20 09, 2022


2022-09-27T16:49:38-04:00September 20th, 2022|2- Daily Briefing|

FedFin Assessment: Tales of a New TLAC

With press reports strongly suggesting that U.S. banking agencies will impose TLAC requirements on at least some regional BHCs, we think it helpful to provide an update on the 2016 rule imposing this resolution buffer (see FSM Report TLAC6) to note the implications of reopening the regulation.

HFSC Dems Attack Lack of Diversity in Insurance

Ahead of an HFSC hearing on Thursday, Chairwoman Waters (D-CA) and Rep. Beatty (D-OH) released a report sharply critical of the lack of diversity in the largest US insurance companies.  Noting an array of problematic practices, the report also calls for action on legislation to require insurance companies to report their diversity data and policies to their respective regulators and to publicly disclose the gender and race makeup of their board directors and senior executives.

Senate Banking Fires Another Shot at Big Banks

Following yesterday’s “snapshots” of Truist, PNC, and USB ahead of the Thursday big-bank hearing, Senate Banking Democrats today continued their attack on large banks, releasing similar reports on Citi and Bank of America.  These snapshots again focus on consumer issues such as Zelle fraud and also highlight recent enforcement actions.


21 07, 2022


2023-01-04T15:58:15-05:00July 21st, 2022|2- Daily Briefing|

Housing Prices Session Ignites Familiar Partisan Debates

Today’s Senate Banking Committee Hearing on Housing Price Increases was another session of partisan discussion of the housing market and how to address it.  Chairman Brown (D-OH) focused on the economic stressors that result from housing insecurity, emphasizing the consequences on families of color.

Senate Banking Republicans Demand FHFA Reverse Racial Equity Plans

Following yesterday’s hearing (see Client Report GSE147), Sen. Thom Tillis (R-NC) and eleven other Senate Banking Republicans sent a letter to Director Thompson strongly objecting to what they call “affirmative-action” subsidies, calling them unconstitutional and beyond the FHFA’s mandate and the Enterprises’ charters.

BIS CPMI Identifies Benefits, Barriers to Multilateral Payment System Platforms

The BIS Committee on Payments and Market Infrastructures published an article today arguing that multilateral platforms can alleviate some payment system frictions, but several challenges remain.  The article claims that multilateral platforms can shorten processing chains, facilitate standardization, and process multiple currencies, resulting in faster payments.

CFPB Sure Now to Tackle Zelle Scams

Following media coverage yesterday suggesting near-term CFPB action, the majority of Senate Banking Democrats have called on the Bureau to do exactly what it appears to contemplate:  take action to make banks offering Zelle responsible not only for fraud, but also scams to which consumers give initial consent.


11 07, 2022


2023-01-24T15:11:32-05:00July 11th, 2022|2- Daily Briefing|

FSB Highlights Crypto, Stablecoin Risk

The FSB today issued an unusual statement warning of cryptoasset risk.  Rejecting the BIS’s more sanguine view that stablecoins and other digital assets have yet to prove, the FSB warns that inter-connectivity with the financial system already poses grave hazard.

HFSC to Consider CRA Reform, Rewrite

As noted, the HFSC Consumer Protection and Financial Institutions Subcommittee on Wednesday will consider the inter-agency CRA rule (see FSM Report CRA32).

Basel Committee Will Be Slow to Advance Climate-Risk Capital, Disclosure Standards

The head of the Basel Committee, Pablo Hernández de Cos, today reiterated that global bank regulators are dedicated to a cautious but determined set of climate-risk standards.

BIS Group Charts Course to Cross-Border CBDC

As part of the G20 cross-border payments roadmap, the BIS, IMF, and World Bank released a joint report today urging governments working on a CBDC to coordinate their designs and account for cross-border functionality early in their process.

FRB Atlanta Blog Refutes Dem’s Zelle Allegations

Coming in the wake of a letter sent by Senate Democrats alleging Zelle of mishandling fraud, FRB Atlanta today published a blog post defending the payments industry in cases where customers willingly authorize a fraudulent payment.

Chopra Promises to Promote Fierce Competition

CFPB director Chopra today reasserted his agency’s authority over ensuring financial-market competitiveness, describing recent actions against credit-card companies (see FSM Report CREDITCARD35), bigtech, and “junk fees” (see FSM Report CONSUMER38).


7 07, 2022


2023-01-24T15:30:00-05:00July 7th, 2022|2- Daily Briefing|

IOSCO Releases 2022-2023 Crypto Roadmap

IOSCO today released its Crypto-Asset Roadmap for 2022-2023, outlining two work plans on crypto- and digital assets on DeFi.

Basel Reaffirms Proportionate Policy

The Basel Committee today released high-level “considerations” on proportionality – i.e., how to apply its standards taking account of a bank’s size and complexity.

CFPB Demands Tighter Reporting-Data Controls

Using another advisory to issue what some may consider a rulemaking, the CFPB today threatened to pursue criminal penalties if credit-report data are not used for permissible purposes (i.e., for credit, housing, employment or insurance decisions).

FSB Report Promotes LEI Adoption for Cross-Border Payments

The FSB today issued a report recommending that G20 members promote Legal Entity Identifier (LEI) adoption, aiming particularly at cross-border payments.

Treasury Releases International Crypto Engagement Framework

As demanded by President Biden’s digital asset executive order (see Client Report CRYPTO26), Treasury in consultation with the State Department, Commerce, and USAID today released a framework for international engagement on digital assets.

Democratic Senators Demand More from Zelle on High-Profile Fraud Allegations

Sens. Menendez (D-NJ), Warren (D-MA), Reed (D-RI) and five Democratic colleagues today ramped up their attack on the extent to which Zelle properly handles payment fraud.


26 04, 2022


2023-03-01T15:49:34-05:00April 26th, 2022|2- Daily Briefing|

Dems Demand Answers re Zelle Fraud Risk

Although not yet publicly circulated, a letter sent by Sens. Warren (D-MA) and Menendez (D-NJ) takes sharp issue with Zelle and banks that own the payment service regarding consumer fraud risk.

Basel Tries Again on Crypto Prudential Standards

The Chair of the Basel Committee on Banking Supervision, Pablo Hernández de Cos, today confirmed that Basel is working on a second consultation addressing crypto assets to succeed the tough proposal (see FSM Report CRYPTO19) that led to stiff criticism in 2021, with this release due out in the next “couple of months.”

FSB, SEC Turn Focus on Open-End Funds

Reflecting the systemic risks highlighted during the IMF meeting, the FSB today issued a report on emerging-market economy (EME) exposures in USD-funding markets.  Going beyond analysis showing the scope of this highly interconnected risk and its growing scope as the dollar’s value and U.S. rates rise, the report also accelerates FSB work on open-end funds.


Go to Top