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. Regulatory Week Ahead
AT LAST, THE ELECTIONS ARE FINALLY HERE! And Not A Whole Lot Is Going On in the Regulatory World This Week…
November 3 - 8, 2024
The elections are finally here this week. Washington is bracing for what Tuesday brings, especially the regulatory world because change is coming to the regulatory agenda in 2025 and beyond.
The only major event this week is the Federal Reserve’s Federal Open Market Committee (FMOC), meets Wednesday and Thursday to discuss the economy and interest rates. And on Friday, Fed Governor Michelle W. Bowman participates in a conversation on banking topics at the University of Mississippi School of Business Banking and Finance Symposium. The Securities Enforcement Forum is being held on Wednesday, bringing together current and former senior SEC officials – mostly enforcement staff – with white-collar attorneys, in-house counsels, and compliance executives. And that is about it for the regulatory calendar this coming week.
This past week saw a ramping up in the fight over the Federal Deposit Insurance Corporation’s (FDIC) efforts to tighten its oversight of how giant asset managers invest in banks. House Republicans let it be known they are not happy with the FDIC’s effort, sending a letter to FDIC Chair Marty Gruenberg objecting. The FDIC is requiring BlackRock and Vanguard to sign agreements this week meant to more aggressively monitor the asset managers’ promises to remain passive investors in banks in which they have big ownership stakes.
Also, this past week, Treasury Secretary Janet Yellen said at the American Bank Association’s annual meeting that Treasury believes fraud in the banking system is becoming a huge problem and that her department is now using artificial intelligence to detect and deal with the issue.
Also, anticipating the changes coming to Congress' composition and what they might mean for the regulatory world, Senator Tim Scott (R.-S.C.), the current ranking minority of the Senate Banking Committee, appears to have locked up enough support to become the next Chair of the Senate Banking Committee if control of the chamber flips.
Let’s see what happens on Tuesday. And don’t forget to vote! 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 Pro Forma session and 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
· Wednesday & Thursday, November 6 & 7 – The Federal Reserve Board’s Federal Open Market Committee meets in Washington to consider interest rates.
· Friday, November 8, 11:00 a.m. – Federal Reserve Board Governor Michelle W. Bowman participates in a conversation on banking topics at the University of Mississippi School of Business Banking and Finance Symposium, Oxford, Mississippi.
U.S. Treasury Department
· There are no significant events scheduled at this time.
Department of Commerce
· Friday, November 8, 9:30 a.m. – The Commerce Department’s Bureau of Economic Analysis holds a virtual meeting of the Bureau of Economic Analysis Advisory Committee to discuss proposed improvements, extensions, and research related to BEA's economic accounts and include an update on recent statistical developments.
Department of Housing and Urban Development
· There are no significant events scheduled at this time.
Securities and Exchange Commission
· Wednesday, November 6 – Acting Director of Enforcement Sanjay Wadhwa and several other SEC enforcement officials will participate in Securities Enforcement Forum D.C. 2024.
· Thursday, November 7 – The SEC holds its Virtual National Compliance Outreach Seminar for Investment Companies and Investment Advisors. You can find the agenda HERE.
· Thursday, November 7, 2:00 p.m. – The SEC holds a Closed Meeting.
Commodities Futures Trading Commission
· Friday, November 8, 6:00 p.m. PT – CFTC Commissioner Christy Goldsmith Romero will receive the Daniel K. Inouye Trailblazer Award from the National Asian Pacific American Bar Association (NAPABA). The award is NAPABA’s lifetime achievement award and highest honor and recognizes the Trailblazer’s leadership, vision, courage, tenacity, and substantial contributions to the legal profession.
Federal Deposit Insurance Corporation
· Thursday, November 7, 9:00 a.m. – The Federal Deposit Insurance Corporation holds a meeting of the Advisory Committee on Community Banking chaired by FDIC Chair Martin Gruenberg to discuss issues that are of interest to community banks. You can find the agenda HERE.
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.
FINRA
· 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 Insurance Corporation
· 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
· Wednesday & Thursday, November 6 & 7 – SIFMA holds its annual Market Structure Conference in New York.
