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.
U.S. Financial Regulatory Week Ahead
The Fed Backs Down on Bigger Bank Capital Standards Setting Up A Possible FDIC Vote This Week; Election Betting Gets Held Up Again, and FDIC Chair Gruenberg Refuses to Testify Before Congress
September 16 - 20, 2024
The coming week will be filled with lots of regulatory speeches, congressional hearings, and a good number of trade association conferences. However, the biggest event is likely to be the FDIC's Open Meeting, where they may vote on the much-criticized and now scaled-back bank capital requirements. In a major concession to lobbying by big banks and many members of Congress, Federal Reserve Vice Chair Michael Barr announced last week that the Fed, OCC, and FDIC had negotiated a re-write, but it is unclear if all the details have been finalized among the three regulators.
The FDIC action comes as embattled FDIC Chair Marty Gruenberg shockingly refused a request to testify before the House Financial Services Committee. Gruenberg, who has announced he will at some point step down from his role, allowing a toxic work environment and widespread sexual harassment as well as his own personal unprofessional behavior, was supposed to testify on September 19, but his staff informed the Committee he would not show up. As we have noted in previous updates, Gruenberg refuses to step down until a replacement is confirmed by the US Senate, which most seasoned observers believe will not happen until next year due to the elections and the Senate schedule – something Gruenberg clearly understands as he desperately clings to power.
Regarding Gruenberg's replacement, Senate Banking Committee Chair Sherrod Brown (D-OH) is apparently looking to hold a committee confirmation vote for current CFTC Commissioner Christy Goldsmith Romero this week. But we know two senators are out of action this week for health reasons and believe the committee vote probably will not happen.
Also, election betting on financial exchanges was expected to begin this coming week. However, a federal appellate court halted the financial exchange Kalshi on Friday to review the situation more closely. The CFTCC had ruled against allowing such betting through derivative markets. However, a federal judge overturned the CFTC block Thursday, and Kalshi began to trade election betting contracts quickly, but they are now in limbo as the appellate court looks deeper into the matter. How long until they rule is anyone's guess. But it could come as early as this week.
Below is a listing of all the other significant regulatory-related events this coming week:
U.S. Congressional Hearings
U.S. Senate
· Tuesday, September 17, 2:30 p.m. – The Senate Banking Committee’s Subcommittee on Financial Institutions and Consumer Protection holds a hearing entitled “Back to School: Shedding Light on Risks and Harm in the Private Student Lending and Servicing Market”
· Wednesday, September 18, 2:00 p.m. – The Senate Banking Committee’s Economic Policy Subcommittee will hold a hearing on the macroeconomic impacts of potential tax reform in 2025.
· Sometime During the Week of September 16 – TBD – Senate Banking Committee Chair Sherrod Brown (D-OH) may attempt to bring up for a committee vote the nomination of FDIC Chair-designate Christy Goldsmith Romero – along with several other nominations (an SEC Commissioner nomination, an insurance expert for the Financial Stability Oversight Council, and a nominee for Assistant Secretary of Treasury).
House of Representatives
· Wednesday, September 18, 10:00 a.m. – The House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Inclusion will hold a hearing entitled “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets.”
· Wednesday, September 18, 10:00 a.m. – The House Appropriations Transportation, Housing and Urban Development, and Related Agencies Subcommittee holds a hearing on "Oversight Hearing: Inspectors General of the Department of Housing and Urban Development, Department of Transportation, and the National Railroad Passenger Corporation."
· Wednesday, September 18, 2:00 p.m. – The House Financial Services Committee’s Subcommittee on National Security, Illicit Finance, and International Financial Institutions will hold a hearing entitled “Protecting Americans Savings: Examining the Economics of the Multi-Billion Dollar Romance Confidence Scam Industry.”
US Regulatory Meetings & Events
Federal Reserve Board and Federal Reserve Banks
· Tuesday and Wednesday, September 17 & 18 – The Federal Reserve Board’s Open Market Committee meets to discuss the economy and interest rates. Federal Reserve Board Chair Jay Powell will give a press release on the 18th at 2:00 p.m.
U.S. Treasury Department
· Monday, September 16, 1:30 p.m. – The Treasury Department holds a meeting of the Federal Advisory Committee on Insurance to discuss topics related to climate-related financial risk and the insurance sector, cyber insurance developments, and international insurance issues and to receive status updates from each of its subcommittees and from FIO on its activities and consider any new business.
· Tuesday, September 17, 3:45 p.m. – Treasury Undersecretary for Domestic Finance Nellie Liang will speak at the Georgetown Univeristy Psaros Center for Financial Markets and Policy in Washington, D.C..
· Thursday, September 19, 9:30 a.m. – The Treasury Department’s Community Development Financial Institutions Fund holds a meeting of the Community Development Advisory Board for a report from the CDFI Fund Director on the activities of the CDFI Fund and panel discussions related to the advisory board's subcommittees.
Department of Commerce
· There are no significant events scheduled at this time.
Securities and Exchange Commission
· Wednesday, September 18, 10:00 a.m. – The SEC will hold an Open Meeting. The agenda is whether to amend Regulation NMS to “allow the minimum pricing increments for quoting of certain NMS stocks, reduce the access fee caps, and enhance the transparency of better priced order.”
· Thursday, September 19, 10:00 a.m. – the SEC’s Investor Advisory Committee meets at the SEC Headquarters. The committee will host two panels. The first is entitled “Investment Advice: A History and Update on Who is Required to Serve in Your Best Interest” and the second “Key Topics from Securities Litigation: Shareholder Proposals and “Tracing” in Section 11 Litigation.” The full agenda can be found HERE. And a full listing of the Advisory Committee members can be found HERE.
Commodities Futures Trading Commission
· Tuesday, September 17, 10:30 a.m. – CFTC Chair Rostin Behnam to speak at Georgetown University’s Psaros Center for Financial Markets and Policy Financial Markets Quality 2024.
· Wednesday, September 18, 11:00 a.m. (CDT) – CFTC Commissioner Summer K. Mersinger will participate in the 2025 Outlook Panel at the Futures Industry Association’s Forum: Commodities 2024 in Houston, Texas.
· Friday, September 20, 10:00 a.m. – The CFTC will hold an Open Meeting to consider Final Guidance regarding the Listing of Voluntary Carbon Credit Derivative Contracts.
FINRA
· There are no significant events scheduled at this time.
Federal Deposit Insurance Corporation
· Tuesday, September 17, 10:00 a.m. – The FDIC Board will hold an Open Meeting. The agenda includes a proposed rulemaking on Custodial Deposit Accounts as well as the FDIC’s final statement of Policy on Bank Merger Transactions.
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
· Thursday, September 19, 10:00 a.m. – The NCUA holds a board meeting.
Federal Trade Commission & Department of Justice Antitrust Division
· Thursday, September 19, 11:00 a.m. – The FTC will hold an Open Commission Meeting. The Commission will hear a staff presentation on the Social Media and Video Streaming Services 6(b) Orders and a staff presentation on the Rule on the Use of Consumer Reviews and Testimonials.
· Thursday, September 19, 1:00 p.m. – The FTC will hold an informal hearing on the Proposed Amendments to the Energy Labeling Rule.
