U.S. Financial Regulatory Week Ahead

Sep 28

Washington Goes Quiet in Advance of the November Elections, the FDIC Is Going to Take A Look At Credit Union Acquisitions of Community Banks, and FDIC Chair Gruenberg Is Still There And Will be Well into 2025

September 30 - October 4, 2024

With Congress passing a stop-gap funding bill keeping the federal government running until late December and the elections a little over a month away, Washington got very quiet at the end of the week. Congress is a ghost town again, now until after the election. In the coming week, regulators are taking advantage of the change in tempo and also not to do much publicly.

Probably the three biggest events this coming week are a fireside chat FDIC Vice Chair Travis Hill is doing at the Women in Housing and Finance event. All ears will be open—especially among the community bank community—as reports circulated last week that the FDIC is going to take a closer look at credit unions buying up community banks, something that reached an all-time record high this year.

The second event of note is Fed Governor Lisa Cook's speech in Atlanta on Tuesday entitled "AI, Big Data, and the path ahead for Productivity." Her speech will be at a conference entitled "AI, Big Data, and the Path Ahead for Productivity" at the Conference on "Technology-Enabled Disruption: Implications of AI, Big Data, and Remote Work." So, it's safe to say her remarks will touch every sector, from banking to manufacturing to big tech.

Finally, the Treasury Department will hold a virtual meeting of its Financial Research Advisory Committee to examine technology vulnerabilities in the financial sector, AI, and central counterparties and a demonstration of new hedge fund monitoring systems.

Looking at what happened last week of note, the Senate Banking Committee canceled its hearing with SEC Chair Gary Gensler at the last minute. Senate Banking Committee Chair Sherrod Brown (D-OH) said it was because of numerous scheduling issues. But Brown also failed to hold a vote on FDIC Chair nominee Christi Goldsmith Romano. This means a committee vote will not happen until late November – if ever. This means FDIC Chair Marty Gruenberg will continue to sit in the chair despite his role in the scandals there until at least February, if not longer. Everyone knew this was going to happen when Romano was nominated – the White House. Chair Brown. Everyone. But here we are.

Finally, it should be noted the Treasury Market Conference held at the New York Fed happened and while there were few headline speeches, Fed Vice Chair Michael Barr once again spoke of his efforts to finalize bank capital rules as well as to finding a way to make it normal for banks to access the Fed discount window and not be seen as potentially troubled publicly. We will be interested in seeing how this plays out.

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 in a Pro Forma session and is not returning to work until after the election. No work and no hearings are scheduled. They will return to work on November 12.

House of Representatives

· The House is out of session until after the November elections. No business or hearings are scheduled. They will return to work on November 12.

US Regulatory Meetings & Events

Federal Reserve Board and Federal Reserve Banks

· Monday, September 30, 8:50 p.m. – Federal Reserve Board Governor Michelle W. Bowman gives a speech entitled “Economic Outlook and Monetary Policy” at the Georgia Bankers Association President/CEO Conference, Charleston, South Carolina.

· Monday, September 30, 1:55 p.m. – Federal Reserve Board Chair Jerome H. Powell gives a speech on the economic outlook at the National Association for Business Economics (NABE) Annual Meeting in Nashville, Tennessee.

· Tuesday, October 1, 11:10 a.m. – Federal Reserve Board Governor Lisa D. Cook gives a speech entitled “AI, Big Data, and the Path Ahead for Productivity” at the Conference on “Technology-Enabled Disruption: Implications of AI, Big Data, and Remote Work," Atlanta, Georgia.

· Wednesday, October 2, 11:00 a.m. – Federal Reserve Board Governor Michelle W. Bowman gives a speech entitled “Building the Community Banking Framework for the Future” at the 2024 Community Banking Research Conference, St. Louis, Missouri.

U.S. Treasury Department

· Tuesday, October 1, 10:00 a.m. – The Treasury Department holds a virtual meeting of the Financial Research Advisory Committee. The agenda includes: Technology vulnerabilities; Cybersecurity; Artificial intelligence; Central counterparties; Hedge fund monitor demonstration; and Update from the Office of Financial Research Data Center.

Department of Commerce