#repeat offenders

11 07, 2023


2023-07-11T16:38:06-04:00July 11th, 2023|2- Daily Briefing|

FRB-NY Staff: Climate Tradition Risk Meaningful, Manageable

new blog post from Federal Reserve Bank of New York staff concludes that climate-transition risk in bank loan portfolios is meaningful, but also manageable.  The paper uses general-equilibrium models to focus on forward-looking climate risk in scenarios based on current policy as well as orderly and disorderly transitions, an approach it believes differ from much retrospective analysis of carbon emissions as a measure of transition risk.

CFPB, OCC Team Up To Sanction BofA Transaction, Card Account Practices

The CFPB and OCC today took action against Bank of America in ways that renew questions about potential overlaps between the CFPB’s jurisdiction and that of the banking agencies.  The costlier of the two actions from the CFPB ordered the bank to pay over $170 million in civil monetary penalties and restitution for a range of practices the Bureau regards as abusive and deceptive (see FSM Report CONSUMER39).

GOP Urges Supreme Court to Uphold Fifth Circuit CFPB Decision

Continuing the GOP’s longstanding campaign to redesign the CFPB, HFSC Chairman McHenry (R-NC), Senate Banking Ranking Member Scott (R-SC), and 130 Members of Congress filed an amicus brief today urging the Supreme Court to uphold the Fifth Circuit’s decision declaring the CFPB’s funding mechanism unconstitutional.


7 07, 2023


2023-07-07T16:47:33-04:00July 7th, 2023|2- Daily Briefing|

House Judiciary Joins GOP Asset-Manager ESG Attack

Continuing the GOP campaign against ESG, House Judiciary Chairman Jordan (R-OH) and Reps. Massie (R-KY) and Bishop (R-NC) sent letters late yesterday to the leadership of BlackRock, Vanguard, State Street Global Advisers, the Glasgow Financial Alliance for Net Zero, and the Net Zero Asset Managers initiative, claiming that what they call “collusive agreements” violate antitrust law.

FRB-KC: Farm Credit System Mergers May Influence Ag-Bank Portfolio Strategy

New research from Federal Reserve Bank of Kansas City staff concludes that, while Farm Credit System mergers over the past twenty years had relatively minor effects on agricultural-bank profitability and efficiency, they may have altered bank portfolio decisions with broader implications both for banks and the communities they serve.

CFPB, Treasury, HHS Launch Interagency Inquiry Into Medical-Payment Products

As part of the White House initiative to address medical-sector “junk fees” and consumer protection, the CFPB today was joined by HHS and Treasury in issuing an RFI on high-cost specialty financial products it says harm medical patients by driving up debt.

FHFA Joins Repeat-Offender Crackdown

Acting on the “repeat-offender” crackdown initiated by the CFPB and recently picked up by the OCC, FHFA today issued a proposed rule that would revise its Suspended Counterparty Program (SCP) regulation to authorize FHFA to immediately suspend business between the GSEs and counterparties who are found to have committed civil or criminal misconduct in connection with real property management or ownership.


27 02, 2023


2023-02-27T16:39:49-05:00February 27th, 2023|2- Daily Briefing|

FRB-NY:  CRA Now Makes No Measurable Difference

As the banking agencies wrestle with their still-unfinished CRA rule (see FSM Report CRA32), the Federal Reserve Bank of New York today released a staff report concluding that the law has little to no impact on like-kind household credit in target areas.  Using data available only to the Fed, the report finds that banks largely meet CRA in target areas by acquiring existing mortgage loans, not making new ones.

SCOTUS Re CFPB Has Broad Ramifications

In a case with significant implications not only for the CFPB, but also other financial agencies, the Supreme Court today agreed to review the Fifth Circuit’s decision invalidating CFPB funding via transfers from the Federal Reserve’s income rather than annual Congressional appropriation.

CFPB Puts A Repeat Offender Out Of Business

Wielding the hammer Director Chopra claimed when he announced his campaign against repeat offenders, the CFPB today used the powers it argues derive from its authorizing law (see FSM Report CONSUMER14) to put a nonbank mortgage lender out of business.  In this case, RMK Financial was found to have persistently violated a 2015 agreement under consumer-finance laws and rules to mislead veterans about the terms of their VA and FHA mortgages.


12 12, 2022


2022-12-12T17:13:47-05:00December 12th, 2022|2- Daily Briefing|

FTX Hearings Promise to be Explosive but Preliminary

Our review of HFSC’s final staff memo for tomorrow’s FTX hearing confirms our forecast that it will be a lengthy, contentious affair at which Sam Bankman Fried will be raked over the coals after current management that has already excoriated him completes its testimony.  We will monitor this hearing as well as Wednesdays before Senate Banking, but we expect that policy and political implications will come clear only after Members of Congress have finished attempting to score points specific to FTX.

HFSC Previews Chopra Hearings

In addition to high-profile crypto hearings, both HFSC and Senate Banking will also have lively sessions with CFPB Director Chopra later this week as he presents his agency’s semi-annual report.