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
· September 15 – 18, 2024 – SIFMA is holding its Ops2024 Conference in San Diego, California.
· September 18, 10:00 a.m. – The International Institute for Finance holds an online conference entitled “Energy Supply Ratio: Examining a New Climate Disclosure Metric.”
Think Tanks and Other Events
· Monday, September 16, 11:00 a.m. – The Wilson Center's Global Europe Program holds a discussion on "Cyprus Banks on the Frontline of Sanctions Compliance."
· September 17, 1:00 p.m. – The Peterson Institute for International Economics holds a virtual discussion entitled “The Economic Danger of Revoking China’s Permanent Normal Trade Status.”
· Wednesday, September 18, 2:00 p.m. – The Brookings Institution is holding an event entitled “Mobilizing the Market: The Barriers to Financing a More Scalable Climate Response” Ethan Zindler, the Climate Counselor at the US Treasury Department, will give the keynote remarks.
· Thursday, September 19, 5:00 p.m. – The American Enterprise Institute will hold an event entitled “The Forgotten Solution to the Housing Crunch: A Premier of the AEI Housing Center’s Documentary on Light-Touch Density.”
Please let us know if you have any questions or would like to be added to our email distribution list.
U.S. Regulatory Week Ahead
August 12 - 16, 2024
Giving You Back Your Five Minutes…
We want to give you back the five minutes you would normally spend reading the U.S. Financial Regulatory Week Ahead by saying right up front: There is nothing going on, and thus, there is nothing to read in this week’s report. Washington regulators are all out on vacation.
We Hope you are enjoying this quiet time, too. But, just for the record, below is a listing of the one event we could find scheduled – an SEC Closed Meeting on Thursday – taking place this coming week in Washington:
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
· The House is out of session for the month of August and returns to work on September 9.
US Regulatory Meetings & Events
Federal Reserve Board and Federal Reserve Banks
· There are no significant events scheduled at this time.
U.S. Treasury Department
· There are no significant events scheduled at this time.
Department of Commerce
· There are no significant events scheduled at this time.
Securities and Exchange Commission
· Thursday, August 15, 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
· 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
· 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
· There are no significant events scheduled at this time.
Think Tanks and Other Events
· There are no significant events scheduled at this time.
Please let us know if you have any questions or would like to be added to our email distribution list.
U.S. Financial Regulatory Week Ahead
Summer Break Comes to Washington
August 5 - 9 , 2024
Last week, we said the Dog Days of Summer were not officially here. Well, this week, they are here in force. Washington collectively ran out of town for the summer holidays. There is very little going on this coming week – no Fed speeches, no big regulatory agency meetings, no Congressional hearings, not many think tank events or trade association events. So, for now, we should all enjoy the quiet.
But last week was anything but quiet. The Federal Deposit Insurance Corporation (FDIC) issued a bipartisan agreement among the board on a proposed rulemaking to step up oversight of asset managers and the amount of shares in banks that they own. Until now, this has been a self-certification process with the asset managers promising to live by the rules. No more. Bank examiners will be looking much more closely at who owns what amount of shares in banks – something the asset management industry does not like. But when you have the FDIC Board – Republicans included – agreeing more has to be done, that is tough to fight back against. You can read all the materials and proposed rulemaking by the FDIC HERE.
But that was not the only action happening at the FDIC last week: The agency’s Inspector General released a scathing report further detailing the abusive atmosphere allowed to persist among employees, including how FDIC leadership failed to properly address allegations of sexual harassment of employees or to implement programs designed to prevent such misconduct. The Inspector General also revealed a separate report is forthcoming detailing “FDIC executives’ knowledge of harassment and related misconduct” as well as “factual findings regarding selected allegations that senior officials personally engaged in harassment or related misconduct.”
Somehow, FDIC Chair Martin Gruenberg continues to hold onto his seat, saying he will step down only when a replacement is confirmed by the Senate – which, considering the Senate Banking Committee failed to move on an expected confirmation vote last week, kicking it into September – makes us believe Gruenberg could be still sitting in the chair for months and months to come. That is a true scandal in and of itself.
Turning to Congress, the House of Representatives left for the summer break two weeks ago while the Senate was in session last week. Despite hanging around and extra week, they did not get two expected actions done: First, as mentioned above, the Senate Banking Committee did not move on the nomination of Christy Goldsmith Romero as the next FDIC Chair. Senate Banking Committee Chair Sherrod Brown (D-OH) put it off until September. But we think he will still have trouble moving the nomination forward as – so far – all Republicans oppose her nomination.
Over at the Senate Agriculture Committee, Chair Debbie Stabenow (D-MI) pulled back from marking up her crypto regulatory bill, also choosing to wait until the Senate comes back in September. We have a feeling the dynamics and concerns over the draft bill will be pretty much unchanged by then, ending Stabenow’s efforts (she is retiring at the end of this session).
Meanwhile, the House of Representatives – while out of session – still fired off two missives of note. First, the House Republican Environmental, Social, and Governance (ESG) Working Group—led by Oversight and Investigations Subcommittee Chairman Bill Huizenga (MI-04)—released its final staff report Thursday. The report is the culmination of the Working Group’s comprehensive examination of the factors contributing to the rise of ESG initiatives and the consequences for everyday investors, in addition to recommendations to protect American capital markets from the threats posed by these politically motivated mandates.
The report calls for legislative action on a number of major points, including:
Reform the proxy voting system to safeguard the interests of retail investors.
Promote transparency, accountability, and accuracy in the proxy advisory system.
Enhance accountability in shareholder voting by aligning voting decisions with the economic interests of shareholders.
Increase transparency and oversight of large asset managers to ensure their practices reflect the pecuniary interest of retail investors.
Improve ESG rating agency accountability and transparency to safeguard retail shareholders.
Strengthen oversight and conduct thorough investigations into federal regulatory efforts that would contort our financial system into a vehicle to implement climate policy.
Demand transparency, responsibility, and adherence to statutory limits from financial and consumer regulatory agencies.
Protect U.S. companies from burdensome European Union (“EU”) regulations, safeguarding American interests in global markets.
You can read the full report HERE.
And second, this past Wednesday, the Chairman of the House Financial Services Committee, Patrick McHenry (R-NC), and all the Committee Republicans sent a letter to Federal Reserve Chairman Jay Powell demanding the Fed withdraw and re-propose the Basel III Endgame rulemaking in its entirety, given the substantial changes to its original form. The letter follows Chairman Powell’s testimony before the Committee in support of re-proposal where he suggested it needed substantial re-writes. You can read the full letter HERE. It is another hammer blow against the draft rules, which are already on life-support as Fed Vice Chair for Supervision Michael Barr scrambles to salvage the proposal.
Below is a listing of all the other (very few) significant regulatory-related events this coming week:
U.S. Congressional Hearings
U.S. Senate
The Senate is out for the month of August and returns on September 9. No events are scheduled at this time.
House of Representatives
The House is out for the month of August and returns on September 9. No events are scheduled at this time.
