#Smith – Federal Financial Analytics

6 07, 2023

DAILY070623

Eliza Allen2023-07-06T16:55:22-04:00July 6th, 2023|2- Daily Briefing|

Basel Redesigns Global Bank-Supervision Construct

As promised at its last meeting, the Basel Committee today released a public consultation on revisions to its 2012 core supervisory principles (see FSM Report REFORM92).

Accommodative CRE Policy Goes Live

Publication in the Federal Register today makes effective a finalized policy statement issued by the banking agencies and NCUA late last week on how financial institutions are to handle troubled commercial real estate (CRE) loans.

Senate Dems Demand CFPB Voice-Cloning Action

Following his letter to large bank CEOs regarding AI fraud, Chairman Brown (D-OH) along with Sens. Menendez (D-NJ), Reed (D-RI), and Smith (D-MN) today sent a letter to Director Chopra urging action against AI-related financial scams.

FSB Turns to GSIB Resolvability

The FSB’s plenary today announced that recent events have spurred it to assess the resolvability of GSIBs and other large banks, providing neither timeline nor focus for this work.

FRB-NY Study Advances Wholesale Digital Currency

Although making clear that it sets no new policy nor endorses any CBDC action, the Federal Reserve Bank of New York’s Innovation Center published a DLT proof-of-concept finding that shared ledgers can effectively support both wholesale domestic interbank and cross-border payments.

Daily070623.pdf…

9 12, 2022

Al121222

Eliza Allen2022-12-09T16:52:30-05:00December 9th, 2022|3- This Week|

Crypto Countdown

Crypto week will kick off Tuesday with an early-morning Peterson Economic Institute seminar at which Managing Partner Karen Petrou will preview not just two days of big box-office hearings, but also the outlook for bank regulation in the wake of growing Congressional interest into what the agencies knew, when they knew it, and why they appear to have done nothing about numerous risks with far-reaching policy impact if not also cost to the FDIC – see Karen Petrou’s last memo for who’s involved and what’s at risk as well as the letter sent late last week by Sens. Warren (D-CA) and Smith (D-NH) picking up on it. We will of course be watching and then analyzing the House and Senate hearings featuring FTX. We know already that both sessions will be a wild ride into territory of considerable danger for Sam Bankman Fried likely of little consequence to the broader policy questions roiling the future of cryptoassets and the actual action Congress and key agencies will take to define it.

Al121222.pdf…

8 12, 2022

DAILY120822

Eliza Allen2022-12-08T17:14:56-05:00December 8th, 2022|2- Daily Briefing|

Comment Deadline Set For Fed’s Climate-Risk Management Principles

The Federal Register today includes the Fed’s comment request on proposed climate risk-management standards that would guide banking organizations with assets over $100 billion (see FSM Report CLIMATE15).

Basel: Climate Risk Not Ready for Capital Requirements

The Basel Committee today published a clarification by way of FAQs to its recently-finalized climate-risk management principles (see FSM Report CLIMATE14).

Warren, Smith Turn FTX Spotlight on Banking Agencies

As predicted in Karen Petrou’s memo on Monday, Congressional interest has now turned to the role of banks and their regulators in the FTX debacle.

FSB Heightens Focus on CCP, Insurer Resolvability

After over at least a decade of talking about nonbank resolvability, the FSB today announced that addressing it has become an “urgent” priority.

OCC’s Risk Inventory Continues To Target Deposit, Operational, Climate, Crypto Risk

As with its June 23 report on bank risks, the OCC’s December inventory reiterates concerns such as deposit outflow due to rate hikes, operational risks due to cyber-threats and third-party relationships, and compliance and credit risks.

Warren, Smith Back DOL Disqualification Proposal

Tackling yet another “big-bank” concern, Sens. Warren (D-MA) and Smith (D-MN) sent a letter today applauding the Department of Labor’s Employee Benefits Security Administration (EBSA) proposal to disqualify banks found guilty of criminal misconduct from being qualified professional asset managers.

Daily120822.pdf …

17 03, 2022

SANCTION17

Arezou Rafikian2023-04-03T14:38:13-04:00March 17th, 2022|5- Client Report|

Targeted Digital-Asset Standards Possible in Senate

The Senate Banking Committee’s hearing today on illicit finance focused as expected on cryptocurrency and suggests that targeted legislation addressing specific jurisdiction or compliance issues might advance on a bipartisan basis. Sen. Warren (D-MA) is, though, seeking a much broader bill. Joined by other panel Democrats but not Chairman Brown (D-OH), the bill would expand the reach of current sanctions to certain foreign firms, increase the President’s sanction power in this sector, and — most controversially — demand public reports on troublesome firms and individuals. Ranking Member Toomey (R-PA) made it clear that he is not prepared to go this far, reiterating longstanding views that digital assets enhance innovation and should be more widely used in the U.S. to ensure global leadership in a fast-growing sector.

SANCTION17.pdf…

14 02, 2022

DAILY021422

Eliza Allen2023-04-04T16:02:06-04:00February 14th, 2022|2- Daily Briefing|

Gensler Stands by Climate-Risk Disclosures
In a Twitter thread this weekend, SEC Chairman Gensler pushed back at Sen. Warren’s (D-MA) criticisms that the Commission is moving too slowly on climate-risk disclosures.

Renew Attack on ERISA Waivers
Joined by Sen. Tina Smith (D-NH), Sen. Warren (D-MA) has renewed a longstanding Democratic demand that the Department of Labor deny ERISA waivers to large banks found to have engaged in illegal or unethical behavior.

SEC Wins a Big One
Making it clear that, despite GOP pushback, the SEC can and will go after crypto products, the Commission today reached a high-profile, multi-million dollar settlement with BlockFi Lending LLC that essentially prohibits its lending products and, by inference, any others unwilling to undergo protracted litigation leading to still more costly sanctions.

Hsu Targets Bank LMI Lending for CRA Push
In remarks today, Acting Comptroller Hsu stated that, while banks have done considerably better by LMI communities in recent years, deep gaps remain that, at least for Black households, may now be worse than ever.

Daily021422.pdf…