Fulcrum Perspectives

An interactive blog sharing the Fulcrum team's policy updates and analysis.

Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

March 11 - 15, 2024

Last week was quite an epic week in the financial regulatory world, and from where we sit, it seems the regulators got the worst of it.

As noted in last week's report, the SEC finally released Chair Gary Gensler's long-awaited Climate Disclosure regulatory proposal.  And it landed with a thud, seemingly making no one happy.   Progressive Democrats are angry Chair Gensler weakened the original draft to exclude supply chain climate impact while Corporate America and a number of states hated the whole thing – so much so that the state attorney generals of Louisiana, Mississippi, and Texas immediately filed a joint lawsuit in the 5th Circuit Court of Appeals – joining ten other Republican-led states led by West Virginia – asking the proposed 900 page-plus rules be struck down for overstepping the SEC's powers. 

In addition to these suites, two energy companies have also filed suits, and we almost assuredly will see even more suits coming from business groups in the coming weeks.  It will be a long, hard slog ahead for the SEC's rule proposal to survive.

Also, this past week, the U.S. Chamber of Commerce, the American Bankers Association, and the Consumer Banking Association filed a joint federal lawsuit seeking to bar the Consumer Financial Protection Bureau (CFPPB) from implementing its new cap on crediPlus, there is a growing chorus of members of Congress quite unhappy with the price cap proposal, and you can see the CFPB proposal in the mounting pile of Biden Administration regulatory proposals facing serious litigation risk of being struck down.

Meanwhile, the House of Representatives passed a large package (22 combined bills) seeking to scale back securities regulation impacting access to private capital.  The SEC regulations – also facing separate litigation in federal courts – stirred up a hornet's nest on Capitol Hill when passed.  The Bide White House has indicated they intend to veto the legislation if it ever lands on the President's desk – but let's see first if it has a chance of passage in the Senate as a stand-alone bill (which we think it does not).

Also, this past week, Federal Reserve Board Chair Jay Powell, during his separate House and Senate Semi-Annual Monetary Reports to Congress, heard repeated push-back on the Fed-led effort to increase large bank capital standards.  From what we heard from Powell's answers, it sounds like the capital proposal will likely face significant revisions – something Acting Comptroller of the Currency Michael Hsu suggested in a speech this past week, too.

Notably, Powell also made clear that the Fed is nowhere near close to issuing a central bank digital currency (CBDC)  or any other crypto-related currency—something conservative Congressional members are strongly opposed to.

This coming week, we will be watching the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion hold a tough oversight hearing on the CFPB's activities – surely focusing heavily on how the Agency came up with the $8 cap on credit card fees. 

Also this week, the Futures Industry Association and the Institute for International Bankers are holding their respective annual member meetings, and a fairly wide assortment of regulators are speaking.

Below are all the major regulatory events we are watching this coming week:

 

U.S. Congressional Hearings 

U.S. Senate

 

House of Representatives

 

 

Joint Committees

 

US Regulatory Meetings & Events

White House

 

Federal Reserve Board and Federal Reserve Banks

  • The Federal Reserve is in its “Blackout Period” in advance of the Federal Open Market Committee meeting on March 20 & 21.

 

U.S. Treasury Department

  • There are no significant events scheduled at this time.

 

Securities and Exchange Commission

  • Thursday, March 14, 2:00 p.m. – The SEC holds a Closed Meeting.

 

Commodities Futures Trading Commission

 

 

 

FINRA

  • There are no significant events scheduled at this time.

 

Federal Deposit Insurance Corporation

 

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, March 14, 10:00 a.m. – The Farm Credit Administration will hold a closed meeting in McLean, Virginia, to approve the minutes for February 8, 2024 (Open), and the Office of Secondary Market Oversight periodic report.

 

Farm Credit System Insurance Corporation

  • There are no significant events scheduled at this time.

 

Import/Export Bank

  • There are no significant events scheduled at this time.

 

World Bank

  • There are no significant events scheduled at this time.

 

 

Trade Associations & Think Tank Events

Trade Association Events/Public Events

 

Think Tank Events

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

Read More
Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

March 4 - 8, 2024

This coming week will be momentous in the Washington regulatory world as the SEC finally unveils its long-awaited climate disclosure rules on Wednesday.  The new rules are designed to require corporations to disclose their carbon footprint in SEC filings.  Climate activists and the Biden Administration view these rules as the cornerstone of their climate strategy, while corporations dread the likely enormous scope of the reporting requirements and accompanying liabilities.

But in recent weeks, SEC Chair Gary Gensler appears to have scaled back the draft requirements, worrying climate activists he may have watered them down too much.  Whatever emerges Wednesday, business organizations are almost certain to file federal lawsuits challenging the proposals.  And considering the SEC’s track record in federal court under Chair Gensler, the betting line is not in the SEC’s favor (we are still trying to figure out when Congress gave the SEC authority to regulate carbon emissions – isn’t that the Environmental Protection Agency’s job?  Just asking…).

