Fulcrum Perspectives

An interactive blog sharing the Fulcrum team's policy updates and analysis, as well as book recommendations, travel observations, and cultural experiences - all of which we hope will be of interest to you.

Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

Moving to Full Throttle: Washington Ramps Up On Multiple Regulatory Fronts This Week

September 9 - 13, 2024

Congress returns to work this week, having been out of session since the end of July. The rest of Washington’s regulatory world is already buzzing with activity, and combined, there is a lot going on.

In the coming week, we will closely watch the House Financial Services Subcommittee on Financial Institutions hearing entitled “Transparency in Global Governance.”  The hearing is aimed at how the Basel Committee, the Bank for International Settlements (BIS), and other international organizations interact with US financial regulators and their influence on regulatory developments.  The only problem is that these organizations are refusing to appear, infuriating Subcommittee Chair Representative Andy Barr (R-KY).   At this point, we are not sure who will testify, and no one is listed on the Committee’s website.

Also on the Hill this week, the House Agriculture Committee is scheduling a closed-door hearing for members to get briefed and up-to-speed on “event contracts.”   For those of you unfamiliar with event contracts, they are the ability for financial traders to put “contract” wagers on, well, everything.  As Politico noted, it can be things as weird as what a movie’s Rotten Tomato scores will be. 

Also this week, Federal Reserve Vice Chair for Supervision Michael Barr will speak at the Brookings Institution on the status of the Fed's Basel III regulatory initiative. Considering the proposal has come under withering criticism from banks and Congress (not to mention public doubts from Fed Chair Jay Powell and several Fed Governors) and has been intensely rewritten, Barr’s comments will be important.   

SEC Chair Gary Gensler will give a speech and participate in a fireside chat at a Peterson Institute for International Economics event. The topics of the discussion seem likely to be wide-ranging.

Last week ended up being a bit busier than anyone expected.  We would note that Acting Comptroller of the Currency Michael Hsu gave an important speech at the Joint European Banking Authority and European Central Bank International Conference in Frankfurt, Germany (which was not added to his public calendar until the very last minute).  In his remarks, Hsu said regulators should consider creating a process for officially designating which banks within the domestic financial system are important – DSIBs.  Hsu pointed out some other countries already do this and suggested the US follow suit. 

Also, last week, a Federal Court blocked the CFTC’s rejection of US election betting markets – talk about good timing for all you election junkies out there!

Below is what else is happening in the regulatory world in Washington this week: 

 

U.S. Congressional Hearings 

U.S. Senate

·       The Senate is out of session for the month of August and returns to work on September 9.

 

House of Representatives

·       TBD – The House Agriculture Committee will hold a closed-door briefing for members on the topic of event contracts (which are financial products allowing traders to wager on virtually anything).  No date or time has been released yet.

 

·       Tuesday, September 10, 10:00 a.m. – The House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Inclusion will hold a hearing entitled “Decoding DeFi: Breaking Down the Future of Decentralized Finance.”

 

·       Tuesday, September 10, 10:30 a.m. – The House Education and Workforce Committee holds a hearing entitled “ERISA’s 50th Anniversary: The Value of Employer-Sponsored Health Benefits”

 

·       Tuesday, September 10, 2:00 p.m. – The House Financial Services Committee’s Subcommittee on Oversight and Investigations holds a hearing entitled “The Fall of ESG: Scrutinizing the Failed Use of Environmental, Social, & Governance Standards and the Influence of Proxy Advisors.”

 

·       Wednesday, September 11, 10:00 a.m. – The House Financial Services Committee’s Subcommittee on Financial Institutions and Monetary Policy Subcommittee holds a hearing entitled “Transparency in Global Governance”

 

·       Wednesday, September 11, 10:00 a.m. – The House Agriculture Committee holds a hearing entitled “Severe Food Distribution Shortages in Tribal and Elderly Communities.”  

