13 04, 2022


2023-03-02T11:20:39-05:00April 13th, 2022|2- Daily Briefing|

CFPB Pursues Overdraft/NSF Fees

Venturing Doggedly pursuing its anti-overdraft campaign despite acknowledging industry concessions, the CFPB today published a list of banks deriving the most revenue from NSF/overdraft fees; a chart also names the banks that have or plan to eliminate these fees.

Toomey Pushes Back on SEC MMF Proposal

Issuing the first official Congressional statement on the SEC’s MMF proposal (see FSM Report MMF19), Ranking Member Toomey (R-PA) today argued that the proposal too narrowly prescribes how MMFs must operate, urging the SEC to broadly authorize MMFs to determine how to ensure their own resiliency.

Senate GOP Readies Objections to Gruenberg Appointment

Doubtless laying pipe should the White House nominate Acting Chairman Gruenberg to serve again as FDIC chairman, Senate Banking Committee Ranking Member Toomey (R-PA) and Sen. Scott (R-SC) today sent a letter to Mr. Gruenberg raising concern about allegations of racial discrimination during Mr. Gruenberg’s previous term as Chairman.

IMF: Faltering Banks Need New Rules along with Fintech, DeFi

The IMF today published a blog post on the rapid growth of fintech and DeFi, focusing on issues of concern to regulators and supervisors. One top-priority risk is, though, to legacy banks, which the post’s authors do not believe are quickly adapting to changing technology and new competitors and thus may also need more stringent prudential standards as their franchises become unsustainable.


10 02, 2022


2023-04-05T09:57:51-04:00February 10th, 2022|2- Daily Briefing|

KC Fed: 2020 Capital-Distribution Constraints Worked
Touching on a subject of considerable sensitivity as well as a policy issue subject to change under a new Fed, the Kansas City Federal Reserve Bank has released a study arguing that 2020’s limits on capital distributions contributed to greater systemic resilience.  The paper tracks both share buy-backs and dividends over recent years, noting that GSIBs often distributed more than their income.  Repurchases succeeded dividends as the principal capital-distribution medium since the great financial crisis, a shift found to give banks more flexibility to adjust distribution levels without significant investor backlash.

FHFA Leads Way on U.S. AI/ML Standards
FHFA today issued the first U.S. financial-agency supervisory guidance on AI/ML use by Fannie Mae, Freddie Mac and Common Securitization Solutions (not also the FHLBs).  This goes well beyond the 2020 RFI released so far by the banking agencies (see FSM Report AI), with the standards also reflecting FHFA’s new equity focus in supervisory guidance specific to inclusive considerations.

Toomey Takes on the Entire Reserve-Bank System
In remarks today, Senate Banking Ranking Member Toomey (R-PA) heightened his critique of the Federal Reserve’s regional banks, suggesting that the System needs a sweeping overhaul.

CFPB Assesses Overdraft-Fee Marketplace
Reflecting the CFPB’s continuing critique of overdraft fees (see FSM Report CONSUMER38), the Bureau today posted a chart of overdraft and NSF fees at the largest banks, calling recent changes “encouraging.”  However, the release does not retract recent allegations about their anti-consumer or -competition impact, …

1 02, 2022


2023-04-05T14:14:55-04:00February 1st, 2022|1- Financial Services Management|

“Fair-Fee” Policy

Taking action to advance President Biden’s competition order, the CFPB is seeking views on fees which it believes exploit consumers by virtue of unfair competition.  Although many of the fees it cites are covered by statutory disclosure regimes designed to ensure both front- and back-end fee transparency, the Bureau believes that many of these fees are unfair due to large-bank market power.  Unfairness is in part judged by the extent to which a fee exceeds the provider’s marginal cost with some recognition of possible risk, but how much of a profit margin above these break-even thresholds is neither specified nor discussed.


1 02, 2022

FedFin: “Fair-Fee” Policy

2023-04-05T14:22:57-04:00February 1st, 2022|The Vault|

Taking action to advance President Biden’s competition order, 1 the CFPB is seeking views on fees which it believes exploit consumers by virtue of unfair competition. Although many of the fees it cites are covered by statutory
disclosure regimes designed to ensure both front- and back-end fee transparency, the Bureau believes that many of these fees are unfair due to large-bank market power.

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

1 12, 2021


2023-05-23T14:07:25-04:00December 1st, 2021|2- Daily Briefing|

FRB-NY Staff Assess CBDC Mission Impact
With Chairman Powell yesterday reiterating that the Fed will soon seek views on CBDC (see Client Report FEDERALRESERVE64), the New York Fed’s blog post today is a timely assessment of whether central-bank digital currency advances core central-bank missions.

CFPB Launches Anti-Overdraft, Pro-Portability Campaign
In concert with a new CFPB report, CFPB Director Chopra today announced that the Bureau will soon limit overdraft and NSF fees and undertake an array of other reforms to retail banking.

FFIEC Tackles New AML Priorities
Rec The FFIEC today released a significant rewrite of their BSA/AML examination manual, stressing not only an array of new priorities, but also recognition that current standards have unintentionally but often decisively encouraged derisking.


31 08, 2021


2023-09-18T15:44:05-04:00August 31st, 2021|1- Financial Services Management|

Overdraft-Fee Restrictions

Senior Senate Democrats have proposed legislation that would sharply restrict most transaction-account overdraft fees to the point of likely eliminating them for most consumers at most depository institutions.  Non-sufficient-fund (NSF) charges would be similarly constrained and, where fees are allowed, transaction-posting procedures would make it impossible for consumers to pay multiple fees over several days even in the event of a small overdraft.  This could provide significantly-increased consumer protection from nuisance and even predatory charges, but also make it harder for some consumers to handle urgent expenses without resorting to high-cost providers of short-term loans so far largely outside the reach of federal regulation.


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