Also, this week, Federal Reserve Board Chair Jay Powell will give his semi-annual Monetary Policy Report before the House Financial Services Committee (on Wednesday) and the Senate Banking Committee (on Thursday).  Powell will undoubtedly be asked tough questions about the Fed’s proposed bank capital rules, which seem increasingly imperiled by opposition from a growing variety of critics – including two Fed Governors (Christopher Waller and Michelle Bowman), who have been quite outspoken in their criticism of the proposal.

Also this week, we will be listening closely as Federal Reserve Board Vice Chair for Supervision Michael Barr, Acting Comptroller of the Currency Michael J. Hsu, and FDIC Chairman Martin J. Gruenberg The 2024 National Interagency Community Reinvestment Conference where they will be defending the new Community Reinvestment regulations – which are also the target of a major lawsuit from banking and industry advocacy groups.  

Finally, it will be worth paying close attention to the Federal Trade Commission’s workshop entitled “Private Capital, Public Impact: An FTC Workshop on Private Equity in Health Care.” Department of Justice Assistant Attorney General for Antitrust Jonathan Kanter will also participate likely signals antitrust action by both regulators against the PE world, a longtime target of Progressive Democratic Senators led by Senator Elizabeth Warren (D-MA).

Below are all the significant public events we are looking at in the coming week:

Below are all the significant public events we are looking at in the coming week:

U.S. Congressional Hearings 

U.S. Senate

 

 

US Regulatory Meetings & Events

Interagency Meetings/Events

 

  • Wednesday & Thursday, March 6 & 7: Federal Reserve Board Chair Jay Powell delivers the Semiannual Monetary Policy Report to Congress before the House Financial Services Committee (Wednesday) and Senate Banking Committee (Thursday) - see above for each testimony video link.

Federal Reserve Board and Federal Reserve Banks

  

U.S. Treasury Department

  • No significant events are scheduled at this time.

  

Securities and Exchange Commission

 

Commodities Futures Trading Commission

 

  • Wednesday, March 6, 10:00 a.m. – The CFTC Global Markets Advisory Committee will meet.  They will discuss increased liquidity in U.S. Treasury markets and the upcoming transition to T+1 securities settlement. Additionally, Financial Stability Board Secretary General John Schindler will address the Committee to discuss Basel III.

 

  

FINRA

  • No significant events are scheduled at this time.

  

Federal Deposit Insurance Corporation

  

Office of the Comptroller of the Currency

  

The Consumer Financial Protection Bureau

  • Friday, March 8, 1:00 p.m. – The CFTC’s Spring 2024 Credit Union Advisory Council meets virtually. 

 

National Credit Union Administration

·       No significant events are scheduled at this time.

 

Federal Trade Commission & Department of Justice Antitrust Division

 

  • Wednesday, March 6, 9:00 a.m. – 5:00 p.m. – The FTC hosts its 8th Annual PrivacyCon 2024.  The conference brings together a diverse group of stakeholders, including researchers, academics, industry representatives, consumer advocates, and government regulators, to discuss the latest research and trends related to consumer privacy and data security. 

  

Farm Credit Administration

  • No significant events are scheduled at this time.

 

Farm Credit System Insurance Corporation

  • No significant events are scheduled at this time.

 

Import/Export Bank

  • No significant events are scheduled at this time.

     

World Bank

  • No significant events are scheduled at this time.

 

 

Trade Associations & Think Tank Events

 

Trade Association Events/Public Events

 

 

Think Tank Events

 

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

Read More
Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

February 26 - March 1, 2024

This coming week, Securities and Exchange Commission Chair Gary Gensler may unveil is long-awaited and highly controversial proposed disclosure requirements for greenhouse gas emissions by corporations.  The draft has been circulated to the other SEC Commissioners.  It was reported this past week some of the more ambitious elements of the proposal have been pulled but industry is still bracing for a tough set of proposals, which is likely to face an immediate federal court challenge.   Among the reported changes, Gensler has dropped a requirement for U.S.-listed companies to disclose Scope 3 emissions which are emissions emitted by a company’s supply chain and the consumption of its products by customers.

Also this week, the New York Fed, in collaboration with the Bank of International Settlements (BIS) and the Federal Reserve Board, are hosting a two-day conference on counterparty risk.  The event will be yet another effort by Federal Reserve Board Vice Chair Michael Barr to defend the Fed’s new bank capital rule.  Banking supervisors from Europe as well as a number of senior industry executives are going to participate.

Looking back at last week, it was a fairly quiet week as it was shortened in Washington by the President’s Day holiday.  But one major event of note was the Financial Stability Oversight Board (FSOC) meeting on Friday.  The readout from the meeting showed FSOC members were briefed on and had considerable discussions about the commercial real estate market and bank exposure.  Clearly, this is growing concern for regulators.

Additionally, SEC Chair Gary Gensler briefed the Council Chair on the SEC’s regulatory initiatives, including on the securities settlement cycle, central clearing and dealer registration, short-term funding markets, and private fund reporting.  

Below are all the significant public events we are looking at in the coming week:

U.S. Congressional Hearings 

U.S. Senate

  • There are no significant hearings or events scheduled at this time.