 

 

US Regulatory Meetings & Events

Federal Reserve Board and Federal Reserve Banks

·       Tuesday, September 10, 11:00 a.m. – Federal Reserve Board Vice Chair for Supervision Michael Barr will speak at the Brookings Institution in Washington, D.C. at an event entitled “The Basel III Endgame: A Conversation with Michael Barr.”

 

U.S. Treasury Department

·       Monday, September 9, 1:00 p.m. – The Treasury Department holds a meeting of the Treasury Advisory Committee on Racial Equity for opening remarks from TACRE Chair Michael Nutter, an overview of the work conducted by the TACRE subcommittees since the April 18, 2024, TACRE meeting, a possible vote on recommendations to make to the Treasury Department and briefings from government officials from the Treasury Department and the Internal Revenue Service.

 

Department of Commerce

·       There are no significant events scheduled at this time.

 

Securities and Exchange Commission

·       Monday, September 9, 10:00 a.m. – The SEC holds an Open Meeting to consider he Commission will consider whether to approve a new quality control standard, QC 1000, A Firm’s System of Quality Control, and related amendments, as adopted by the Public Company Accounting Oversight Board.

 

·       Tuesday, September 10, 9:30 a.m. – SEC Chair Gary Gensler will give remarks at the Peterson Institute for International Economics.  Following his speech, he will participate in a fireside chat with Roger Ferguson, former Vice Chair of the Federal Reserve.

 

·       Thursday, September 12, 2:00 p.m. – The SEC holds a Closed Meeting.

 

Commodities Futures Trading Commission

·       There are no significant events scheduled at this time.

 

FINRA

·       There are no significant events scheduled at this time.

 

Federal Deposit Insurance Corporation

·       There are no significant events scheduled at this time.

 

Office of the Comptroller of the Currency

·       There are no significant events scheduled at this time.

 

The Consumer Financial Protection Bureau

·       Monday, September 9, 12:30 p.m. – CFPB Director Rohit Chopra speaks at an event hosted by Intercontinental Exchange and the National Housing Conference.

 

The Federal Housing Finance Agency

·       Tuesday, September 10 – 11 – The FHFA holds a meeting of the Federal Advisory Committee on Affordable, Equitable, and Sustainable Housing to advise FHFA in the exercise of its oversight functions regarding affordable, equitable, and sustainable housing, including but not limited to, affordable, equitable, and sustainable housing needs, barriers to access, barriers to long-term sustainability, and any regulatory, guidance, or policy changes that may be necessary or beneficial to expand such housing.

 

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, September 12, 10:00 a.m. – The FCA holds a meeting of the quarterly report on economic conditions and Farm Credit System condition and performance.

 

International Monetary Fund & World Bank

·       There are no significant events scheduled at this time.

 

North American Securities Administrators Association

·       There are no significant events scheduled at this time.

 

 

Trade Associations & Think Tank Events 

Trade Associations

·       Thursday, September 12: The American Bankers Association will hold a virtual conference entitled “Diversity, Equity, and Inclusion Summit.”

 

Think Tanks and Other Events

·       Monday, September 9, 9:00 a.m. – The Peterson Institute for International Economics holds an event entitled “Do EU regulations unduly penalize securitization?” Emmanuelle Assouan, Director General for Financial Stability and Operations, Bank of France, will speak.

 

·       Tuesday, September 9, 1:00 p.m. – The Farm Foundation holds a discussion on "The Agricultural Platforms of the Candidates for President of the United States."

 

·       Tuesday, September 10, 9:30 a.m.  – The Peterson Institute for International Economics hosts SEC Chair Gary Gensler for a speech and fireside chat.

 

·       Thursday, September 12, 9:00 a.m. – The Institute for International Finance holds an online event entitled “Policy Implications of the 2024 U.S. Elections: Fiscal and Growth Outlooks.”

 

·       Tuesday, September 10, 11:00 a.m. – Federal Reserve Board Vice Chair for Supervision Michael Barr will speak at the Brookings Institution in Washington, D.C. at an event entitled “The Basel III Endgame: A Conversation with Michael Barr.”

