U.S. Financial Regulatory Week Ahead
February 5 - 9, 2024
The work of the Financial Stability Oversight Council (FSOC) gets a thorough review this coming week as Treasury Secretary Janet Yellen testifies before both the House Financial Services Committee and the Senate Banking Committee. Secretary Yellen will present the FSOC's annual report. We should expect a wide range of regulatory issues - particularly the Federal Reserve's proposed bank capital rulemaking as well as the CFPB's recent proposal on overdraft fees to come under intense criticism.
Also, this coming week, the SEC will be considering new regulations as to whether to further define the phrase "as a part of a regular business" as used in the statutory definitions of the terms "dealer" and "government securities dealer." This is all part of SEC Chair Gary Gensler's efforts to reform the Treasury bond trading system.
Speaking of the SEC: In a House Financial Services Committee hearing last week looking at the SEC's proposed changes to how investment advisors should crypto, real estate, and other assets, Representative Andy Barr (R-KY) released letters from both Fed Chair Jay Powell and Acting Comptroller of the Currency Michael Hsu expressing their concerns over the proposal. Barr had sought their views on the proposal and, in a surprise to many, both Powell and Hsu responded in advance of the hearing, expressing their criticisms (this seems to be a new thing in the Washington regulatory space: Financial regulators criticizing other regulators publicly when they disagree on proposed regulations instead of working it out quietly behind the scenes– recall our note from last week pointing out the sharp public criticism Fed Governors Christopher Waller and Michelle Bowman leveled at Fed Vice Chair Michael Barr's capital requirement rule).
Powell said the proposed rule "…requires a significant change in custody practices at depository institutions," while Hsu said it "would be a departure from the usual manner in which bank custodians hold clients' cash" while its "liability and indemnification requirements would be another departure from current practice." Clearly, the SEC is headed to a significant revision in the proposal.
Below is a listing of all the issues and events U.S. regulators are engaged in this week, along with relevant think tank and trade association events. Please let us know if you have any questions.
U.S. Congressional Hearings
U.S. Senate
February 8, 9:00 a.m. – The Senate Banking Committee will hold a hearing entitled “The Financial Stability Oversight Council Annual Report to Congress.” Treasury Secretary Janet Yellen will testify and present the report.
House of Representatives
February 6, 10:00 a.m. – The House Financial Services Committee holds a hearing on “the Annual Report of the Financial Stability Oversight Council.” Treasury Secretary Janet Yellen will testify and present the report.
US Regulatory Meetings & Events
Federal Reserve Board and Federal Reserve Banks
February 7, 11:00 a.m. – Federal Reserve Board Governor Adriana D. Kugler will give a speech on “The Outlook for the Economy and Monetary Policy” at the Brookings Institution, Washington, D.C.
February 7, 2:00 p.m. – Federal Reserve Board Governor Michelle W. Bowman will give a speech on “Supporting Entrepreneurship and Small Businesses” at the Uneven Outcomes in the Labor Market Conference, co-hosted by the Federal Reserve Board and the Federal Reserve Banks of Atlanta, Boston, Cleveland, Philadelphia, San Francisco, and St. Louis (via pre-recorded video).
U.S. Treasury Department
Treasury Secretary Janet Yellen will testify before the House Financial Services Committee on February 6 (10:00 a.m.) and the Senate Banking Committee on February 8 (9:00 a.m.) to present the Annual Report of the Financial Stability Council. See above for links to watch online.
Securities and Exchange Commission
February 6, 10:00 a.m. – the SEC will hold an Open Meeting to consider new regulations concerning “The Definition of a Dealer and Government Securities Deal in Connection with Certain Liquidity Providers.”
February 8, 2:00 p.m. – the SEC will hold a Closed Meeting.
Commodities Futures Trading Commission
February 8, 12:00 p.m. – CFTC Commissioner Kristin N. Johnson will deliver a keynote address at the Women in Housing & Finance’s monthly public policy luncheon. The event will be held at the law firm Dechert LLP in Washington, D.C.
February 9, 8:45 a.m. PST/11:45 a.m. EST – CFTC Commissioner Caroline D. Pham will speak on a panel titled “Regulator Deep Dive” at the FIA-SIFMA AMG Asset Management Derivatives Forum 2024. The Forum is being held at the Ritz-Carlton in Dana Point, California.
FINRA
February 6: FINRA holds its 2024 Cybersecurity Conference in New York.
Federal Deposit Insurance Corporation
There are no significant meetings or events scheduled at this time.
Office of the Comptroller of the Currency
February 8, 8:00 a.m. – 5:45 p.m. – The OCC will hold a Symposium on the Tokenization of Real-World Assets and Liabilities at the OCC Headquarters in Washington, D.C. A full agenda of the event can be found HERE. Acting Comptroller of the Currency Michael Hsu will give opening remarks.
The Consumer Financial Protection Bureau
There are no significant meetings or events scheduled at this time.
National Credit Union Administration
February 6, 11:00 a.m. – NCUA Chairman Todd Harper will speak at the Brookings Institution, Washington, D.C.
Federal Trade Commission & Department of Justice Antitrust Division
There are no significant meetings or events scheduled at this time.
Farm Credit Administration
February 8, 10:00 a.m. – The FCA Board will meet in a hybrid physical/virtual meeting to consider the final rule on risk weighting of high-volatility commercial real estate. The physical meeting will take place at the FCA headquarters in McLean, Virginia.
Farm Credit System Insurance Corporation
February 7, 10:00 a.m. – The FCSIC Board of Directors will meet to review and set Insurance Premium Accrual Rates at the FCSIC headquarters in McLean, Virginia.
World Bank
February 5, 9:00 a.m. – World Bank President Ajay Banga will speak at the Center for Global Development on the future of the World Bank.
Trade Associations & Think Tank Events
Trade Association Events
February 6 – 8 – The Investment Company Institute holds its 2024 ICI Innovate Conference in San Diego, California.
February 7-9 – SIFMA holds its annual Asset Management Derivatives Forum 2024 in Dana Point, California.
Think Tank Events
February 6, 8:30 a.m. – NextGov/FCW hosts Zero Trust Workshop 2024 in Washington, D.C. Scott Braus, Director of Cybersecurity Operations, Consumer Financial Protection Bureau (CFPB), will speak.
February 6, 9:00 a.m. – The Peterson Institute for International Economics holds a virtual event entitled “China’s Overhaul of its Financial Supervisory Architecture.”
February 7, 12:30 p.m. – The Economic Club of Washington, D.C., holds a discussion on "the 2024 economic outlook, the regional economy, and the economic indicators the Federal Reserve monitors to guide its decisions on monetary policy." Tom Barkin, President and CEO of the Federal Reserve Bank of Richmond, and Jodie McLean, CEO of EDENS, chair of the board of the Federal Reserve Bank of Richmond, and Economic Club Board member, will speak.
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