 

House of Representatives

  • There are no significant hearings or events scheduled at this time.

 

 

US Regulatory Meetings & Events

Federal Reserve Board and Federal Reserve Banks

  • February 27 -28 – The Federal Reserve Bank of New York, in collaboration with the Board of Governors of the Federal Reserve System and the Basel Committee on Banking Supervision at the Bank for International Settlement, will host a conference on counterparty credit risk management at the New York Fed.

  • February 27, 9:05 a.m. – Federal Reserve Vice Chair for Supervision Michael Barr gives a virtual speech on “Counterparty Credit Risk” at the Conference on Counterparty Risk Management.

  • March 1, 10:15 a.m. – Federal Reserve Board Governor Christopher Waller responds to a paper entitled “Quantitative Tightening Around the Globe: What Have We Learned?” at the 2024 U.S. Monetary Policy Forum in New York.

  • ·March 1, 3:30 p.m. PST - Federal Reserve Board Governor Adriana D. Kugler gives a speech entitled “Pursuing the Dual Mandate”  at the 2024 Stanford Institute for Economic Policy Research Economic Summit, Stanford, California.

 

U.S. Treasury Department

  • February 27 – March 2 – Treasury Secretary Janet Yellen will travel to São Paulo, Brazil, to participate in the G20 Finance Ministers and Central Bank Governors meetings and events on the sidelines and then will continue to Santiago, Chile, for bilateral engagements.  

 

Securities and Exchange Commission

  • February 27, 10:00 a.m. – The SEC hosts the Small Business Capital Formation Advisory Committee meeting.  The agenda can be found HERE.

  • February 29, 10:00 a.m. – The SEC holds a Closed Meeting.

  • March 1, 11:00 a.m. – The SEC holds its 2024 Investor Advocacy Clinic Summit in Washington, D.C. The agenda can be found HERE.

  

Commodities Futures Trading Commission

  • February 28, 11:30 a.m. – The CFTC holds a closed meeting.

  • February 29, 1:00 p.m. – CFTC Commissioner Kristin N. Johnson will participate in a fireside chat at FINRA’s DC office as a part of their Black History Month programming.

 

FINRA

  • February 29, 1:00 p.m. – FINRA hosts CFTC Commissioner Kristin N. Johnson will participate in a fireside chat at FINRA’s DC office as a part of their Black History Month programming.

 

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.

 

Farm Credit System Insurance Corporation

  • There are no significant events scheduled at this time.

 

Export/Import Bank

  • February 28, 3:00 p.m. – The ExIm Bank holds a virtual meeting to discuss EXIM policies and programs to provide competitive financing to expand United States exports and comments for inclusion in EXIM's Report to the U.S. Congress on Global Export Credit Competition.

 

World Bank/IMF

  • There are no significant events scheduled at this time.

 

 

Trade Associations & Think Tank Events 

Trade Association Events/Public Events

 

Think Tank Events

  • February 27, 8:00 a.m. – The Economic Club of Washington, D.C., holds a discussion with Marc Rowan, co-founder and CEO of Apollo Global Management Inc.

  • February 27, 1:00 p.m. – The Brookings Institution holds an event entitled “Meeting climate goals through tax reform.”  Senate Budget Committee Chairman Sheldon Whitehouse (D-R.I.) and Richard Rubin of the Wall Street Journal will have a fireside chat among other speakers.

  • February 27, 1:00 p.m. – The Brookings Institute holds a workshop entitled “Financial Markets Data and Research from the Commodity Futures Trading Commission.”   A number of senior CFTC economists will participate.

  • February 27, 1:00 p.m. – The Peterson Institute for International Economics holds a webcast entitled “World Bank Global Economic Prospects Report: The magic of investment accelerations.”  M. Ayhan Kose, deputy chief economist and director of the Prospects Group at the World Bank, and Kersten Stamm, an economist in the Prospects Group of the World Bank's Development Economics, will speak.

  • February 29, 1:00 p.m. – The Peterson Institute for International Economics holds a webcast entitled “Globalization, the US Economy, and Political Backlash.”  Lazard CEO Peter Orszag will speak.

 

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

Read More
Francis Kelly Francis Kelly

The U.S. Financial Regulatory Week Ahead

February 12 - 16, 2024

The big regulatory events this coming week will be dueling speeches between a Federal Reserve Board governor and the Acting Comptroller of the Currency and then, a few days later, a big speech by the Federal Reserve Board Vice Chair for Supervision. 

First, on Tuesday, Federal Reserve Board Governor Michelle Bowman and, later in the day, Acting Comptroller of Currency Michael Hsu will speak at the  American Bankers Association Conference for Community Bankers in San Antonio, Texas.  We expect further sparring over the Fed’s large bank capital requirement proposal from Bowman and Hsu. 

On Thursday, Federal Reserve Vice Chair Michael Barr will speak at the National Association of Business Economics in Washington, D.C., on “monetary policy and regulation.”   Again, we expect a vigorous defense of the bank capital increase in the face of growing opposition from Congress, big banks, and major business lobbies.