US Regulatory Meetings & Events
Federal Reserve Board and Federal Reserve Banks
Monday, August 5, 4 p.m. – San Francisco Federal Reserve Bank President Mary Daly will discuss monetary policy and economic trends before moderated conversation hosted in partnership with the Hawaii Executive Collaborative in Hawaii.
Thursday, August 8, 3:00 p.m. – Federal Reserve Bank of Richmond Tom Barkin speaks virtually at The National Association for Business Economics.
U.S. Treasury Department
There are no significant events scheduled at this time.
Department of Commerce
There are no significant events scheduled at this time.
Securities and Exchange Commission
Thursday, August 8, 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
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, August 8, 10:00 a.m. – The FCA Board will meet to receive the annual report on the Farm Credit System’s Young, Beginning, and Small Farmers and Ranchers Mission 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
Wednesday, August 7, 12:30 p.m. – The Competitive Enterprise Institute holds a discussion on "A Global Antitrust Paradox?," focusing on "the effects of heightened antitrust scrutiny on U.S. industry and national security."
Think Tanks and Other Events
Wednesday, August 7, 8:30 a.m. – Politico is hosting an event entitled “Finding Balance: What’s Next for Social Security” in New York.
Thursday, August 8, 3:00 p.m. – The National Association for Business Economics holds a virtual discussion with Tom Barkin, president and CEO of the Federal Reserve Bank of Richmond.
Please let us know if you have any questions or would like to be added to our email distribution list.
U.S. Financial Regulatory Week Ahead
July 29 - August 2, 2024
The Dog Days of Summer in Washington Haven’t Quite Started Just Yet
Last week we said Washington’s financial regulatory world was entering the dog days of summer. That might have been a bit premature. First, we saw former President Donald Trump address the Bitcoin 2024 Conference in Nashville, Tennessee, where he promised to fire SEC Chair Gary Gensler and create a “strategic national bitcoin stockpile.” Financial regulation has now officially entered the 2024 presidential election debate!
Then, we saw the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued a request for information from the industry on bank’s partnerships with fintech firms. Specifically, the regulators want to hear about how banks are maintaining “effective risk management practices.” They also separately issues a joint-statement reminding banks’ of the potential risks of working with third-party companies that provide bank despot products and services.
The same trio of bank regulators also issued a notice requesting comment on interagency efforts to reduce regulatory burdens, focusing on consumer protection, the role of directors, officers, and employees, and money laundering.
Also this past week, FDIC Vice Chair Travis Hill stepped up and made a public call for scrapping the pending bank capital rules and starting over from scratch and not simply making modifications to the draft. He went on to argue the Basel-mandated rules, as currently drafted, may not be legal. Hill then presented a vision for a number of important bank regulatory issues. If former President Trump is elected, Hill is seen as his choice as FDIC Chair.
The Federal Courts were also active this past week as a federal judge in Texas stayed the long-suffering Department of Labor’s fiduciary rule.
Looking at the week ahead, the FDIC is holding an Open Meeting to consider new rules on industrial loan companies and brokered deposits. And the SEC is holding a Small Business Capital Formation Advisory Committee.
Up on Capitol Hill, the Senate Agriculture Committee is tentatively planning to mark up a crypto regulatory bill while the Senate Banking Committee might vote on the nomination of Christy Goldsmith Romero to be FDIC Chair (much depends on whether recently convicted Senator Bob Menendez (D-NJ), a member of the committee, will show up to vote. Following his recent federal bribery conviction, Menendez said he would resign.
But what will likely be the best event this week will be Capitol Account’s event in the Capitol Visitors Center. SEC Commissioner Mark Uyeda will participate in a fireside chat, giving great insights into the SEC’s agenda for the rest of the year and what to expect in the wake of the Chevron decision. You can watch it virtually, but you have to register, which you can do by clicking HERE.
Below is a listing of all the other significant regulatory-related events this coming week:
U.S. Congressional Hearings
U.S. Senate
Tuesday, July 30, 10:00 a.m. – The Senate Finance Committee holds a hearing entitled “Tax Tools for Local Economic Development.”
Tuesday, July 30, 10:00 a.m. – The Senate Commerce, Science and Transportation Tourism, Trade, and Export Promotion Subcommittee holds a hearing on "Enabling Rural Businesses to Grow at Home While Competing Abroad."
Tuesday, July 30, 2:30 p.m. – The Senate Banking Committee’s Economic Policy Subcommittee holds a hearing entitled “Banning Noncompete Agreements: Benefits for Workers, Businesses, and the Economy.”
Wednesday, July 31, TBD – The Senate Agriculture Committee is tentatively planning to hold a markup of Committee Chair Senator Debbie Stabenow’s (D-MI) draft crypto bill.
Wednesday, July 31, TBD – Senate Banking Committee Chair Sherrod Brown (D-OH) is floating the idea of voting to advance FDIC Chair-nominee Christy Goldsmith Romero’s nomination. However, with the pending resignation of Senator Bob Menendez (D-NJ following his recent criminal conviction, the committee will be one Democratic vote shy, and at this point, it appears there are no committee Republicans known to support the nomination. It is not clear if Menendez will show up or not. Also likely to be included in the vote would be the advancement of the nominations of Caroline Crenshaw to be an SEC Commissioner and current CFTC Commissioner Kristin Johnson to be an Assistant Secretary of the Treasury, and Gordon Ito to be a member of the FSOC.
House of Representatives
The House is out for the month of August. No events are scheduled at this time.
US Regulatory Meetings & Events
Federal Reserve Board and Federal Reserve Banks
Tuesday & Wednesday, July 30 – 31 – The Federal Reserve Board’s Federal Open Market Committee meets for two days to discuss the economy and interest rates. Fed Chair Jay Powell will hold a press conference at 2:00 p.m. on July 31.
U.S. Treasury Department
Tuesday, July 30, 9:00 a.m. – The Treasury Department holds a closed meeting of the Debt Management Advisory Committee to discuss topics related to the economy, financial markets, Treasury financing, and debt management, followed by a written report of its recommendations from the committee.
Thursday, August 1, 2:00 p.m. – The Treasury Department’s Advisory Committee on Risk-Sharing Mechanisms meets. The agenda for the meeting includes: Presentations addressing the Federal Insurance Office's partnership with the National Science Foundation to establish a new Industry-University Cooperative Research Center to provide research, analysis, and thought leadership to improve the insurance sector's modeling and underwriting of terrorism and catastrophic cyber risks; Hear a presentation by FIO staff on the 2024 Report on the Effectiveness of the Terrorism Risk Insurance Program and the International Forum of Terrorism Risk (Re)Insurance Pools Conference hosted by FIO in April 2024; and Roundtable discussion by the members to provide industry insight on the effectiveness of TRIP, terrorism insurance market conditions, ideas for private market risk-sharing mechanisms that can offset losses arising from acts of terrorism, and the administration of TRIP.
Department of Commerce
Thursday, August 1, 2:00 p.m. – The Commerce Department Economic Development Administration holds a virtual meeting of the National Advisory Council on Innovation and Entrepreneurship to discuss strategies to unlock sources of capital to leverage federal investments and designations, including current and future tech hubs, aligned with the Commerce Department's existing work in this area.
