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

April 8 - 12, 2024

Congress—and much of the rest of Washington—returns to work this week after recess and spring break holidays.  And it is going to be a busy week.  For the broader market, we recommend paying attention to the Federal Trade Commission and Department of Justice Antitrust Division co-hosting the 3rd Annual Enforcers Summit. 

To further define and advance the Biden Administration's policy approach to competition policy across the board – antitrust to securities enforcement – FTC Chair Lina Kahn and Justice Department Assistant Attorney General for Antitrust Jonathan Kanter will speak to their efforts to unify efforts with other major regulators of every sector.  To best illustrate this effort, SEC Chair Gary Gensler will join them in discussing this coordinated effort.  The implications for bank mergers and other financial services deals are enormous as the FTC and DoJ are now taking highly active roles in reviewing deals.

Meanwhile, we will watch two events closely as they are aimed at the Federal Reserve Board's recent capital increase proposal: The Federalist Society will hold a panel discussion entitled "Navigating the Capital Adequacy Rule: Legal and Policy Perspectives" in Washington, D.C.  The panelists will include former Federal Reserve Vice Chair for Supervision Randy Quarles, former Secretary of Labor and Gibson Dunn Partner Eugene Scalia, Peter Conti-Brown, Professor of Financial Regulation, Wharton School at the University of Pennsylvania, and Trent McCotter, Partner, Boyden Gray PLLC.  Meanwhile, Federal Reserve Board Governor Michelle Bowman will speak on the Basel capital requirements in the face of stiff resistance to the Fed's recent capital requirement proposal (which she, too, opposes). 

Also this week, FDIC Chair Marty Gruenberg will present a comprehensive update on how the FDIC has prepared for the orderly resolution of a GSIB under Title II of the Dodd-Frank Act at the Peterson Institute.  With the one-year anniversary last month of the collapse of Silicon Valley Bank and ongoing concerns about the effectiveness of the liquidation process of both domestic and international banks, it is going to be a timely speech.

Below is a listing of all the other major regulatory related events this coming week:

U.S. Congressional Hearings

U.S. Senate

• Tuesday, April 9, 10:00 a.m. – The Senate Banking Committee holds a hearing to receive an update from the Treasury Department on Countering Illicit Finance, Terrorism, and Sanctions Evasion.  Deputy Secretary of Treasury Adewale Adeyemo will testify.

• Tuesday, April 9, 10:00 a.m. – The Senate Budget Committee will hold a hearing entitled “Sunny Places for Shady People: Offshore Tax Evasion by the Wealthy and Corporations."

• Wednesday, April 10, 2:30 p.m. – The Senate Banking Committee’s Economic Policy Subcommittee will hold a hearing entitled “MOHELA’s Performance as a Student Loan Servicer.”

House of Representatives

• Wednesday, April 10, 10:00 a.m. – The House Financial Services Committee holds a hearing entitled “Beyond Scope: How the SEC’s Climate Rule Threatens American Markets.”

US Regulatory Meetings & Events

Federal Reserve Board and Federal Reserve Banks

• Wednesday, April 10, 8:45 a.m. – Federal Reserve Board Governor Michelle W. Bowman will participate in a virtual discussion entitled “Basel Capital Requirements” at the European Bank Executive Forum.

• Thursday, April 11: The Urban Financial Services Coalition holds its 50th anniversary in Kansas City and hosted by the Reserve Bank of Kansas City.  Atlanta Federal Reserve Bank President Raphael Bostic will participate in a moderated panel entitled “Leadership in Financial Services.”

U.S. Treasury Department

• Monday, April 8, 12:00 a.m. Beijing time – U.S. Treasury Secretary Janet L. Yellen will hold a news conference on the U.S. and China bilateral economic relationship.

• Thursday, April 11, 1:00 p.m. – U.S. Undersecretary of Treasury for International Affairs Jay Shambaugh will speak at the Peterson Institute on “The US Vision for Global Debt and Development Finance.”

• Thursday, April 11, 1:30 p.m. – The Treasury Department’s Community Development Financial Institutions Fund holds a meeting of the Community Development Advisory Board to provide advice to the director of the Community Development Financial Institutions fund on the policies regarding the activities of the CDFI fund.

Securities and Exchange Commission

• Monday, April 8, 9:45 a.m. – SEC Chair Gary Gensler will participate in the “Whole of Government Approach to Competition Policy” panel as part of the third annual Enforcers Summit hosted by the Federal Trade Commission and the Justice Department’s Antitrust Division. A webcast of the panel will be available. You can find HERE.

• Thursday, April 11, 2:00 p.m. – The SEC will hold a Closed Meeting.

Commodities Futures Trading Commission 

• Tuesday, April 9, 2:30 p.m. Hong Kong - Commissioner Caroline D. Pham will speak on a panel titled “The New World of Digital Assets” at HSBC’s Global Investment Summit, the Conrad Hotel Hong Kong.

• Wednesday, April 10, 12:00 p.m. CDT – The CFTC’s Energy and Environmental Markets Advisory Committee will meet in Kansas City at the University of Missouri – Kansas City.  The EEMAC will continue its discussion on the federal prudential financial regulators’ proposed rules implementing Basel III and the implications for and impact on the derivatives market. There will also be presentations and discussions on the state of crude oil markets and the future of power markets. Finally, the two EEMAC subcommittees will offer updates on their continued work related to traditional energy infrastructure and metals markets. 