 

·       Thursday, September 12, 9:30 a.m. – The Cato Institute holds a conference entitled “Financial Privacy Under Fire: Protecting and Restoring Americans’ Rights’ in Washington, D.C.

 

·       Thursday, September 12, 10:00 a.m. – The Brookings Institution holds a discussion on "The Tax Cuts and Jobs Act of 2017: Lessons learned and the debate ahead.”

 

·       Thursday, September 12, 2:00 p.m. – The Bipartisan Policy holds a Leaders Speaker Series with former Federal Housing Finance Agency Director Mark Calabria.

 

 

Please let us know if you have any questions or would like to be added to our email distribution list.

 

Read More
Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

June 3 - 7, 2024

It was 90 years ago this week that President Franklin Roosevelt established the Securities and Exchange Commission.  The SEC will celebrate the historic event on Wednesday with a gathering of former SEC Chairs in Washington.

We will also be watching this week as Treasury Secretary Janet Yellen and Acting Comptroller of the Currency Michael Hsu take part, on behalf of the Financial Stability Oversight Council FSOC) in a Brookings Institution conference entitled "Artificial Intelligence & Financial Stability.”   The development of AI is of growing concern to financial regulators on a number of fronts and this conference and the high-level engagement of the Treasury Secretary and Head of the OCC are good examples of how high-level that concern has gotten recently.

Looking back on the last week, the US Supreme Court handed down an important (and unanimous) decision that rejected a broad approach to exempting national banks from state regulations.  The decision requires courts to take a “nuanced” approach to federal laws when coming in conflict with state laws. 

Also last week, House Financial Services Committee Chair Patrick McHenry (R-NC) announced he will hold a hearing on the scandals at the FDIC.  He intends to call FDIC Chair Martin Gruenberg up to testify before the full committee where he will face renewed calls to step down immediately (Gruenberg has steadfastly said he is staying until a replacement is nominated and confirmed by the US Senate, which will likely take not happen until early 2025).

Below is a full listing of what is happening at the financial regulatory agencies this week and in Congress.  Please let us know if you have any questions.

U.S. Congressional Hearings

 

U.S. Senate

·       Wednesday, June 5, 10:00 a.m. – The Senate Budget Committee holds a hearing on "Riskier Business: How Climate is Already Challenging Insurance Markets."

 

House of Representatives

·       Tuesday, June 4, 11:00 a.m. – The House Ways and Means Social Security Subcommittee holds a hearing on "The Social Security Trust Funds in 2024 and Beyond."

 

·       Wednesday, June 5, 9:00 a.m. – The House Financial Services Digital Assets, Financial Technology and Inclusion Subcommittee holds a hearing on "Next Generation Infrastructure: How Tokenization of Real-World Assets Will Facilitate Efficient Markets."

 

Joint Committees

·       Tuesday, June 4, 2:30 p.m. – The Joint Economic Committee holds a hearing on "Artificial Intelligence and Its Potential to Fuel Economic Growth and Improve Governance."

 

US Regulatory Meetings & Events

 

Federal Reserve Board and Federal Reserve Banks

·       Thursday, June 6, 12:00 p.m. – Federal Reserve Board Governor Lisa D. Cook at the Girls Global Academy 2024 Commencement Ceremony, University of the District of Columbia, Washington, D.C.

 

U.S. Treasury Department

·       Tuesday, June 4, 1:00 p.m. – The Treasury Department holds a virtual meeting of the Federal Advisory Committee on Insurance to discuss climate-related financial risk and the insurance sector, discuss cyber insurance developments and international insurance issues and receive status updates from each of its subcommittees and from the Federal Insurance Office on its activities.

 

·       Thursday, June 6 & 7 – The Financial Stability Oversight Council  (FSOC) and the Brookings Institution hold a conference on "Artificial Intelligence & Financial Stability.”  Treasury Secretary Janet Yellen and Acting Comptroller of the Currency Michael Hsu will give keynote speeches.

 

Securities and Exchange Commission

·       Tuesday, June 5, 11:10 a.m. – SEC Chair Gary Gensler will speak at the ISDA/SIFMA Treasury Forum in New York.