· Thursday, November 7, 10:00 a.m. – The Futures Industry Association holds a virtual conference entitled Commodities Enforcement Trends and Developments.
· Friday, November 8, 10:00 a.m. – The Institute for International Finance holds a Cyber Security Roundtable entitled “Resilience in the Face of Digital Fraud and Cyber Threats” in Brussels, Belgium.
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.
The U.S. Financial Regulatory Week Ahead
It’s World Bank/IMF Week in Washington, There Are Not One But Two Big Fintech Conferences This Week, And Pressure on FDIC Chair Gruenberg To Explain Himself Grows
October 21 - 25, 2024
Washington will be a very busy place this week as finance ministers and central bank chiefs from around the world converge for the annual World Bank/IMF meetings. While burgeoning global debt will be a major focus of the meetings, issues surrounding the stability of the financial markets will be a central theme (We would note it will also be a significant theme of the BRICS Leaders’ Summit in Russia this week, as Russian President Vladimir Putin and other BRICS leaders seek to build an alternative financial system).
Also, this week, not one but two big Fintech Conferences will be held, one in Washington and one in Philadelphia. The one in Washington – the Georgetown University Law Center's Institute of International Economic Law holds its eighth annual Fintech Week Conference – will see speeches by a number of regulators, including Acting Comptroller of the Currency Michael Hsu, CFTC Chairman Rostin Behnam, and CFPB Director Rohit Chopra.
Also this week, Bloomberg is holding its Global Regulatory Forum in New York, where SEC Chair Gary Gensler will speak. He will also speak at SIFMA’s Annual Meeting in New York.
Quickly looking at what happened last week, we would note that while Congress remains out of session until after the November elections, there still was some notable action. House Financial Services Chair Patrick McHenry on Wednesday slammed FDIC Chair Martin Gruenberg for “continued obstruction” of the panel’s investigation into the agency's workplace culture, calling on the bank regulator to schedule a transcribed interview by the end of the day. Gruenberg continues to refuse to cooperate or explain himself.
McHenry – who is retiring from Congress at the end of this session – also sent a letter to the General Accountability Office (GAO) asking for an investigation into the Treasury Department's management of small business ownership data, which it collects under a law intended to fight money laundering.
Also of note, Treasury Secretary Janet Yellen said she believes a bipartisan stablecoin bill currently being negotiated in the House “comes close” to the administration’s goals for regulating digital assets. While we believe there is virtually no chance of the bill being passed by the end of this year, we believe it will be revived early in the new Congress next year.
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 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
· Tuesday & Wednesday, October 22 – 23 – The Federal Reserve Bank of Philadelphia will hold its 8th Annual Fintech Conference in Philadelphia. Among the speakers will be Federal Reserve Board Governor Michelle Bowman, Philadelphia Federal Reserve Bank President Patrick Harker, and a large number of industry leaders.
· Wednesday, October 23, 9:00 a.m. – Federal Reserve Board Governor Michelle W. Bowman gives opening remarks at the Eighth Annual Fintech Conference hosted by the Federal Reserve Bank of Philadelphia, Philadelphia, Pennsylvania.
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
· Monday, October 21, 10:25 a.m. – SEC Chair Gary Gensler will deliver remarks and participate in a one-on-one conversation with SIFMA President and CEO Kenneth Bentsen at the SIFMA Annual Meeting in New York.
· Tuesday, October 22, 11:00 a.m. – SEC Chair Gary Gensler will speak at the Bloomberg Global Regulatory Forum in New York. A livestream of his remarks will be available. See the conference agenda here.
· Thursday, October 24, 1:00 p.m. – The SEC will hold a Closed Meeting.
Commodities Futures Trading Commission
· Monday, October 21, 2:00 p.m. – CFTC Chairman Rostin Behnam will participate in a fireside chat at SIFMA’s Annual Meeting in New York.
· Tuesday, October 22, 2:05 p.m. – CFTC Chairman Rostin Behnam will give a keynote address at the Bloomberg Global Regulatory Forum in New York.