Securities and Exchange Commission
Tuesday, July 30, 10:00 a.m. – The SEC holds its Small Business Capital Formation Advisory Committee meeting. The Committee will continue its exploration of ways to expand access to early-stage capital raising and support underrepresented emerging fund managers, the Committee will explore recent changes to the SBIC program designed to increase access and diversify funding for small businesses, start-ups, and fund managers. The full agenda can be accessed HERE.
Thursday, August 1, 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.
Wednesday, July 30, 10:00 a.m. – The FDIC Board of Directors will hold an Open Session. You can find the full agenda HERE, which includes proposed rulemakings on brokered deposits, parent companies of Industrial Banks, and several other items.
Office of the Comptroller of the Currency
Thursday, August 1, 10:00 a.m. – The OCC, along with the FDIC and New York Department of Financial Services, are holding a Bankers Roundtable entitled “Access to Financial Products and Services for the Unbanked and Underbanked” in New York.
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
Wednesday, July 31, 10:00 a.m. – The FTC holds a hearing before the FTC’s Administrative Law Judge regarding the proposed merger of Kroger Company and Albertsons Companies.
Thursday, August 1, 10:00 a.m. – The FTC holds an Open Commission meeting to discuss Pharmacy Benefit Managers Report and their impact to access and affordability of medicines and then receive a presentation on Military Consumer Production.
Thursday, August 1, 3:30 p.m. – The FTC and the Department of Justice Antitrust Division will jointly hold a the first public hearing of the Strike Force on Unfair and Illegal Pricing.
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
There are no significant events scheduled at this time.
Think Tanks and Other Events
Tuesday, July 30, 10:00 a.m. – Capitol Account holds an event on investment advisers’ rules sponsored by Charles Schwab. SEC Commissioner Mark Uyeda participates in a fireside chat, An industry panel discussion features Jon Beatty, Head of Advisor Services, Charles Schwab; Karen Barr, President, Investment Adviser Association; James J. Burns, CEO/President, JJ Burns & Company and Stephen Johnson, Chief Counsel Wealth & Asset Management Legal Group, Charles Schwab. Location: Capitol Visitor Center, room SVC 215. Pre-registration is required for people without congressional identification. Click here to sign up.
Tuesday, July 30, 12:00 p.m. – The Federalist Society for Law and Public Policy Studies holds a virtual discussion, beginning at 12 p.m., on "Debanking: The Newest Threat to Free Speech and Religious Liberty?"
Wednesday, July 31, 6:00 p.m. – Axios holds a discussion on "Investment for Improvement," focusing on "how corporate investment in the economy can impact and reflect broader market trends, affect long-term inflation and drive financial growth for specific sectors and consumers."
Wednesday, July 31, 12:00 p.m. – The Competitive Enterprise Institute holds a "Lunch Briefing: De-Weaponization of Financial Regulation."
Please let us know if you have any questions or would like to be added to our email distribution list.
U.S. Financial Regulatory Week Ahead
July 22 - 26, 2024
The Dog Days of Summer are upon us in Washington. There is not much happening this coming week regulatory-wise, but we would note there are some interesting congressional hearings.
Of particular note, the Senate Permanent Subcommittee on Investigations (PSI) will hold a hearing on Zelle Fraud. Senior executives from Bank of America, J.P. Morgan, and Wells Fargo will testify about what exactly happened. PSI is an unusual Subcommittee in Congress with special powers to conduct deep investigations into virtually anything. But is long has been a source of intense investigations into financial services related fraud, its hearings can and often do lead to criminal indictments down the road from the US Department of Justice.
Also, this week, the Senate Banking Committee is holding a hearing about “Advancing National Security through Export Controls, Investment Security, and the Defense Production Act.” While a good piece of the hearing will likely focus on the national security aspects of trade with China, sanctions on Russia, and other related issues, we think there is a good chance this will quickly veer into aspects of Nippon Steel’s ongoing bid to acquire U.S. Steel. Considering the Chair of the Banking Committee is Senator Sherrod Brown (D-Ohio), a fierce critic of the deal who is in the re-election battle of his career, we cannot see him not taking the opportunity to speak out against the deal.
Finally, we will be watching FDIC Vice Chair Travis Hill speak this week at the American Enterprise Institute on proposed changes to banking regulation and resolution policies. If President Trump is elected in November, many see Hill as the natural choice to be the next FDIC Chair, so this could be a preview of his agenda in 2025.
Below is a listing of all the other significant regulatory-related events this coming week:
U.S. Congressional Hearings
U.S. Senate
· Tuesday, July 23, 3:30 p.m. – The Senate Permanent Subcommittee on Investigations holds a hearing on Zelle fraud, featuring executives from JPMorgan Chase, Bank of America, and Wells Fargo.
· Thursday, July 25, 10:00 a.m. – The Senate Banking Committee holds a hearing entitled “Advancing National Security through Export Controls, Investment Security, and the Defense Production Act.”
House of Representatives
· Tuesday, July 23, 10:00 a.m. – The House Agriculture Committee holds a hearing on "Financial Conditions in Farm Country."
· Tuesday, July 23, 10:00 a.m. – The House Financial Services Committee holds a hearing entitled “AI Innovation Explored: Insights into AI Applications I Financial Services and Housing.”
· Wednesday, July 24, 10:00 a.m. – The House Financial Services National Security, Illicit Finance, and International Financial Institutions Subcommittee holds a hearing on "Wasteful Spending and Inefficiencies: Examining DoD Platform Performance and Costs."
· Wednesday, July 24, 10:30 a.m. – The House Financial Services Committee holds a hearing on "Housing Solutions: Cutting Through Government Red Tape."
· Thursday, July 25, 8:30 a.m. – The House Agriculture Commodity Markets, Digital Assets, and Rural Development Subcommittee holds a hearing on "Reauthorizing the CFTC: Stakeholder Perspectives."
US Regulatory Meetings & Events
Federal Reserve Board and Federal Reserve Banks
· There are no significant events scheduled at this time.
U.S. Treasury Department
· There are no significant events scheduled at this time.
Securities and Exchange Commission
· Thursday, July 25, 12:00 p.m. – The Securities and Exchange Commission Office of Minority and Women Inclusion holds a virtual discussion with SEC Chair Gary Gensler.
Commodities Futures Trading Commission
· Tuesday, July 23, 9:30 a.m. – CFTC Commissioner Kristin N. Johnson will deliver the keynote address at the USDA Advisory Committee in Tarrytown, New York.
FINRA
· There are no significant events scheduled at this time.
Federal Deposit Insurance Corporation
· Wednesday, July 24, 2:00 p.m. – FDIC Vice Chair Travis Hill will speak at the American Enterprise Institute for Public Policy Research discussion on "Proposed Changes in Bank Regulatory and Resolution Policies."
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
· 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
There are no significant events scheduled at this time.
Think Tanks and Other Events
Wednesday, July 24, 9:00 a.m. – The Peterson Institute for International Economics holds a virtual discussion on "The Evolution of European Banking Supervision. “Claudia Buch, Chair of the European Central Bank Supervisory Board, will speak.
Wednesday, July 24, 8:00 a.m. – The Atlantic Council holds a conference entitled “The Atlantic "Shaping the Global Economy: From Food Security to Digital Transformation.”
