U.S. Financial Regulatory Week Ahead
March 11 - 15, 2024
Last week was quite an epic week in the financial regulatory world, and from where we sit, it seems the regulators got the worst of it.
As noted in last week's report, the SEC finally released Chair Gary Gensler's long-awaited Climate Disclosure regulatory proposal. And it landed with a thud, seemingly making no one happy. Progressive Democrats are angry Chair Gensler weakened the original draft to exclude supply chain climate impact while Corporate America and a number of states hated the whole thing – so much so that the state attorney generals of Louisiana, Mississippi, and Texas immediately filed a joint lawsuit in the 5th Circuit Court of Appeals – joining ten other Republican-led states led by West Virginia – asking the proposed 900 page-plus rules be struck down for overstepping the SEC's powers.
In addition to these suites, two energy companies have also filed suits, and we almost assuredly will see even more suits coming from business groups in the coming weeks. It will be a long, hard slog ahead for the SEC's rule proposal to survive.
Also, this past week, the U.S. Chamber of Commerce, the American Bankers Association, and the Consumer Banking Association filed a joint federal lawsuit seeking to bar the Consumer Financial Protection Bureau (CFPPB) from implementing its new cap on crediPlus, there is a growing chorus of members of Congress quite unhappy with the price cap proposal, and you can see the CFPB proposal in the mounting pile of Biden Administration regulatory proposals facing serious litigation risk of being struck down.
Meanwhile, the House of Representatives passed a large package (22 combined bills) seeking to scale back securities regulation impacting access to private capital. The SEC regulations – also facing separate litigation in federal courts – stirred up a hornet's nest on Capitol Hill when passed. The Bide White House has indicated they intend to veto the legislation if it ever lands on the President's desk – but let's see first if it has a chance of passage in the Senate as a stand-alone bill (which we think it does not).
Also, this past week, Federal Reserve Board Chair Jay Powell, during his separate House and Senate Semi-Annual Monetary Reports to Congress, heard repeated push-back on the Fed-led effort to increase large bank capital standards. From what we heard from Powell's answers, it sounds like the capital proposal will likely face significant revisions – something Acting Comptroller of the Currency Michael Hsu suggested in a speech this past week, too.
This coming week, we will be watching the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion hold a tough oversight hearing on the CFPB's activities – surely focusing heavily on how the Agency came up with the $8 cap on credit card fees.
Also this week, the Futures Industry Association and the Institute for International Bankers are holding their respective annual member meetings, and a fairly wide assortment of regulators are speaking.
Below are all the major regulatory events we are watching this coming week:
U.S. Congressional Hearings
U.S. Senate
Tuesday, March 12, 10:00 a.m. – The Senate Banking Committee holds a hearing entitled “Examining Proposals to Address Housing Affordability, Availability, and Other Community Needs.”
Tuesday, March 12, 10:00 a.m.: The Senate Finance Committee will hold a hearing on "American Made: Growing U.S. Manufacturing Through the Tax Code."
House of Representatives
Tuesday, March 12, 10:00 a.m. – The House Financial Services Committee holds a hearing entitled “Mission Critical: Restoring National Security as the Focus of Defense Production Act Reauthorization” You can read the Committee Background Memorandum HERE.
Wednesday, March 13, 9:00 a.m. – The House Financial Services Committee’s Financial Services, Digital Assets, Financial Technology and Inclusion Subcommittee holds a hearing entitled “Bureaucratic Overreach or Consumer Protection? Examining the CFPB's (Consumer Financial Protection Bureau) Latest Action to Restrict Competition in Payments”
Joint Committees
Tuesday, March 12, 2:30 p.m.: The Joint Economic Committee will hold a hearing entitled “The Fiscal Situation of the United States.”
US Regulatory Meetings & Events
White House
Tuesday, March 12, 1:00 p.m. —White House National Economic Advisor Lael Brainard will speak at The Urban Institute on “The Biden-Harris Administration’s Housing Policy Agenda: A Conversation with Lael Brainard, National Economic Advisor” in Washington, D.C.
