2023-05-05T12:26:40-04:00May 4th, 2023|2- Daily Briefing, Uncategorized|

Brown Reiterates Calls for Expanded Clawbacks, Tougher Bank Regs

As a precursor to upcoming hearings, Chairman Brown (D-OH) laid out his legislative priorities at today’s poorly attended Senate Banking hearing.

Brown Seeks Data On Big-Bank Voice Authentication

Senate Banking Chairman Brown (D-OH) today asked selected big banks for information on voice authentication system security, highlighting AI risks. Citing consumer data security concerns, he also asks how the banks store voice data and if it is shared with third parties. Responses are due by May 18.

Chopra Demands New Resolution Policies

In remarks today, CFPB Director Chopra took strong issue with the FDIC’s decision to sell FRC to JPMorgan, arguing that the law not only mandates a least-cost resolution, but also one that addresses financial stability and other risks. He did not indicate if this transaction was approved over his objection, stating instead that he wants quick action to finalize the agency’s pending merger standards to ensure that future resolutions are feasible without similar acquisitions. This could be accomplished also via making more use of authority under law with regard to living wills to, for example, force divestitures when a bank’s condition begins to falter. The CFPB is also looking at any authority it might have to reduce big-bank risk. He also indicated that the Bureau will use its “dormant authority” to mandate open banking, not saying how this relates to its pending data-rights rule.