 

·       Wednesday, June 6, 10:00 a.m. – The SEC holds a virtual meeting of the SEC Investor Advisory Committee for a panel discussion examining the new frontier for investment advice, a panel discussion regarding AI regulation: embracing the future, a discussion of a recommendation regarding the protection of self-directed investors when trading complex products and utilizing complex strategies, a discussion of a recommendation on financial literacy and investor education and subcommittee and working group reports.

 

·       Wednesday, June 6, 1:00 p.m. – The SEC hosts the 90th Anniversary of the Securities Exchange Act at the SEC.

 

Commodities Futures Trading Commission

·       Tuesday, June 4, 10:00 a.m. – The Commodity Futures Trading Commission holds a meeting of the Global Markets Advisory Committee to hear a presentation from the GMAC's Global Market Structure Subcommittee, Technical Issues Subcommittee, and Digital Asset Markets Subcommittee on various workstreams, and consider recommendations from the Subcommittees on such workstreams.

·       Wednesday, June 5, 12:30 p.m. – CFTC Chairman Rostin Behnam to keynote at the Piper Sandler Global Exchange & Trading Conference 2024 in New York.

  

FINRA

·       There are no significant events scheduled at this time.

 

Federal Deposit Insurance Corporation

·       Tuesday, June 4, 9:00 a.m. – The Federal Deposit Insurance Corporation holds a meeting of the FDIC Advisory Committee on Economic Inclusion for updates from committee members about key challenges facing their communities or organizations and panel discussions on the current environment for economic inclusion, including industry and market trends that affect consumer participation in the banking system.

 

Office of the Comptroller of the Currency

·       Wednesday, June 6, 9:40 a.m. Chicago Time – Acting Comptroller of the Currency Michael Hsu will discuss “The OCC’s Financial Health: Vital Signs Initiative” at the EMERGE Financial Health 2024 Conference in Chicago, Illinois.

 

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

·       Tuesday, June 4, 11:20 a.m. – FTC Chair Lina Kahn will participate in a fireside chat at the 2024 CNBC CEO Summit in Washington, D.C.

 

·       Friday, June 7, 10:30 a.m. – FTC Chair Lina Kahn delivers opening comments at the American Constitution Society Annual Conference in Atlanta, Georgia.

 

Farm Credit Administration

·       There are no significant events scheduled at this time.

 

International Monetary Fund & World Bank

·       There are no significant events scheduled at this time.

 

North American Securities Administrators Association

·       There are no significant events scheduled at this time.

 

Trade Associations & Think Tank Events

Trade Associations

·       Tuesday, June 4 – The American Academy of Actuaries holds a symposium on "Looking Back, Moving Forward: The Employee Retirement Income Security Act at 50’ in Washington, D.C.

 

·       Tuesday, June 4, 8:00 a.m. – The U.S. Chamber of Commerce holds its 2024 Sustainability and Circular Economy Summit in Washington, D.C.

 

·       Tuesday, June 4, 1:30 p.m. – The Institute of International Bankers holds their 2024 Foreign Bank Governance Seminar in New York.

  

Think Tanks and Other Events

Thursday, June 6 & 7  – The Urban Institute holds a summit on "Advancing Housing Justice.”

 

Please let us know if you have any questions or would like to be added to our email distribution list.

Read More
Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

It is a snowy and frigid beginning of the week here in Washington. There is only one major regulatory meeting this week: The SEC is looking to move forward with new regulations of SPACs and is holding an open meeting on Wednesday to consider several new proposals. 

It was not just the Nation's capital hit by a frigid front this past week: The Federal Reserve's Bank Capital proposal was hit with a frosty blast of opposition from several important regulatory players. As we reported in last week's Reg Week Ahead, Federal Reserve Board Governor Michelle Bowman continues to take a tough stance on the proposal at the U.S. Chamber of Commerce's Center for Capital Markets "Protect Main Street" event. Bowman was joined this past Tuesday by Federal Reserve Governor Christopher Waller, who, in a speech at the Brookings Institution, said of the proposal, "It's got to have a major overhaul, in my view, to get a reasonable product and possibly even taking it back and starting over." He also said of the portion dealing with operational risk, "The way it's calculated made absolutely no sense to me whatsoever." 