Also of importance this week, the House Financial Services Committee is also holding an oversight hearing of FinCEN.  FinCEN Director Andrea Gacki will be testifying along with Treasury Undersecretary for Terrorism and Financial Intelligence Brian Nelson. 

Finally, we will be listening closely to SEC Chair Gary Gensler’s duel events at Yale this week – one at the Yale School of Law and then later in the day at the Yale School of Management – where Artificial Intelligence (AI) and the financial markets will be a significant topic.

Below is a listing of all the issues and events U.S. regulators are engaged in this week, along with relevant think tank and trade association events.   Please let us know if you have any questions.

 

U.S. Congressional Hearings 

U.S. Senate

  • The Senate is out of session this coming week and the following week.

 

House of Representatives

  • February 14, 10:00 a.m. – The House Financial Services Committee holds a hearing entitled “ Oversight of the Financial Crimes Enforcement Network (Fin CEN) and the Office of Terrorism and Financial Intelligence (TFI).  Witnesses testifying include:

    • The Honorable Brian E. Nelson, Undersecretary for Terrorism and Financial Intelligence (TFI), U.S. Department of the Treasury

    • Ms. Andrea Gacki, Director, Financial Crimes Enforcement Network (FinCEN)

 

  • February 15, 10:00 a.m. – The House Financial Services Committee’s Subcommittee on Financial Institutions and Monetary Policy holds a hearing entitled “Lender of Last Resort” Issues with the Fed Discount Window and Emergency Lending”

  • February 15, 2:00 p.m. – The House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Inclusion holds a hearing entitled “Crypto Crime in Context Part II: Examining Approaches to Combat Illicit Activity.”

 

 

US Regulatory Meetings & Events

 

Federal Reserve Board and Federal Reserve Banks

  • February 13, 9:20 a.m. - Federal Reserve Board Governor Michelle Bowman gives a speech entitled “Defining a Bank” at the American Bankers Association Conference for Community Bankers in San Antonio, Texas.

  • February 14, 4:00 p.m. – Federal Reserve Vice Chair for Supervision Michael S. Barr gives a speech entitled “Monetary Policy and Bank Regulation” at the 40th Annual National Association for Business Economics (NABE) Economic Policy Conference, Washington, D.C.

  • February 25, 1:15 p.m. – Federal Reserve Governor Christopher J. Waller entitled “The Dollar’s International Role” at the Global Interdependence Center and University of the Bahamas Conference: Climate, Currency, and Central Banking, Nassau, Bahamas

 

U.S. Treasury Department

  • There are no significant events scheduled at this time.

 

Securities and Exchange Commission

 

Commodities Futures Trading Commission

  • February 13, 9:00 a.m. – The CFTC’s Energy and Environmental Markets Advisory Committee will meet at the Colorado School of Mines in Golden, Colorado.  At this meeting, the EEMAC will explore the role of rare earth minerals in transitional energy and electrification, including the potential development of derivatives products to offer price discovery and hedging opportunities in these markets. Additionally, a presentation and discussion on the federal prudential financial regulators proposed rules implementing Basel III and the implications for and impact on the derivatives market. Finally, the two EEMAC subcommittees will offer an update on their continued work related to traditional energy infrastructure and metals markets.

 

  • February 15, 12:30 p.m. – The CFTC will hold an Open Meeting.  They will consider the following:

    • Proposed Rule: Requirements for Designated Contract Markets and Swap Execution Facilities Regarding Governance and the Mitigation of Conflicts of Interest Impacting Market Regulation Functions

    • Proposed Rule: Foreign Boards of Trade

    • Proposed Rule: Regulations to Address Margin Adequacy and to Account for the Treatment of Separate Accounts by Futures Commission Merchants

    • Application of Taiwan Futures Exchange Corporation for an Exemption from Registration as a DCO

    • ICE NGX Petition for Amended DCO Registration Order 

 

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

  • February 15, 10:00 a.m. – The NCUA Board meets at their headquarters in Alexandria, Virginia.  They are expected to discuss 1) the Board Briefing, 2) the Share Insurance Fund Quarterly Report, and 3) the Final Interpretive Ruling and Policy Statement of the Minority Depository Institution Preservation Program.

 

Federal Trade Commission & Department of Justice Antitrust Division

  • February 13, 10:00 a.m. – The FTC holds an Informal Hearing on the Proposed Trade Regulation Rule on the Use of Consumer Reviews and Testimonials.

 

Farm Credit Administration

  • There are no significant events scheduled at this time.

 

Farm Credit System Insurance Corporation

  • There are no significant events scheduled at this time.

 

World Bank

  • There are no significant events scheduled at this time.

 

 

Trade Associations & Think Tank Events

 

Trade Association Events

 

Think Tank Events

 

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

Read More
Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

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

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

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

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

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

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

Below is a listing of all the issues and events U.S. regulators are engaged in this week, along with relevant think tank and trade association events. Please let us know if you have any questions.

U.S. Congressional Hearings 

U.S. Senate

 

House of Representatives

  • The House is out of session this week.

 

US Regulatory Meetings & Events

Federal Reserve Board and Federal Reserve Banks

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

 

U.S. Treasury Department

  • There are no announced scheduled events of note.