CFPB Again Targets Repeat Offenders in Nonbank Registry Proposal

Taking another shot at repeat offenders, the CFPB today proposed requiring certain nonbank financial firms to report any agency or court orders, which would then be incorporated in a public data registry to create a comprehensive and easily accessible information equivalent to that readily to be found on banking organizations.  Larger, supervised nonbanks will also be required to designate a senior executive to provide a written attestation of the firm’s compliance with covered orders.


2 05, 2022


2023-03-01T14:43:25-05:00May 2nd, 2022|2- Daily Briefing|

IMF Urges Strict Public-Bank Controls

The IMF today took strong issue with the concept of public banks, concluding that deposit-taking public banks directly competing with private banks should be subject to the same rules and supervision as private banks.  As we have noted, progressives in the U.S. have proposed various forms of public banks at the federal and state level, but only a few of these have advanced.

CFPB Report Highlights Violations re Mortgage Origination, Deposits, Credit Cards, Remittances

Today the CPFB issued its Supervisory Highlights report, highlighting issues the agency is now prioritizing.  These pose significant risk not only for companies clearly under the CFPB’s jurisdiction (see FSM Report CONSUMER39), but also for nonbanks that considered themselves exempt (see FSM Report CONSUMER41).


26 04, 2022

FedFin on: Chopra Stands His Ground on Sweeping Agenda, Administrative Process

2023-03-01T15:52:51-05:00April 26th, 2022|The Vault|

The Senate Banking Committee’s hearing today with CFPB Director Chopra was a sharply partisan session with little immediate impact on what Mr. Chopra plans to do to achieve his sweeping new vision.  Although the debate will have little to no impact on bank-merger policy, much of the session focused on the actions Mr. Chopra took in concert with Acting Chairman Gruenberg to wrest FDIC control from former Chair McWilliams and issue an RFI suggesting significant changes to both merger analytics and bank-resolution policy…

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

25 04, 2022


2023-03-01T15:58:11-05:00April 25th, 2022|2- Daily Briefing|

HFSC Revs Up Repeat-Offender Legislation

As anticipated, the HFSC memo ahead of its hearing on Wednesday with CFPB Director Chopra covers a wide range of issues, actions, and CFPB priorities.  The memo also lists many bills pending in the House that touch on the CFPB, but, importantly, also announces a new draft measure to mandate that the banking agencies not only join the CFPB in its campaign to sanction large “repeat offenders”, but also stipulates stiff penalties in such cases based in part on a longstanding measure from Chairwoman Waters (D-CA) to break up “megabanks” found to have repeat compliance failures (see FSM Report GSIB11).

CFPB Claims Expansive Authority over Nonbank Consumer-Finance Companies

Invoking what it describes as “dormant” authority, the CFPB today announced that it will extend its supervisory authority to nonbanks such as fintechs now not expressly covered by its procedures, doing so also for any nonbank consumer-finance company reasonably found by the Bureau to pose consumer risk.

FRB-PHL Finds Worrisome Signs of Mortgage Risk

The Federal Reserve Bank of Philadelphia today announced a monthly survey of mortgage-market risk, concluding in its first analysis that foreclosure rates are in moderate bounds but significant risk pockets are concerning.  These include the fact that the Black past due rate is 6.9 percent compared to three percent for whites.


22 04, 2022


2023-03-01T16:02:32-05:00April 22nd, 2022|3- This Week|

Recidivist Witness Tackles Repeat Offenders

Later this week, CFPB Director Chopra will appear at what are sure to be acrimonious sessions before the House Financial Services and Senate Banking Committees.  Laying some pipe ahead of time, Mr. Chopra joined New York’s AG in taking action against another firm he characterized as a “repeat offender,” tracking rhetoric in a prior “repeat-offender” suit but not – at least so far – trying to drive these firms out of business.  We expect this repeat-offender initiative to be one focus of Mr. Chopra’s testimony and perhaps also a topic on which Chairwoman Waters (D-CA) will engage to highlight her longstanding effort to punish non-compliant “megabanks” (see FSM Report GSIB11).  These hearings will, though, witness far more than a few more notches on Mr. Chopra’s belt.  The hearing thus will focus on hot-button issues such as student lending, medical debt, and the employer practices highlighted in Member posts late last week.


21 04, 2022


2023-03-02T10:35:34-05:00April 21st, 2022|2- Daily Briefing|

G20 Ministerial Ends in Disarray

The G20 finance ministerial yesterday was chaotic in ways not captured even by the public walk-out to protest Russia’s invasion well highlighted in recent media coverage.  In fact, the ministerial failed to result in even the usual bland communique that summarizes discussions and details agenda items in increasingly general and non-binding terms.

CFPB Pursues Another “Repeat Offender” with Court Action

Continuing the CFPB’s commitment to tackle “repeat offenders”, the Bureau and New York Attorney General today filed a suit against MoneyGram alleging that the company – despite prior enforcement actions – stranded customers waiting for their money, botched error-resolution instructions, and lacked policies and procedures to ensure compliance.

Powell Ducks Globalization Debate

At a debate session today during the IMF annual meeting, Chairman Powell reiterated prior statements on monetary policy, for example that a fifty basis point rate hike may be appropriate, a point reinforced by his comment that the U.S faces higher core inflation than the E.U. even though the E.U. has higher price increases in food and energy costs.


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