· Wednesday, October 23, 9:05 a.m. – CFTC Chairman Rostin Behnam will participate in a fireside chat with Congressman Ro Khanna at DC FinTech Week in Washington, D.C.
FINRA
· There are no significant events scheduled at this time.
Federal Deposit Insurance Corporation
· Tuesday, October 22 – Federal Deposit Insurance Corporation Vice Chair Travis Hill will speak at the DC Fintech Week Conference in Washington, D.C.
Office of the Comptroller of the Currency
· Tuesday, October 22, 9:00 a.m. – Acting Comptroller of the Currency Michael J. Hsu will discuss the future of banking with Hyun Song Shin, Economic Adviser and Head of Research at the Bank for International Settlements, during DC Fintech Week in Washington, D.C.
The Consumer Financial Protection Bureau
· Wednesday, October 23 -- Consumer Financial Protection Bureau Director Rohit Chopra delivers remarks at the DC Fintech Week Conference in Washington, D.C.
National Credit Union Administration
· Thursday, October 24, 10:00 a.m. – The NCUA holds a Board Meeting. The agenda will cover an update on cybersecurity and a briefing on New Charter and Field of Memberships.
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
· Friday, October 21 - 26 – The International Monetary Fund and the World Bank Group officially kick off their 2024 Fall Meeting.
North American Securities Administrators Association
· There are no significant events scheduled at this time.
Trade Associations & Think Tank Events
Trade Associations
· Monday, October 21 – SIFMA holds its annual meeting in New York.
· Monday – Friday, October 22 – 25 – The Institute for International Finance Annual Membership meeting takes place in Washington, D.C.
· Tuesday, October 22 – The Institute for International Bankers holds its annual 2024 Anti-Money Laundering Conference in New York.
· Thursday, October 24, 10:00 a.m. – The Bipartisan Policy Center holds a discussion on "Scaling Local Innovations for Achieving Housing Affordability."
Think Tanks and Other Events
· Monday, October 21, 9:00 a.m. – 4:30 p.m. – The Peterson Institute for International Economics holds a conference on "Geopolitics and International Trade and Finance: Knowns and Unknowns."
· Monday, October 21 - The Urban-Brookings Tax Policy Center holds a virtual forum, beginning at 1 p.m., on "Tax Policy, the 2024 Election, and a Look Ahead to 2025."
· Tuesday, October 22 – Day One of The Georgetown University Law Center's Institute of International Economic Law holds its eighth annual Fintech Week Conference begins. Among the speakers today will be Acting Comptroller of the Currency Michael Hsu, Representative French Hill, (R-Ark.), National Security Council Special Adviser for Cybersecurity and Critical Infrastructure Policy Carole House participates in a discussion on "The Geopolitics of Artificial Intelligence," and Federal Deposit Insurance Corporation Vice Chair Travis Hill.
· Tuesday, October 22, 4:00 p.m. – The Brookings Institution will hold an event entitled “Climate, development, and international financial institutions: Perspectives from the Global South.”
· Wednesday, October 23 – Day Two of The Georgetown University Law Center's Institute of International Economic Law Fintech Week Conference. Rep. Ro Khanna, (D-Calif.) and Commodity Futures Trading Commission Chairman Rostin Behnam deliver remarks. Also, New York Department of Financial Services Superintendent Adrienne Harris and Consumer Financial Protection Bureau Director Rohit Chopra delivers remarks.
· Wednesday, October 23 – The Association of Certified Sanctions Specialists holds its sixth annual conference on "Global Sanctions and Export Controls” in Washington, D.C. Among the speakers will be Matthew Axelrod, assistant secretary for export enforcement at the Commerce Department's Bureau of Industry and Security, Scott Anderson, national coordinator for the Commerce Department Bureau of Industry and Security's Disruptive Technology Strike Force, and Molly Braese, chief of staff to the assistant Commerce secretary for export enforcement at the Bureau of Industry and Security.
· Wednesday, October 23, 9:00 a.m. – The Center for Global Development holds a discussion on "Bretton Woods at 80: Priorities for the Next Decade."