 

Securities and Exchange Commission

 

Commodities Futures Trading Commission

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

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

     

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

 

Federal Deposit Insurance Corporation

  • There are no announced scheduled events of note.

 

Office of the Comptroller of the Currency

  • There are no announced scheduled events of note.

 

The Consumer Financial Protection Bureau

  • There are no announced scheduled events of note.

 

National Credit Union Administration

  • There are no announced scheduled events of note.

 

Federal Trade Commission & Department of Justice Antitrust Division

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

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

 

Farm Credit Administration

  • There are no announced scheduled events of note.

 

Trade Associations & Think Tank Events

Trade Association Events

Think Tank Events

  

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

Read More
Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

January 15 - 19, 2024

It may be a federal holiday on Monday, but the remaining four days of the week will be busy and quite interesting for the Washington regulatory world.  

First, we would highlight the battle outside and inside the Federal Reserve on the proposed bank capital rule, which intensifies this week as Federal Reserve Board Governor Michelle Bowman participates in a U.S. Chamber of Commerce-sponsored conference critical of the proposal.   Bowman has intensified her criticism of the 1,087-page plan quarterbacked by Fed Vice Chairman for Supervision Michael Barr.  Barr has been barnstorming the speaking circuit lately, defending the plan, the most recent being a talk he gave in Washington last week (which, interestingly and oddly, was never added to the official Federal Reserve Board calendar of speaking events). 

At that event, Barr seemed to relent a bit on the outcome of the proposal, saying the Fed is taking the comment period very seriously and that “it will help us, I think, shape a better rule – make sure we get the calibration right for mortgage products, for credit card products, for consumer products.”

The Fed (and Barr) will co-host a conference this week with MIT (at MIT) on cybersecurity and banking, which should prove informative of where the Fed plans to go on tightening bank cyber requirements.

Also, this coming week, SEC Chair Gary Gensler will do a fireside chat at the left-of-center consumer rights organization Public Citizen on the future of AI in finance and how it might be regulated.

Meanwhile, the SEC’s proposed climate disclosure rules come under the microscope at a House Financial Services Subcommittee hearing.  House Republicans have made pushing back on ESG in general in finance – and the regulations regulators are contemplating around it – a top priority in 2024.

Below is a listing of all the issues and events U.S. regulators are engaged in this week, along with relevant think tank and trade association events.   Please let us know if you have any questions.

U.S. Congressional Hearings 

U.S. Senate

 

House of Representatives

  

U.S Regulatory Meetings & Events

Federal Reserve Board and Federal Reserve Banks

 

U.S. Treasury Department

  • No significant events are scheduled at this time.

 

Securities and Exchange Commission

 

Commodities Futures Trading Commission

  • 9:30 a.m. EST/2:30 p.m. GMT+1 – CFTC Commissioner Caroline D. Pham will participate in a fireside chat on U.S. innovation and regulation at GBBC’s 7th Annual Blockchain Central Davos in Davos, Switzerland.

  • 10:30 a.m. EST/4:30 GMT+1 – CFTC Commissioner Caroline D. Pham will be recognized at “Women Who Lead” and participate in a panel discussion, “Crypto at a Crossroads: Future-proofing Digital Assets” at Bloomberg House Davos, in Davos, Switzerland.

 

Federal Deposit Insurance Corporation

  • No significant events are scheduled at this time.

 

Office of the Comptroller of the Currency

  • January 18, 9:30 a.m. – Acting Comptroller of the Currency Michael Hsu will offer remarks on bank liquidity at Columbia Law School in New York City. A question-and-answer session will follow his remarks.

 

The Consumer Financial Protection Bureau

  • No significant events are scheduled at this time.

 

National Credit Union Administration

 

Federal Trade Commission & Department of Justice Antitrust Division

  • No significant events are scheduled at this time.

 

Farm Credit Administration

  • No significant events are scheduled at this time.

 

 

 

Trade Associations & Think Tank Events

Trade Association Events

  • January 17, 8:00 a.m. – The U.S. Chamber of Commerce Center for Capital Markets holds a discussion on "Protect Main Street Lending," focusing on Basel III regulations that would increase the amount of capital that large banks must hold. Representative Andy Barr (R-KY-6), Chairman of the Subcommittee on Financial Institutions and Monetary Policy, and Representative Bill Foster (D-IL-11), Ranking Member of the Subcommittee on Financial Institutions and Monetary Policy, will both speak in the morning.  In the afternoon, Federal Reserve Board Governor Michelle Bowman will participate in a fireside chat on the subject.

 

  • January 17, 12:00 p.m. – Federal Housing Finance Agency Director Sandra Thompson will speak at the Exchequer Club in Washington, D.C.

 

Think Tanks/Academic Events

 

 

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

Read More
Francis Kelly Francis Kelly

The U.S. Financial Regulatory Week Ahead

December 18 - 22, 2023

It is the week before Christmas, and Washington, for the most part, has gone quiet. Congress is scheduled to be out of session (although that is in flux – the Senate is likely to return Monday to vote on a Ukraine/Israel/Border Security bill, but the House of Representatives is gone until January 9). 