Wednesday, July 24, 1:00 p.m. – The Federalist Society for Law and Public Policy Studies Corporations, Securities & Antitrust Practice Group holds a virtual discussion, beginning at 1 p.m., on "FTC Negative Option, Junk Fee, and Commercial Surveillance Rulemakings - Weighing Costs, Benefits and Litigation Risk in a Post-Chevron Environment."
Wednesday, July 24, 2:00 p.m. – The American Enterprise Institute for Public Policy Research holds a discussion on "Proposed Changes in Bank Regulatory and Resolution Policies." FDIC Vice Chair Travis Hill will speak.
Please let us know if you have any questions or would like to be added to our email distribution list.
U.S. Financial Regulatory Week Ahead
July 1 - 5, 2024
It is about to be the quietest week of the summer in Washington. Independence Day is on Thursday, and everyone is taking the whole week off. And after all the massive legal fireworks that happened last week, we (and virtually all financial regulators) badly need it.
If you haven't caught up yet, the U.S. Supreme Court handed down two pivotal decisions that significantly impacted regulators. The more seismic of the two rulings was the dismantling of the Chevron deference, a 40-year-old doctrine that mandated federal judges to defer to regulatory agencies 'reasonable' interpretation of 'ambiguous' federal laws.
What are the implications of Chevron's reversal? For those celebrating the ruling, "regulatory creep" in Washington is now in check. Hard stop. What we are curious about is what happens next – do we see a flood of lawsuits from various business organizations challenging regulations that have been put in place over recent years due to the Chevron deference? That could shake the financial regulatory framework to its core.
The second case saw the Supreme Court rebuking the Securities and Exchange Commission's use of their in-house court to resolve certain enforcement disputes. The 6-3 decision, hailed by conservative groups, is a significant rollback of 'regulatory creep' at the SEC. Practically, it means a defendant can compel the SEC to take their case to a jury trial – a costly, labor-intensive action that could deter the Commission from initiating a case.
Elsewhere, life does not get any easier for FDIC Chair Marty Gruenberg. The National Treasury Employees Union (NTEU) – which represents FDIC staff – is fighting Gruenberg's efforts to get employees back into the office. Last Friday, Gruenberg issued a new order requiring employees to show up at least two days a week, effective July 15. The NTEU says the order is illegal, and Gruenberg had not consulted with the union, accusing Gruenberg of "bad faith bargaining." At this point, you must think Gruenberg cannot wait to get out of the FDIC.
And there was the release of the annual stress test results from the Federal Reserve. All 31 banks passed the test – which gave an opening to virtually all the major bank trade groups to argue this is further evidence the Fed's proposed bank capital rule is not necessary.
Speaking of the proposed bank capital rule – the Fed began shopping around a "revised" (read: scaled back) version of the rule. The revision has not been seen publicly yet, but the rumor is the proposal will scale back the capital increase number to 5 percent from the original 16 percent plus, but our guess is two things will happen: Progressive Democrats in Congress will not be happy with it, and bank trade groups will not be satisfied, either, saying it was not scaled back enough. The fight will continue.
As for what is happening this coming week, the only two events or speeches we could find scheduled among financial regulators are overseas: Fed Chair Jay Powell will attend the European Central Bank Forum in Portugal, and CFTC Commissioner Caroline Pham will participate in a conference in Zurich.
Below is a listing of what is happening at the financial regulatory agencies this week and in Congress. Please let us know if you have any questions.
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
The Senate is out of session for the July 4 holiday and returns July 8.
House of Representatives
The House is out of session for the July 4 holiday and returns July 8.
Joint Committees
Congress is out of session for the July 4 holiday and returns July 8.
US Regulatory Meetings & Events
Federal Reserve Board and Federal Reserve Banks
Tuesday, July 2, 9:30 a.m. (Portugal time) – Federal Reserve Chair Jerome H. Powell will participate in a policy panel discussion at the European Central Bank (ECB) Forum on Central Banking 2024, Sintra, Portugal.
U.S. Treasury Department
There are no significant events scheduled at this time.
Securities and Exchange Commission
There are no significant events scheduled at this time.
Commodities Futures Trading Commission
Wednesday, July 3, 10:00 a.m. Zurich Time – CFTC Commissioner Caroline D. Pham will participate in a panel titled “Navigating and making sustainable the Al and DLT paradigm shift: Challenges and opportunities in the financial services market” at the Point Zero Forum in Zurich, Switzerland. Later in the day (11:50 a.m. Zurich time) she will participate in a “Capital Meets Policy” dialogue on the global AI regulatory landscape. And then at 1:30 p.m. Zurich time, Commissioner Pham will participate in a panel discussion entitled “Global policymakers’ dialogue on state of CBDCs and digital money regulations.”
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
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
Monday, July 1, 11:00 a.m. – The FTC will hold a Closed Commission Meeting.
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, July 2, 10:30 a.m. – The Institute for International Finance holds an online event entitled “Enhancing Debt Sustainability and the Investment Environment: The Latin American Context.”
Think Tanks and Other Events
Monday, July 1, 1:00 p.m. – The Atlantic Council's GeoEconomics Center holds a virtual event, beginning at 1 p.m., on "marking the 80th anniversary of the opening of the Bretton Woods Conference.
Please let us know if you have any questions or would like to be added to our email distribution list.
U.S. Financial Regulatory Week Ahead
June 10 - 14, 2024
This coming week will be another busy week for the financial regulatory world in Washington. Congress is working its way through the 2025 appropriations process, and that means we will see SEC Chair Gary Gensler and CFTC Chair Rostin Benham testifying in defense of their budgetary requests before the Senate Appropriations Committee. All this is important, but our view is there is little chance Congress will get all the funding bills done before the November election and or the end of the year, punting it to the new Congress in January.
But the big event this week will be in the House Financial Services Committee. Committee Chair Patrick McHenry (R-NC) has called for a hearing to examine the recent independent investigatory report on the FDIC's out-of-control culture under FDIC Chair Martin Gruenberg. While Gruenberg has said he will resign as soon as the Senate confirms a replacement, he also knows there is virtually no chance of that happening by the end of this year. Now, incredibly, he is refusing to show up to testify before the Financial Services Committee. In his place, two FDIC Directors, Acting Comptroller of the Currency Michael Hsu and FDIC Director Jonathan McKernan, along with the two external lawyers who conducted the investigation, will testify.
This is an extraordinary event in many ways. Many observers we have spoken to cannot remember seeing any agency or department head who has been shown to both tolerate such a poisonous culture and was also explicitly engaged in it defy calls to step down immediately and now refuse to answer questions from the congressional committee with direct oversight of his agency. In a word, Gruenberg seems to have gone rogue. Expect a lot of fireworks this week and massive new pressure for him to step down immediately.
Both the Senate Banking Committee and the House Financial Services Committee will host the annual "Consumer Financial Protection Bureau Semi-Annual Report to Congress" Events. CFPB Director Rohit Chopra, who is also an FDIC Director, will be the key witness at both hearings. Given the context, he will likely face numerous questions about Gruenberg's situation.