At this point, Federal Reserve Board Vice Chair Michael Barr's efforts to push forward on the proposal has run into a turbo-charged buzzsaw of opposition from all the major bank trade associations, along with the U.S. Chamber of Commerce, the Mortgage Bankers Association, the National Association of Homebuilders, and the National Association of And the Bank Policy Institute has hired former Secretary of Labor Eugene Scalia to (most assuredly) bring a federal lawsuit against the Fed if they push forward with the proposal as current written.  Scalia has a long and highly successful track record of suing financial regulators over a variety of controversial proposals. 

Another highly controversial regulatory proposal emerged this past week: The CFPB announced its intention to move forward with new regulations around overcharge fees.  The proposal immediately was hit with intense criticism from most of the banking sector and several influential members of Congress.  We expect this to be yet another set of regulatory proposals that end up being challenged in Federal Court soon. 

Also, this past week, U.S. Treasury staff traveled to China for a working group session on financial stability and capital markets.   No breakthroughs were reached. Still, the read-out was generally positive and is all part of the reproachment between Beijing and Washington set in motion as a result of President Biden's meeting with Chinese President Xi in San Francisco this past November. 

Finally, we would note a timely event being hosted by the Peterson Institute for International Economics this week: A virtual discussion on "Next steps for the Basel Committee on Banking Supervision" that will feature Neil Esho, Secretary General, Basel Committee on Banking Supervision and  Isabelle Vaillant, Director of Prudential Regulation and Supervisory Policy, European Banking Authority. This should be an informative event, considering the growing pushback on the Fed's capital rules.

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

 

House of Representatives

  • The House is out of session this week.

 

US Regulatory Meetings & Events

Federal Reserve Board and Federal Reserve Banks

  • No public events are scheduled as the Federal Reserve is in its “Blackout Period” in advance of the January 31 Federal Open Market Committee meeting on interest rates.

 

U.S. Treasury Department

  • There are no announced scheduled events of note.

 

Securities and Exchange Commission

 

Commodities Futures Trading Commission

  • CANCELLED - January 22, 9:00 a.m. – The CFTC had announced (and canceled on Saturday) an open meeting to consider requirements for Designated Contract Markets and Swap Execution Facilities Regarding Governance and the Mitigation of Conflicts of Interest Impacting Market Regulation Functions.

  • January 26, 12:00 p.m. – CFTC Summer K. Mersinger will participate on a panel, Digital Assets: What’s in Store for the Future, at the ABA Business Law Section’s Derivatives and Futures Law Committee Winter Meeting in Naples, Florida.

     

  • January 26, 1:15 p.m. – CFTC Chairman Rostin Behnam will keynote at the ABA Business Law Section Committee on Derivatives and Futures Law Winter Meetings in Naples, Florida.

 

Federal Deposit Insurance Corporation

  • There are no announced scheduled events of note.

 

Office of the Comptroller of the Currency

  • There are no announced scheduled events of note.

 

The Consumer Financial Protection Bureau

  • There are no announced scheduled events of note.

 

National Credit Union Administration

  • There are no announced scheduled events of note.

 

Federal Trade Commission & Department of Justice Antitrust Division

  • January 24, 3:00 p.m. – The FTC will hold a Closed Commission meeting.

  • January 25, 12:00 p.m. – 4:30 p.m. – The FTC is holding a Tech Summit in Washington, D.C. The Summit events goal is “to facilitate a dialogue amid a dynamic landscape.”  You can see the agenda and list of speakers HERE.

 

Farm Credit Administration

  • There are no announced scheduled events of note.

 

Trade Associations & Think Tank Events

Trade Association Events

Think Tank Events

  

Please let us know if you have any questions or would like to be added to our email distribution list.

Read More

Subscribe to our newsletter.

Sign up with your email address to receive news and updates.