The regulators are quiet this coming week. No open meetings, speeches, or other significant events are scheduled for next week. The one event of note next week is over at the Institute for International Finance (IIF), where they will host Bank of England Deputy Governor for Financial Stability Sarah Breeden for a “Talking Policy” series.

This past week, the Financial Stability Oversight Council (FSOC) released its annual report. You can find it HERE.  The report drilled into several significant issues, including:

  • The Banking Sector: FSCOC says “lessons can be learned” from the SVB and other bank collapses earlier this year, but overall, the system is solid (which begs the question: why do you need a new capital increase for the largest banks?)

  • Cybersecurity: The report argues that cyber risk is pervasive throughout the economy, and more must be done in all sectors, not just financial.

  • Artificial Intelligence (AI): FSOC sees AI as a vulnerability to the overall financial system and urges financial institutions to work hard and fast to ramp up their expertise on the issue. 

  • Nonbank Financial Intermediation: Citing the “evolving participation of nonbank financial institutions” in the financial system, FSOC pays particular attention to nonbank mortgage servicers and the rise in private credit as a potential risk to focus on.

  • Climate Risk: The report discusses how severe and frequent climate-related events create new risks and significant costs for the public and the economy. FSOC urges state and local governments to improve their dialogue with federal regulators while encouraging regulators to promote better disclosures for investors to understand the risk.

  • Digital Assets: FSOC notes “that financial stability vulnerabilities may arise from crypto-asset price volatility, the market’s high use of leverage, the level of interconnectedness within the industry, operational risks, and the risk of runs on crypto-asset platforms and Stablecoins.” The report urges Congress to pass legislation allowing regulators to regulate the sector better.

We will likely take the week of December 25 off, but we will update you if anything changes or any special events/meetings pop up. Below is the (very slim) list of events in the coming week. Please let us know if you have any questions. We hope you have a restful and blessed Christmas!  

 

U.S. Congressional Hearings 

U.S. Senate

  • The Senate is out of session for the Christmas and New Year holidays.  They return to work on January 8.

 

House of Representatives

  • The House is out of session for the Christmas and New Year holidays.  They return to work on January 9.

 

US Regulatory Meetings & Events

Federal Reserve Board and Federal Reserve Banks

  • no meetings or speeches of note are scheduled for the coming week.

 

U.S. Treasury Department

  • No meetings or speeches of note are scheduled for the coming week.

 

Securities and Exchange Commission

  • December 21, 2:00 p.m. – The SEC holds a closed meeting.

 

Commodities Futures Trading Commission

  • No meetings or speeches of note are scheduled for the coming week.

 

Federal Deposit Insurance Corporation

  • No meetings or speeches of note are scheduled for the coming week.

Office of the Comptroller of the Currency

  • No meetings or speeches of note are scheduled for the coming week.

 

The Consumer Financial Protection Bureau

  • No meetings or speeches of note are scheduled for the coming week.

National Credit Union Administration

  • No meetings or speeches of note are scheduled for the coming week.

 

Federal Trade Commission & Department of Justice Antitrust Division

  • No meetings or speeches of note are scheduled for the coming week.

Farm Credit Administration

  • No meetings or speeches of note are scheduled for the coming week.

Trade Associations & Think Tank Events

Trade Associations

  • There are no events of note scheduled for the coming week.

  

Think Tanks

  

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

 Merry Christmas!

Read More
Francis Kelly Francis Kelly

U.S. Regulatory Week Ahead

December 4 - 8, 2023

The holidays are just around the corner, and Washington regulators are working hard this week to make their cases on various policy issues before year's end.  SEC Chair Gary Gensler will give two high-profile speeches, first at the American Bar Association’s Federal Regulation of Securities Winter Meeting and then at the Council on Foreign Relations in Washington.  SEC Commissioner Hester Pierce will also be speaking at the ABA meeting.

Meanwhile, the CFTC is fanning out globally this week with CFTC Chair Rostin Benham and CFTC Commissioners Christy Goldsmith Romero attending and speaking at COP28 in Abu Dhabi.  At the same time, Commissioner Kristin N. Johnson delivers a keynote address at the Financial Times Crypto and Digital Assets Summit in London.

But this week's big regulatory-related media event will be in the U.S. Senate Banking Committee as the CEOs of the eight biggest banks in America will testify at the annual "Oversight of Wall Street Firms" hearing. 

At this point, we do not see any particular "hot-button" issues the CEOs will likely be hammered by Senators over.  In fact, this hearing is likely to give the CEOs a major public platform to push back on the Federal Reserve's recently proposed new capital rules (which most of these CEOs have been publicly pillaring for weeks, most recently from Goldman Sachs CEO David Solomon who argued it would "impact everything from flight prices to pensioners retirement savings.”)

Below is a listing of issues and events U.S. regulators are engaged in this week, along with relevant think tank and trade association events.   Please let us know if you have any questions.