Below is a complete 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 12, 9:45 a.m. - The Senate Banking, Housing and Urban Affairs Committee holds a hearing on "The Consumer Financial Protection Bureau's Semi-Annual Report to Congress." CFPB Director Rohit Chopra will testify.
Wednesday. June 12, 10:00 a.m. - The Senate Finance Committee holds a hearing on "Youth Residential Treatment Facilities: Examining Failures and Evaluating Solutions."
Wednesday, June 12, 10:00 a.m.: The Senate Budget Committee will hold a hearing on "Making Wall Street Pay Its Fair Share: Raising Revenue, Strengthening Our Economy."
Thursday, June 13, 10:00 a.m. – The Senate Appropriations Subcommittee on Financial Services and General Government will hold a hearing “A Review of the President’s Fiscal Year 2025 Budget Requests for the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.” SEC Chair Gary Gensler and CFTC Chair Rostin Benham will testify.
House of Representatives
Wednesday, June 12, 10:00 a.m. – The House Financial Services Committee holds a hearing on "Oversight of the FDIC's Failed Leadership and Toxic Workplace Culture." Acting Comptroller of the Currency Michael Hsu, FDIC Director Jonathan McKernan, and two partners from Cleary Gottlieb Steen & Hamilton, the law firm that conducted the inquiry into the agency’s workplace troubles, are scheduled to testify. FDIC Chair Martin Gruenberg is refusing to testify.
Thursday, June 13, 10:00 a.m. – The House Financial Services Committee holds a hearing “The Semi-Annual Report of the Bureau of Consumer Financial Protection.” CFPB Director Rohit Chopra will testify.
Thursday, June 13, 10:00 a.m. – The House Budget Committee will hold a hearing on “Medicare and Social Security: Examining Solvency and Impact to the Federal Budget.” Paul Spitalnick, Chief Actuary for the Centers for Medicare and Medicaid Services, and Stephen Goss, Chief Actuary for the Social Security Administration, will testify.
Joint Committees
Wednesday, June 12, 3:00 p.m.: The Joint Economic Committee will hold a hearing on "Made in America: The Boom in U.S. Manufacturing Investment."
US Regulatory Meetings & Events
Federal Reserve Board and Federal Reserve Banks
Tuesday & Wednesday, June 11-12 – The Federal Open Market Committee holds a closed meeting to discuss the economy and interest rates. There will be a press conference held by Fed Chair Jay Powell on June 12 at 2:30 p.m.
U.S. Treasury Department
There are no significant events scheduled at this time.
Department of Housing and Urban Development
Thursday, June 13, 1:00 p.m. - The Housing and Urban Development Department will hold a virtual meeting of the Housing Counseling Federal Advisory Committee for presentations and discussion among HCFAC members.
Securities and Exchange Commission
Thursday, June 13, 10:00 a.m. – SEC Chair Gary Gensler will testify before The Senate Appropriations Subcommittee on Financial Services and General Government will hold a hearing “A Review of the President’s Fiscal Year 2025 Budget Requests for the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.”
Thursday, June 13, 2:00 p.m. – The SEC holds a Closed Meeting.
Commodities Futures Trading Commission
Thursday, June 13, 10:00 a.m. – CFTC Chair Rostin Behnam will testify before The Senate Appropriations Subcommittee on Financial Services and General Government will hold a hearing “A Review of the President’s Fiscal Year 2025 Budget Requests for the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.”
FINRA
There are no significant events scheduled at this time.
Federal Deposit Insurance Corporation
Thursday, June 12, 10:00 a.m. – FDIC Chair Martin Gruenberg has been called to testify (and is refusing to attend) the House Financial Services Committee holds a hearing entitled "Oversight of the FDIC's Failed Leadership and Toxic Workplace Culture." Acting Comptroller of the Currency Michael Hsu, FDIC Director Jonathan McKernan and two partners from Cleary Gottlieb Steen & Hamilton, the law firm that conducted the inquiry into the agency’s workplace troubles, are scheduled to testify.
Office of the Comptroller of the Currency
Wednesday, June 12, 10:00 a.m. – Acting Comptroller of the Currency Michael Hsu will testify before the House Financial Services Committee at a hearing entitled "Oversight of the FDIC's Failed Leadership and Toxic Workplace Culture." Also testifying will be FDIC Director Jonathan McKernan and two partners from Cleary Gottlieb Steen & Hamilton, the law firm that conducted the inquiry into the agency’s workplace troubles, are scheduled to testify.
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, June 13, 10:00 a.m. – The Farm Credit Administration holds a meeting for a quarterly report on economic conditions and farm credit system condition and performance and a semiannual report on Office of Examination operations.
The Federal Financial Institutions Examination Council
Wednesday, June 12, 10:00 a.m. – The Federal Financial Institutions Examination Council holds a virtual meeting of the Appraisal Subcommittee for FY2024 ASC budget reprogramming request and FY2024 notice of funding availability for the Appraisal Foundation.
International Monetary Fund & World Bank
Monday, June 10, 2:00 p.m. – The World Bank and The Atlantic Council hold a discussion on "From competition to competitiveness: Unlocking growth and productivity in Latin America and the Caribbean." Participants include World Bank Chief Economist for Latin America and the Caribbean William Maloney, World Bank Deputy Chief Economist for Latin America and the Caribbean Marcela Melendez, Andrea Budelmann, Partner at Butelmann Consultores, Maria-Leticia Ossa Daza, Partner at Paul Weiss, Juan Carlos Lopez , Chief correspondent at CNN en Espanol, and Santiago Levy , Former deputy minister of the Ministry of Finance and Public Credit of Mexico and Brookings Institution nonresident senior fellow will speak.
North American Securities Administrators Association
There are no significant events scheduled at this time.
Trade Associations & Think Tank Events
Trade Associations
Tuesday & Wednesday, June 11 -12 – SIFMA holds its Diversity and Inclusion Leadership Summit in New York.
Tuesday – Friday, June 11 – 14 – The American Bankers Association holds its Risk and Compliance Conference in Seattle, Washington.
Tuesday, June 11, 10:00 a.m. – The Institute for International Finance holds an online event, “Peru’s Economic and Policy Outlook.” The event will be conducted in Spanish.
Think Tanks and Other Events
·Tuesday, June 11, 9:30 a.m. – The Bipartisan Policy Center's Center for Housing Policy holds its 2024 Summit on Housing Supply Solutions.
Tuesday, June 11, 9:00 a.m. – The Peterson Institute for International Economics holds a virtual discussion on "China's Experience of Promoting Venture Capital Investment."
Friday, June 14, 9:30 a.m. – The Brookings Institution holds a conference on "The Federal Reserve's Review of Its Monetary Policy Framework." Former Federal Reserve Chair Ben Bernanke, senior economic studies fellow at the Brookings Institution, delivers welcoming remarks for an afternoon session. Also, Former Federal Reserve Vice Chair Donald Kohn, chair in international economics and senior economic studies fellow at the Brookings Institution, participates in a panel discussion
Please let us know if you have any questions or would like to be added to our email distribution list.
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.