• Wednesday, April 10, 9:00 a.m. ET – CFTC Commissioner Kristin N. Johnson will deliver the opening keynote at AI Civil Rights and Human Rights: Visioning the Future of Rights in AI Governance, an AI Civil and Human Rights Policy Roundtable and Book Workshop, in dialogue with Professor Catherine Powell, Senior Advisor at the White House Gender Policy Council. The discussion will be moderated by Charlton McIlwain, NYU Vice Provost for Faculty Development, Pathways & Public Interest Technology. The event is hosted by NYU’s Center for Critical Race & Digital Studies, the NYU Alliance for Public Interest Technology, New America’s Public Interest Technology University Network, and the Digital Democracy Lab at William & Mary Law School.

• Wednesday, April 10, 4:30 p.m. ET – CFTC Commissioner Christy Goldsmith Romero will speak at the Institute for Business in Global Society on Tackling the Challenges of Responsible AI at Harvard Business School in Boston, Massachusetts.

• Wednesday, April 10, 5:00 p.m. CT/6:00 p.m. ET – CFTC Chair Rostin Behnam will participate in a lecture at the University of Chicago Law School in Chicago, Illinois.

• Thursday, April 11, 9:30 a.m. CDT – The CFTC’s Agricultural Advisory Committee will meet in Overland Park, Kansas.

• Thursday & Friday, April 11-12 – The CFTC and the Center for Risk Management Education and Research at Kansas State University will host the 3rd Agricultural Commodity Futures Conference (AgCon2024).  The Conference will be held at the Sheraton Overland Park Hotel in Overland, Kansas.

FINRA

• There are no significant events scheduled at this time.

Federal Deposit Insurance Corporation

• Wednesday, April 10, 10:00 a.m. – FDIC Chair Marty Gruenberg will present a comprehensive update of how the FDIC has prepared for the orderly resolution of a GSIB under Title II of the Dodd-Frank Act.

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, April 8, 9:15 a.m. – 12:15 p.m. ET – The Federal Trade Commission and the Justice Department’s Antitrust Division will cohost a Spring Enforcers Summit for international and state competition enforcement officials in Washington, D.C.   The event will begin with Assistant Attorney General for Antitrust Jonathan Kanter and FTC Chair Lina Kahn speaking about the 2021 Whole of Government Executive Order.    They will then turn to two panels focusing on Whole of government Approach to Competition Policy and “From Farmer to Grocer: Concerns in the Food Supply Chain.”

Farm Credit Administration

• Thursday, April 11, 10:00 a.m. – The FCA Board of Directors will meet in both open and closed session.  In closed session, the board will receive the Quarterly Report on Economic Conditions and Farm Credit System Conditions and Performance.

International Monetary Fund & World Bank 

• Thursday, April 11, 9:00 a.m. – IMF Managing Director Kristalina Georgieva will give an address on the state of the global economy at the Atlantic Council in Washington, D.C.

Trade Associations & Think Tank Events

Trade Associations

• Tuesday, April 9, 8:00 a.m. - The Bitcoin Policy Summit will be held at the National Press Club in Washington, D.C.

• Tuesday, April 9, 10:00 a.m. – The Institute for International Finance will hold (in Spanish) an online briefing entitled “U.S. Election Implications for Latin America.”

• Tuesday, April 9, 1:30 p.m. – The Institute for International Finance launches Chapter 3 of the International Monetary Fund’s April 2024 Global Financial Stability Report.  The event will be online and in person in Washington, D.C.

• Wednesday, April 10 – The Security Traders Association holds its 2024 Washington Spring Conference.   A number of members of Congress as well as senior SEC Staff will speak.

• Thursday, April 11, 8:00 a.m. ET – The Institute for International Finance hosts virtually “Talking Policy with Giuseppe Siani, Director General, Financial Supervision and Regulation, Banca D’Italia.”

Think Tanks

• Monday, April 8, 12:30 p.m. ET – The Brookings Institute holds a roundtable entitled “Wall Street Comes to Washington Health Care” at their Washington, D.C. headquarters.

• Tuesday, April 9 – 10 – The Aspen Institute holds its Employee Ownership Ideas Forum in Washington, D.C.  Sen. Chris Van Hollen, (D-Md.), participates in a discussion on "Hometown Ownership: The Impact of Employee Ownership in Rural Communities" and later  Health, Education, Labor and Pensions Chairman Bernie Sanders, (I-Vt.); and Alex Jacquez, special assistant to the president for economic development and industrial strategy at the National Economic Council, participate in a discussion on "Federal Agencies Supporting Employee Ownership."

• Wednesday, April 10, 10:00 a.m. – FDIC Chair Marty Gruenberg will present a comprehensive update of how the FDIC has prepared for the orderly resolution of a GSIB under Title II of the Dodd-Frank Act at the Peterson Institute for International Economics.

• Wednesday, April 10, 12: p.m. – The Federalist Society holds a panel discussion entitled “Navigating the Capital Adequacy Rule: Legal and Policy Perspectives” in Washington, D.C.  The panelists will include former Federal Reserve Vice Chair for Supervision Randy Quarles, former Secretary of Labor and Gibson Dunn Partner Eugene Scalia, Peter Conti-Brown, Professor of Financial Regulation, Wharton School at the University of Pennsylvania, and Trent McCotter, Partner, Boyden Gray PLLC.

• Thursday, April 11, 9:00 a.m. – IMF Managing Director Kristalina Georgieva will give an address on the state of the global economy at the Atlantic Council in Washington, D.C.

• Thursday, April 11, 9:00 a.m. – the Peterson Institute for International Economics will hold a discussion entitled “The Rise and Decline of Venture Capital in China.”  

• Thursday, April 11, 12:00 p.m. – U.S. News & World Report will hold a webinar entitled “Making Sense of the 2024 Housing Market During Spring Homebuying Season.”

• Thursday, April 11, 1:00 p.m. – U.S. Undersecretary of Treasury for International Affairs Jay Shambaugh will speak at the Peterson Institute on “The US Vision for Global Debt and Development Finance.”

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