the opening quote in his release making clear that this will be a partisan fight, HFSC Chairman McHenry (R-NC) formally introduced the privacy legislation that, as noted earlier today, is now set for Tuesday’s mark-up.

CFPB Begins Administrative Adjudication, Speeding Enforcement Actions

The CFPB today finalized new adjudication rules that add administrative adjudication to its usual course of seeking redress in federal district courts.  The agency argues that predecessors from which Dodd-Frank drew its responsibilities use administrative adjudication and it is thus within the CFPB’s purview now also to do so.

Daily022423.pdf

1 02, 2023

DAILY020123

2023-02-01T16:53:57-05:00February 1st, 2023|2- Daily Briefing|

CFPB Set To Quash Credit-Card Late Fees

Taking action as anticipated following its June ANPR (see FSM Report CREDITCARD35), the CFPB today released an NPR that would curtail credit card late fees the Bureau calls “excessive,” moving ahead also with one aspect of the White House competition agenda.

Comment Deadline Set For CFPB Contract Registry Proposal

The Federal Register today includes the CFPB’s form-contract registry proposal.  As noted (see FSM Report CONSUMER48), the Bureau’s NPR would establish a public registry requiring nonbanks to post contract provisions which the agency believes threaten consumer legal or free-speech rights.

Brown, Democrats Press Thompson On Enterprise Loan Sale Programs

Ahead of a housing hearing as soon as next week, Senate Banking Chairman Brown (D-OH) and four other Democrats today sent a letter to FHFA Director Thompson requesting a review of Fannie and Freddie’s nonperforming and reperforming loan-sales programs.

McHenry Confirms Privacy, Crypto Priorities; Rewrites HFSC Rules

At an HFSC organizational meeting, Chairman McHenry (R-NC) today emphasized that he wants to work with Democrats, but much of what he said is unlikely to facilitate this.  For example, he noted with regard to crypto legislation that he wants to end the SEC’s enforcement-focused policy; as previously noted, any crypto legislation curtailing the SEC will run afoul of Democratic views in both the House and Senate.

Daily020123.pdf

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