U.S. Financial Regulatory Week Ahead
May 28 - 31, 2024
Summer has arrived in Washington with the celebration of Memorial Day on Monday. Congress is out of session for the week, and there are no significant regulatory meetings or speeches (aside from CFTC Chair Rostin Behnam and Commissioners Kristen Johnson and Caroline Pham giving speeches at the IOSCO meeting in Athens, Greece.
Last week in Washington's regulatory world was another busy one. The House of Representatives passed an anti-CBDC bill that would stop the Federal Reserve from launching a central bank digital currency. We do not see the Senate taking up the bill. Still, the issue won't disappear as we expect it to be a constant secondary political issue on the campaign trail (we get questions about the chances of the Fed moving on launching a CBDC constantly in talks we give around the country – there is a lot of concern out there about it).
The House also passed a crypto trading regulatory bill sponsored by House Financial Services Committee Chair Patrick McHenry (R-NC). Seen as a legacy-defining moment for McHenry, the bill got seventy-one Democrats to join with 208 Republicans to pass it. Among the Democrats who voted for it were former Speaker of the House Nancy Pelosi (D-CA) and House Minority Whip Katherine Clark (D-MA) – – despite the strong opposition of SEC Chair Gary Gensler.
Also last week, McHenry (R-NC) asked FDIC Chair Marty Gruenberg to testify on June 12 on misconduct allegations at the agency. McHenry wrote a letter to Gruenberg saying, "Republican and Democratic members alike noted an inability to fully understand your responses relate to both the toxic workplace culture at the FDIC and your leadership at the agency."
The pressure on FDIC Chair Marty Gruenberg to step down is intensifying, with calls for his immediate resignation even before a successor is nominated and confirmed by the Senate. The situation may have worsened for Gruenberg with the release of a memo from the FDIC Inspector General, which reported allegations of misconduct involving senior officials that were not promptly disclosed to her office. This development further underscores the gravity of the misconduct allegations at the agency.
Below is a listing of all the other significant regulatory-related events this coming week:
U.S. Congressional Hearings
U.S. Senate
The Senate is out for the week in observance of Memorial Day. However, the Senate Banking, Housing, and Urban Affairs Economic Policy Subcommittee (chaired by Senator Elizabeth Warren (D-MA) will hold a field hearing in Boston, Massachusetts, entitled "The Economic and Health Impacts of Threats to Reproductive Rights."
House of Representatives
The House is out for the week in observance of Memorial Day.
US Regulatory Meetings & Events
Federal Reserve Board and Federal Reserve Banks
Tuesday, May 28, 1:05 p.m. – Federal Reserve Board Governor Lisa Cook gives a speech entitled “AI and the Economy” at the Al-nomics: The Nexus of GenAI+ the Economy at the Federal Reserve Bank of San Francisco in San Francisco, California.
Tuesday, May 28, TBD – Federal Reserve Bank of San Francisco President Mary Daly will speak a the Al-nomics: The Nexus of GenAI+ the Economy at the Federal Reserve Bank of San Francisco in San Francisco, California.
U.S. Treasury Department
There are no significant events scheduled at this time.
Securities and Exchange Commission
There are no significant events scheduled at this time.
Commodities Futures Trading Commission
Monday, May 27, 11:00 a.m. Athens, Greece Time – CFTC Commissioner Kristin N. Johnson will participate in a Regulatory Workshop - “Retail Investor Protection in a Digital World: Finfluencers, Gamification and the Evolving Trading Landscape” at the IOSCO Annual Meeting in Athens, Greece.
Monday, May 27, 4:00 p.m. Athens, Greece Time – CFTC Commissioner Caroline D. Pham will speak at a Regulatory Workshop titled “New SupTech: Exchange of Experiences” at the 49th Annual Meeting of the International Organization of Securities Commissions (IOSCO) in Athens, Greece.
Wednesday, May 29, 1:00 p.m. Athens, Greece Time – CFTC Chairman Rostin Behnam will participate in a fireside chat at the CCP Global Annual General Meeting 2024 in Athens, Greece.
Wednesday, May 29, 2:45 p.m. Athens Greece Time – CFTC Chairman Rostin Behnam will keynote at the HCMC Public Conference “Climate in the Center of Economy” in Athens, Greece.
Wednesday, May 29, 3:45 p.m. Athens, Greece Time – CFTC Commissioner Caroline D. Pham will speak on a panel titled “Digital Finance, Fintech and Crypto Assets: Supervision Challenges and Experiences Including Issues relating to Sustainability” at the Hellenic Capital Market Commission (HCMC) Public Conference at the IOSCO Annual Meeting in Athens, Greece.
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
Wednesday, May 29 – 30 – The OCC hosts Project REACh Financial Inclusion Summit in Washington, D.C. Acting Comptroller of the Currency Michael Hsu will speak.
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
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
Monday/Tuesday, May 27 – 28 – The Institute for International Finance holds their IIF-Amazon Web Services-South East Asian Central Banks Centre Financial Services and Cloud Summit in Kuala Lumpur.
Monday, May 27, 3:00 a.m. EDT – The Institute for International Finance holds its IIF ASEAN and China Roundtable in Kuala Lumpur.
Think Tanks and Other Events
Friday, May 30, 2:30 p.m. – The Peterson Institute for International Economics holds a webcast entitled “Understanding the new dynamics of agri-food trade: Perspectives from Pascal Lamay.”
Please let us know if you have any questions or would like to be added to our email distribution list.
U.S. Financial Regulatory Week
May 20 - 24, 2024
This coming Monday is Memorial Day, the traditional beginning of Summer in Washington and the rest of the US. In advance of the three-day holiday, regulators are engaging in several meetings and speaking events. Of particular note, Federal Reserve Board Vice Chair for Supervision Michael Barr is giving two important speeches this week on regulation while the Atlanta Federal Reserve Bank is holding its 28th Annual Financial Markets Conference.
Also this week, the Investment Company Institute is holding its annual meeting in Washington, and SEC Chair Gary Gensler will speak and participate in a fireside chat to discuss issues of concern to the mutual fund industry.
Washington is still talking about the ongoing crisis at the FDIC in the wake of the independent report implicating FDIC Chair Marty Gruenberg for bullying and inappropriate behavior and tolerating bad behavior among senior managers. Gruenberg endured two grueling hearings before the House Financial Services Committee and Senate Banking Committee last week but seems to have survived as a number of Congressional Democrats came to his defense. Gruenberg continues to refuse to step down, but we believe the pressure will continue, and the situation will remain tense at the FDIC.
Also last week, the Consumer Financial Protection Bureau had a big week, triumphantly winning a Supreme Court case (7-2 vote) upholding the agency's legitimacy and ability to bring regulations against payday lenders. This ends years of uncertainty about the future of the CFPB and has boosted CFPB Director Rohit Chopra's agenda, which focuses on credit card fees. "The CFPB will be able to forge ahead with our law enforcement work," Chopra told reporters after the decision was handed down.
Reviewing Congress last week, the House Financial Services Committee moved several pieces of legislation for the full House of Representatives to vote on in the coming weeks. One is legislation making fewer banks subject to key regulations such as the Volcker Rule while scrutinizing the Federal Reserve's bank merger, stress testing, and discount processes. Another bill they passed would direct the SEC to conduct cost-benefit analyses of its rules and review them every five years.
