U.S. Financial Regulatory Week Ahead
July 31 - August 4, 2023
Washington became a ghost town today (Friday, July 28th). The US House of Representatives adjourned Thursday night until September 5, and the US Senate adjourns today until September 5, too. All the major financial regulators concluded their business this past week before they, too, headed for the beach for August. Thus, next week is going to be extraordinarily quiet. The only regulatory meeting we see on the calendar is an SEC closed meeting.
But regulators kept busy right up to the end of the week, issuing an important joint guidance notice late Friday afternoon. Specifically, the Federal Reserve, FDIC, OCC, and National Credit Union Administration issued updated guidance to ensure banks and credit unions understood their ability to use the Fed’s discount window (You can read the guidance statement HERE.). The reason for the notice now is there have been questions as to whether prompt usage of the discount window could have fended off the collapse of Silicon Valley Bank.
Also, this past week, the big event was the release of new proposed bank capital standards by the FDIC and Federal Reserve. The only big surprise from the proposal was news that Fed Chair Jay Powell had voiced concerns about the proposal. Powell voted in favor of the proposal, but two other Fed Governors, Michelle Bowman and Christopher Waller, voted no. Congressional opponents of the proposal quickly picked up on Powell’s reticence and the two “no” votes and are now planning hearings in September demanding statistical analysis of how the proposal was crafted. We will keep you updated on that as soon as they are scheduled.
Also happening this past week was the Financial Stability Oversight Council (FSOC) meeting on Friday to consider several issues, including the transition from LIBOR, climate-related regulations, and updates on the mortgage market. No major proposals came from it. You can review the Treasury Department’s official Readout of the meeting HERE.
Below is what else is happening in the US regulatory world next week (which is, as we said above, pretty much nothing):
U.S. Congressional Hearings
Both the House of Representatives and Senate are in Summer recess until September 5, 2023. There are no hearings scheduled.
US Regulatory Meetings
Thursday, August 3/2:00 p.m. – The US Securities and Exchange Commission holds a closed meeting.
NOTE: The Federal Reserve, Commodities Futures Trading Commission, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Consumer Financial Protection Bureau, and National Credit Union Administration have no major meetings or speeches scheduled this coming week.
Think Tank Events
There are no think tank events of note this coming week focused on financial services or financial regulation.