The U.S. Financial Regulatory Week Ahead
December 18 - 22, 2023
It is the week before Christmas, and Washington, for the most part, has gone quiet. Congress is scheduled to be out of session (although that is in flux – the Senate is likely to return Monday to vote on a Ukraine/Israel/Border Security bill, but the House of Representatives is gone until January 9).
The regulators are quiet this coming week. No open meetings, speeches, or other significant events are scheduled for next week. The one event of note next week is over at the Institute for International Finance (IIF), where they will host Bank of England Deputy Governor for Financial Stability Sarah Breeden for a “Talking Policy” series.
This past week, the Financial Stability Oversight Council (FSOC) released its annual report. You can find it HERE. The report drilled into several significant issues, including:
The Banking Sector: FSCOC says “lessons can be learned” from the SVB and other bank collapses earlier this year, but overall, the system is solid (which begs the question: why do you need a new capital increase for the largest banks?)
Cybersecurity: The report argues that cyber risk is pervasive throughout the economy, and more must be done in all sectors, not just financial.
Artificial Intelligence (AI): FSOC sees AI as a vulnerability to the overall financial system and urges financial institutions to work hard and fast to ramp up their expertise on the issue.
Nonbank Financial Intermediation: Citing the “evolving participation of nonbank financial institutions” in the financial system, FSOC pays particular attention to nonbank mortgage servicers and the rise in private credit as a potential risk to focus on.
Climate Risk: The report discusses how severe and frequent climate-related events create new risks and significant costs for the public and the economy. FSOC urges state and local governments to improve their dialogue with federal regulators while encouraging regulators to promote better disclosures for investors to understand the risk.
Digital Assets: FSOC notes “that financial stability vulnerabilities may arise from crypto-asset price volatility, the market’s high use of leverage, the level of interconnectedness within the industry, operational risks, and the risk of runs on crypto-asset platforms and Stablecoins.” The report urges Congress to pass legislation allowing regulators to regulate the sector better.
We will likely take the week of December 25 off, but we will update you if anything changes or any special events/meetings pop up. Below is the (very slim) list of events in the coming week. Please let us know if you have any questions. We hope you have a restful and blessed Christmas!
U.S. Congressional Hearings
U.S. Senate
The Senate is out of session for the Christmas and New Year holidays. They return to work on January 8.
House of Representatives
The House is out of session for the Christmas and New Year holidays. They return to work on January 9.
US Regulatory Meetings & Events
Federal Reserve Board and Federal Reserve Banks
no meetings or speeches of note are scheduled for the coming week.
U.S. Treasury Department
No meetings or speeches of note are scheduled for the coming week.
Securities and Exchange Commission
December 21, 2:00 p.m. – The SEC holds a closed meeting.
Commodities Futures Trading Commission
No meetings or speeches of note are scheduled for the coming week.
Federal Deposit Insurance Corporation
No meetings or speeches of note are scheduled for the coming week.
Office of the Comptroller of the Currency
No meetings or speeches of note are scheduled for the coming week.
The Consumer Financial Protection Bureau
No meetings or speeches of note are scheduled for the coming week.
National Credit Union Administration
No meetings or speeches of note are scheduled for the coming week.
Federal Trade Commission & Department of Justice Antitrust Division
No meetings or speeches of note are scheduled for the coming week.
Farm Credit Administration
No meetings or speeches of note are scheduled for the coming week.
Trade Associations & Think Tank Events
Trade Associations
There are no events of note scheduled for the coming week.
Think Tanks
December 19, 8:00 a.m. – The Institute for International Finance (IIF) hosts Sarah Breeden, Bank of England Deputy Governor for Financial Stability, for their Talking Policy Series.
Please let us know if you have any questions or want to be added to our email distribution list.