 

U.S. Congressional Hearings 

U.S. Senate

  • December 5, 9:30 a.m. – The Senate Banking Committee is holding its “Annual Oversight of Wall Street Firms” hearing.  Testifying will be Charles W. Scharf, CEO and President of Wells Fargo & Company; Brian Thomas Moynihan, Chairman and CEO of Bank of America; Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co.; Jane Fraser, CEO of Citigroup; Ronald O’Hanley, CEO of State Street; Robin Vince, CEO of BNY Mellon; David Solomon, CEO of Goldman Sachs; and James P. Gorman, CEO of Morgan Stanley.

 

House of Representatives

 

US Regulatory Meetings & Events

Federal Reserve Board and Federal Reserve Banks

  • December 5, 10:00 a.m. – Federal Reserve Board Director for the Division of Supervision and Regulation Michael Gibson will testify before the House Financial Services Subcommittee on Digital Assets on “Fostering Financial Innovation” (see above).

 

U.S. Treasury Department

  • No significant events are scheduled at this time.

 

Securities and Exchange Commission

  • December 4, 10:15 a.m. – SEC Chair Gary Gensler will speak at the Council on Foreign Relations in Washington, D.C.

  

Commodities Futures Trading Commission

  • December 4, 2:00 p.m. (UAE Time) – CFTC Commissioner Christy Goldsmith Romero will participate on a UN Sustainable Stock Exchanges Initiative panel regarding Exchanges and Climate Innovation at COP28 UAE with IOSCO Secretary General Martin Moloney, ESMA Chair Verena Ross, and others in Dubai.

  • December 5, 12:20 p.m. (UAE Time) – CFTC Commissioner Christy Goldsmith Romero will participate in a fireside chat at the Sustainable Innovation Forum 2023 on Building Climate Resilient Markets and Supply Chains Through Derivatives during COP28 in Dubai.

  • December 5, 12:35 p.m. (London Time) – CFTC Commissioner Kristin N. Johnson will deliver a keynote address and participate in a fireside chat at the Financial Times Crypto and Digital Assets Summit: Winder Edition in London, England.

  • December 7, 9:40 a.m. (UAE Time) – Chairman Rostin Behnam will participate in a conversation at the Milken Institute Middle East and Africa Summit in Abu Dhabi.

  • December 8, 8:15 a.m. (MST) – CFTC Commissioner Summer K. Mersinger will participate in the Energy Council, Global Energy and Environmental Matters Conference in Jackson, Wyoming.

 

Federal Deposit Insurance Corporation

  • December 5, 9:00 a.m. – The Federal Deposit Insurance Corporation holds a meeting of the FDIC Systemic Resolution Advisory Committee to discuss a range of issues and developments related to the resolution of systemically important financial companies.

  

Office of the Comptroller of the Currency

  • December 5, 3:00 p.m. – Acting Comptroller Michael Hsu will give a virtual speech on financial inclusion at the Aspen Institute Financial Security Program.

 

The Consumer Financial Protection Bureau

  • No significant events are scheduled at this time.

  

National Credit Union Administration

  • No significant events are scheduled at this time.

 

Federal Trade Commission & Department of Justice Antitrust Division

  • No significant events are scheduled at this time.

 

Farm Credit Administration

  • No significant events are scheduled at this time. 

 

Trade Associations & Think Tank Events

 

Trade Associations

 

Think Tanks

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

Read More
Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

November 27 - December 1, 2023

Washington returns to work this week after a long (and hopefully relaxing) Thanksgiving holiday.  We are watching three major events – two of which come in sets – this week. 

The first is in Frankfurt, Germany, at the Fifth ECB Forum on Banking Supervision 2023, a virtual “who’s who” of global financial regulators, bank CEOs,  and leading financial member of the media.  Fed Vice Chair Michael Barr will be among several major regulators speaking on various regulatory issues.  Expect a spirited defense of new bank capital rules and the need for tighter global coordination on bank regulation.

The second significant event of the week we are watching is two speeches by Vice Chair Barr  is giving in the US addressing the Fed’s recently proposed changes to the Community Reinvestment Act.  As we see it, these speeches are a continuation of a virtual barn-storming tour Barr is taking to defend the new measures as banks consider taking legal action to push back on the proposal.

The third set of events we are watching this week is the testimony of Consumer Financial Protection Bureau Director Rohit Chopra before the House Financial Services Committee on Tuesday and then the Senate Banking Committee on Wednesday.   We expect fireworks at both of these hearings.

Chopra has been pushing several regulatory agenda items that are, quite frankly, anathema to the financial services sector, which has, in turn, mounted a growing lobbying effort in Congress to step in and block the CFPB’s actions.   Chopra has a somewhat cantankerous relationship with House and Senate Republicans.  We can expect him to get a lot of questions about his effort and what knowledge – if any – of the unfolding sexual misconduct scandal at the FDIC, where Chopra sits on the board.  Recall that Chopra was instrumental in helping FDIC Chair Marty Gruenberg regain the chair and has been a solid ally to Gruenberg.

Below is the full regulatory calendar for the coming week.  Please let us know if you have any questions.