Both bills have little chance of advancing once they pass the House and are sent to the Senate Banking Committee.
Below is a listing of all the other significant regulatory-related events this coming week:
U.S. Congressional Hearings
U.S. Senate
· Tuesday, May 21, 10:00 a.m. – The Senate Finance Committee holds a hearing entitled “Child Savings Accounts and Other Tax-Advantaged Accounts Benefitting American Children.”
· Wednesday, May 22, 2:30 p.m. – The Senate Banking Committee’s Economic Policy Subcommittee holds a hearing on "Protecting Consumers' Pocketbooks: Lowering Food Prices and Combatting Corporate Price Gouging and Consolidation."
House of Representatives
· Wednesday, May 22, 10:00 a.m. – The House Financial Services Housing and Insurance Subcommittee holds a hearing on "PHA (Public Housing Agencies) Oversight: How Scandals and Mismanagement Harm Residents and Taxpayers."
US Regulatory Meetings & Events
Federal Reserve Board and Federal Reserve Banks
· Sunday – Wednesday, May 19 – 22 – The Atlanta Federal Reserve holds its 28th Annual Financial Markets Conference. A number of central bankers, market participants, and other experts will be speaking.
· Monday, May 20, 7:45 a.m. – Atlanta Federal Reserve Bank President Raphael Bostic to give welcome remarks before the 2024 Financial Markets Conference hosted by the Federal Reserve Bank of Atlanta. Later that day, at 6:00 p.m., he will moderate a session at the Conference’s dinner.
· Monday, May 20, 9:00 a.m. – The Peterson Institute for International Economics hosts a virtual discussion entitled "The U.S. economy and monetary policy” with Federal Reserve Board Governor Christopher Waller.
· Monday, May 20, 10:30 a.m. – Federal Reserve Vice Chair Philip N. Jefferson gives a speech entitled “U.S. Economic Outlook and Housing Price Dynamics” at the Mortgage Bankers Association (MBA) Secondary and Capital Markets Conference, New York, N.Y.
· Tuesday, May 21, 8:00 a.m. – Richmond Federal Reserve Bank President Thomas Barkin to give opening remarks before the"2024 Investing in Rural America Conference: Building and Maintaining Momentum" hosted by the Federal Reserve Bank of Richmond.
· Tuesday, May 21, 8:10 a.m.: Atlanta Federal Reserve Bank President Raphael Bostic will give "welcome back" remarks before the 2024 Financial Markets Conference hosted by the Federal Reserve Bank of Atlanta.
· Tuesday, May 21, 8:45 a.m.: New York Federal Reserve Bank President John Williams will give the opening remarks at the 2024 Governance and Culture Reform Conference.
· Tuesday, May 21, 9:00 a.m. – Federal Reserve Board Governor Christopher J. Waller gives welcoming remarks at the Third Conference on the International Roles of the U.S. Dollar, Washington, D.C.
· Tuesday, May 21, 6:00 p.m. – Atlanta Federal Reserve Bank President Raphael Bostic to moderate the "Central Banking in the Post-Pandemic Financial System" panel before the 2024 Financial Markets Conference hosted by the Federal Reserve Bank of Atlanta.
· Monday, May 20, 9:00 a.m. – Federal Vice Chair for Supervision Michael S. Barr entitled “Monetary Policy and Bank Regulation” at the 2024 Financial Markets Conference, Fernandina Beach, Florida.
· Thursday, May 23, 2:00 p.m. – Atlanta Federal Reserve Bank President Raphael Bostic to participate in a virtual question-and-answer session with students in MBA macroeconomic class at the Stanford Graduate School of Business.
· Friday, May 24, 9:35 a.m. – Federal Reserve Board Governor Christopher J. Waller gives a speech at the Reykjavik Economic Conference, Reykjavik, Iceland.
U.S. Treasury Department
· There are no significant events scheduled at this time.
Securities and Exchange Commission
· Wednesday, May 23, 8:30 a.m. – SEC Chair Gary Gensler will participate in a fireside chat at the Investment Company Institute’s 2024 Leadership Summit in Washington, DC.
· Thursday, May 24, 11:00 a.m. – Thursday at 11:00 a.m., SEC Enforcement Director Gurbir Grewal and other division officials will speak at the Securities Enforcement Forum West 2024 conference.
Commodities Futures Trading Commission
· Monday, May 20, 11:00 a.m. London Time – CFTC Commissioner Christy Goldsmith Romero will speak on a panel discussing international financial regulation at City Week 2024.
· Tuesday, May 21, 11:00 a.m. London Time – CFTC Commissioner Caroline D. Pham will speak at a featured fireside chat on the CFTC’s role in regulating digital assets at City Week 2024.
· Wednesday, May 22, 9:10 a.m. London Time – CFTC Commissioner Christy Goldsmith Romero will participate in a keynote interview at the Financial Times’ Moral Money Summit.
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
· There are no significant events scheduled at this time.
National Credit Union Administration
· Wednesday, May 22, 10:00 a.m. – the NCUA Board holds an open meeting. You can find the agenda HERE.
Federal Trade Commission & Department of Justice Antitrust Division
· Monday, May 20, 1:00 p.m. – The FTC holds a closed meeting.
· Wednesday, May 23, 1:00 p.m. – The FTC holds an Open Meeting.
· Wednesday, May 23, 2:00 p.m. – The FTC holds an event entitled “Supporting Older Adults to Fight Against Fraud”
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 – Wednesday, May 21 – 23 – The Investment Company Institute holds the 2024 Leadership Summit in Washington, D.C. House Financial Services Committee Chair Patrick McHenry (R-NC) and SEC Chair Gary Gensler will speak.
Think Tanks and Other Events
· Tuesday, May 21, 9:00 a.m. – The Peterson Institute for International Economics holds a virtual discussion, beginning at 9 a.m., on "The U.S. economy and monetary policy” with Federal Reserve Board Governor Christopher Waller.
· Tuesday, May 21, 10:00 a.m. – The Brookings Institution holds a discussion entitled “Powering US prosperity and competitiveness through place-based investment”. Alejandra Castillo, the Assistant Secretary of Commerce for Economic Development, will speak.
· Tuesday, May 21, 12:30 p.m. – SIFMA holds a Department of Labor Fiduciary Rule Implementation Workshop.
· Tuesday, May 21, 2:30 p.m. – The R Street Institute holds a discussion entitled “Insurance Fraud: the 300 Billion Dollar Crime.”
· Tuesday, May 21, 3:00 p.m. – The Cato Institute holds a virtual discussion entitled “Would Proposed Antitrust Changes Help or Harm Startups and Small Business?”
· Tuesday, May 22, 11:00 a.m. – SIFMA holds their latest webinar on U.S. – China relations entitled “U.S. – China Relations: Technology National Security, and Financial Services.”
· Wednesday, May 22, 8:00 a.m. – The Institute for International Finance holds an online discussion entitled “IIF Datatalk: Bigtech, Platforms, and Financial Services.”
· Wednesday, May 22, 1:00 p.m. – The American Enterprise Institute holds an in-person/virtual event entitled “The Federal Reserve and Financial Stability Risk.”
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