Federal Reserve Board and Federal Reserve Banks
The Federal Reserve is in its “Blackout Period” in advance of the Federal Open Market Committee meeting on March 20 & 21.
U.S. Treasury Department
There are no significant events scheduled at this time.
Securities and Exchange Commission
Thursday, March 14, 2:00 p.m. – The SEC holds a Closed Meeting.
Commodities Futures Trading Commission
Monday, March 11, 10:15 a.m. – CFTC Commissioner Christy Goldsmith Romero will give a fireside chat at the Institute of International Bankers Annual Washington Conference in Washington, D.C.
Tuesday, March 12, 9:05 a.m. – CFTC Chair Rostin Behnam will deliver a keynote address and participate in a fireside chat at FIA’s Annual International Futures Industry Conference (FIA Boca 2024) in Boca Raton, Florida.
Friday, March 15, 9:30 a.m. – 12: 30 p.m. – The CFTC’s Market Risk Advisory Committee’s Future of Finance Subcommittee and the Climate-Related Market Risk Subcommittees will meet in Washington, D.C. Both subcommittees will each examine the potential risks that emerge in connection with increasing adoption of artificial intelligence in global financial markets and the risks that arise in connection with carbon derivatives markets with a particular focus on fraud and greenwashing, market integrity, product design, and disclosure.
FINRA
There are no significant events scheduled at this time.
Federal Deposit Insurance Corporation
Friday, March 15, 8:00 – 4:35 p.m. – The FDIC’s 2024 Consumer Research Symposium will be held at the FDIC’s Arlington, Virginia offices.
Office of the Comptroller of the Currency
There are no significant events scheduled at this time.
The Consumer Financial Protection Bureau
There are no significant events scheduled at this time.
National Credit Union Administration
There are no significant events scheduled at this time.
Federal Trade Commission & Department of Justice Antitrust Division
There are no significant events scheduled at this time.
Farm Credit Administration
Thursday, March 14, 10:00 a.m. – The Farm Credit Administration will hold a closed meeting in McLean, Virginia, to approve the minutes for February 8, 2024 (Open), and the Office of Secondary Market Oversight periodic report.
Farm Credit System Insurance Corporation
There are no significant events scheduled at this time.
Import/Export Bank
There are no significant events scheduled at this time.
World Bank
There are no significant events scheduled at this time.
Trade Associations & Think Tank Events
Trade Association Events/Public Events
Sunday – Tuesday, March 10 – 12: The Institute for International Bankers hold their 2024 Annual Washington Conference in Washington, D.C. Speakers include Acting Comptroller of the Currency Michael Hsu and Federal Reserve Board General Counsel Mark Van Der Weide.
Sunday – Wednesday, March 10 – 13: The Futures Industry Association holds its annual meeting in Boca Raton, Florida.
Think Tank Events
March 11, 11:00 a.m.: The Atlantic Council will hold a virtual conference entitled “Guarantees for Climate Finance in the World Bank-IMF Agenda.”
Tuesday, March 12, 9:00 a.m. – The Peterson Institute for International Economics hosts an event entitled “Prospects for Reform of Emergency Liquidity Assistance to Banks in the US.” Andrew Metrick, the Janet L. Yellen Professor of Finance and Management, Yale School of Management, and Cornelia Holthausen, the Director General of Macroprudential Policy and Financial Stability, European Central Bank, will speak.
Tuesday, March 12, 9:00 a.m. – The Institute for International Finance holds an online event entitled “IIF Talking Policy with Gerry Cross, Director of Financial Regulation – Policy and Risk Central Bank of Ireland.”
Tuesday, March 12, 1:00 p.m. – The Urban Institute holds an event entitled “The Biden-Harris Administration’s Housing Policy Agenda: A Conversation with Lael Brainard, National Economic Advisor” in Washington, D.C.
Wednesday, March 13, 2:00 p.m. – The National Institute on Retirement Security will hold a virtual discussion on "2024 Global Economic and Market Outlook," beginning at 2 p.m.
Thursday, March 14, 12:00 p.m. – The Institute for International Finance and McKinsey present a new report via an online event entitled “Futureproofing Cybersecurity and Emerging Technology.”
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