U.S. Congressional Hearings 

House of Representatives

 

U.S. Senate

US Regulatory Meetings & Events

Global Events

 

Federal Reserve Board and Federal Reserve Banks

  • November 28, 10:05 a.m. – Federal Reserve Board Governor Christopher Waller will give an Economic Outlook at the American Enterprise Institute in Washington, D.C.

 

 

 

 

 

 

U.S. Treasury Department

November 28, 9:00 a.m. – U.S. Treasury Undersecretary for Terrorism and Financial Intelligence Brian Nelson will give a keynote address at the American Bankers Association Financial Crimes Enforcement Conference in Washington, D.C.

 

Securities and Exchange Commission

 

  • November 30, 2:15 p.m. – The SEC will hold a closed meeting.

 

Commodities Futures Trading Commission

  • November 29, 10:30 a.m. Abu Dhabi time – CFTC Commissioner Caroline Pham will participate in the Global Financial Regulators Summit and speak on a panel entitled “How The Transition Era Will Affect the Global Banking System” at the Abu Dhabi Finance Week.

 

  • November 29, 6:00 p.m. Dallas time – CFTC Commissioner Kristin Johnson will deliver a keynote address at the Federal Reserve Bank of Dallas.

 

Federal Deposit Insurance Corporation

  • No significant events are scheduled.

 

Office of the Comptroller of the Currency

  • No significant events are scheduled.

 

The Consumer Financial Protection Bureau

  • No significant events are scheduled.

 

National Credit Union Administration

  • No significant events are scheduled.

 

Federal Trade Commission & Department of Justice Antitrust Division

  • November 29 (no times listed for security reasons) – FTC Chair Lina Kahn will participate in a moderated conversation with Andrew Ross Sorkin at the 2023 New York Times DealBook Summit at Lincoln Center in New York.

 

Farm Credit Administration

  • No significant policy events are scheduled.

 

 

Trade Associations & Think Tank Events

Trade Associations

 

 

 

Think Tanks

  •  Nothing significant to report.

 

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

Read More
Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

November 20 - 24, 2023

Washington has gone quiet this week in advance of the Thanksgiving holiday.  There are no major regulatory speeches, meetings, or other events of note this week.   

But enjoy the calm and peace this week because when greater Washington comes back to work next week, expect a growing bipartisan chorus of members of Congress calling for FDIC Chair Marty Gruenberg to step down following revelations by the Wall Street Journal he may have tolerated long-term toxic work conditions at the agency.   We expect Gruenberg to fight back hard against the allegations.

 Gruenberg was first nominated to serve on the FDIC Board in 2005.  He then was nominated to become chair in 2011 by President Obama and then, in an unusual move, stayed on the Board after Obama’s term in office ended.  Gruenberg then helped spearhead an ugly and partisan effort to push out his successor so he could again regain the chair – an event which soured many members of Congress on him.  Coupled with this is lingering criticism of the FDIC’s role in the oversight of Silicon Valley Bank (SVB) and other banks that collapsed earlier this year. In short, Washington has a long memory, and the political knives are now back out, and they are coming for Gruenberg.  

The implications of Gruenberg stepping down would be significant: A Republican (Travis Hill) serves as Vice Chair of the FDIC and would step in as Acting Chair until a new Chair is nominated and confirmed – something that probably would not happen in 2024 in advance of the elections. Gruenberg’s departure would also leave the FDIC Board politically split between two Republicans and two Democrats, likely freezing multiple regulatory efforts Gruenberg, the Biden Administration, and leading Congressional Democrats like Senator Elizabeth Warren (D-MA) have been pushing on capital requirements, raising the deposit insurance fees, CRA, and other contentious issues.

Below is the (very sparse) regulatory calendar for the coming week.  Please let us know if you have any questions.  And we hope you have a wonderful and restful Thanksgiving!

U.S. Congressional Hearings 

House of Representatives

  • Congress is out of session this week for the Thanksgiving holiday.

U.S. Senate

  • Congress is out of session this week for the Thanksgiving holiday.

 

US Regulatory Meetings & Events

Federal Reserve Board

  • The Federal Open Market Committee minutes are released on Tuesday.  But beyond this, no significant speeches, policy events, or meetings are scheduled.

 

U.S. Treasury Department

  • No significant events are scheduled.

 

Securities and Exchange Commission

  • No significant events are scheduled.

 

Commodities Futures Trading Commission

  • No significant events are scheduled.

 

Federal Deposit Insurance Corporation

  • No significant events are scheduled.

 

Office of the Comptroller of the Currency

  • No significant events are scheduled.

 

The Consumer Financial Protection Bureau

No significant events are scheduled.

 

National Credit Union Administration

  • No significant events are scheduled.

 

Federal Trade Commission & Department of Justice Antitrust Division

  • No significant events are scheduled.

 

Farm Credit Administration

  • ·The FCA announced last week that the deadline for submitting input on the Farm Credit System Insurance Corporation's draft strategic plan has been extended from November 21 to November 28.

 

 

Trade Associations & Think Tank Events

 

Trade Associations

Think Tanks

 

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

Read More

Subscribe to our newsletter.

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