Now What?
As detailed in our reports earlier this week on Powell’s appearance before Senate Banking and HFSC, much was said about the pending rewrite of big-bank capital standards. As we’ve noted, this matters a lot to the comparative advantage of GSEs, nonbank mortgage players, and banks large and small. As a result, we here go in depth on what Powell said – and mostly didn’t – about what’s next on these critical standards.
Senate Banking GOP Demand CFPB Recant, Retreat, Redo
All Republican members of the Senate Banking Committee today sent CFPB Director Chopra a scathing letter challenging his legal authority to undertake many recent actions. The letter specifically cites what it calls the Bureau’s “smear campaign” against banks offering optional overdraft services, calling its February list of the top 20 banks by revenue from overdraft fees an abusive “name-and-shame” tactic.
OFAC Eases Implementation of Oil Price-Cap Sanctions
As anticipated, OFAC late Friday issued initial guidance to banks and insurers on Russian oil price-cap compliance. Although OFAC plans to follow this guidance with a more comprehensive statement and a “red-flag” advisory, it now makes clear that banks and insurers will not be liable for price-cap violations related to their financing or coverage if the financial company has no independent knowledge of the actual price and reasonably relied on a customer’s attestation.
Fed Study: Credit Profitability Depends on NIM
At a time when credit-card rates reached a quarter-century high, the Fed has released a staff study using new data to conclude that card interest rates are by far the most important source of issuer profitability. The study decomposes credit-card income into component parts (interchange fees, interest charges, and consumer fees) with interest-rate revenue accounting for eighty percent of card profitability at the largest bank issuers.
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.…