· Wednesday, October 24, 9:00 a.m. – The Peterson Institute for International Economics holds a virtual discussion, beginning at 9 a.m., on "Geneva Report Launch: Much Money, Little Capital, and Few Reforms: The 2023 Banking Turmoil."
· Wednesday, October 24, 11:00 a.m. – The Peterson Institute for International Economics holds a virtual discussion, beginning at 11 a.m., on "Monetary Policy Transmission Across the Euro Area."
· Wednesday, October 24, 1:00 p.m. – The Peterson Institute for International Economics holds a virtual discussion on "Monetary Policy During Periods of Economic Volatility." Adrian Orr, Governor of the Bank of New Zealand, 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
Washington’s Financial Regulators Go Quiet A Month Before the Elections; Face-Off Between the Fed and the FDIC on Basel III, and Regulated Election Betting Starts Up
October 7 - 11, 2024
Congress is out campaigning in their home states and districts (although they may briefly come back in next week for an emergency vote on disaster aid for those areas recently slammed by Hurricane Helene). All the regulators are here in town but carrying very light schedules. The most significant events we could out there are the monthly board meeting of the Farm Credit Bureau and an SEC event being cohosted with the Federal Thrift Retirement Investment Board entitled Your TSP Account – What to Think About When Nearing Retirement or Considering Leaving the Government.”
Also this week, there are a number of speeches by Federal Reserve Board Governors this week (there are always a lot of Fed Governor speeches every week other than the black-out weeks in advance of the Fed Open Market Committee meetings, aren’t there?).
While Congress is out, that does not mean they are quietly working away at various legislative initiatives. Word came down several days ago that Senator Bill Hagerty (R-TN) is working on a new crypto regulatory bill. Hagerty is regularly mentioned as a possible Trump Cabinet member – perhaps Treasury Secretary – so whatever he proposes should be paid attention to – although, considering the extremely short post-election Congressional calendar, his bill has virtually zero chance of being passed this year and would have to be considered in the new Congress in 2025.
Also, this past week, there were reports that the Federal Reserve’s revised Basel III regulations are caught up in a quiet fight with the FDIC Board—specifically, Consumer Financial Protection Bureau Director (and FDIC Board member) Rohit Chopra. Chopra is holding out for a much more stringent version of the regulation—more akin to the first draft.
And bringing this note back to the elections: A federal appeals court this past Wednesday cleared the way for the financial exchange Kalshi to move forward with the first fully regulated election-betting markets in the U.S. Place your bets, everyone!
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 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, October 7, 1:00 p.m. – Federal Reserve Board Governor Michelle W. Bowman will speak at the Independent Bankers Association of Texas (IBAT) Annual Convention, San Antonio, Texas.
· Tuesday, October 8, 3:00 a.m. (Frankfurt, Germany time) – Federal Reserve Board Governor Adriana D. Kugler will give a speech on Global Inflation at the European Central Bank Conference on Monetary Policy 2024, Frankfurt am Main, Germany.
· Tuesday, October 8, 7:30 p.m. – Federal Reserve Board Vice Chair Vice Chair Philip N. Jefferson will give a speech on “The Discount Window: 1913-2000” at Davidson College, Davidson, North Carolina.
· Wednesday, October 10, 9:15 a.m. – Federal Reserve Board Governor Lisa D. Cook will give remarks on “Entrepreneurship and Innovation” at the Women for Women Summit presented by the College of Charleston School of Business, Charleston, South Carolina.
· Wednesday, October 10 – The Chicago Federal Reserve Bank’s Payments Symposium will be held Chicago. Chicago Fed President Austan Goolsbee, Richmond Fed President, and Cleveland Fed President Loretta Meister are scheduled to speak.
· Friday, October 11 – The Chicago Federal Reserve Bank’s Community Bankers Symposium will be held in Chicago. Chicago Fed President Austan Goolsbee will speak along with Federal Reserve Board Governor Michelle W. Bowman will give remarks on community banking at the Federal Reserve Bank of Chicago Community Bankers Symposium (Virtual).
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
· Tuesday, October 8, 10:00 a.m. – The SEC and the Federal Retirement Thrift Investment Board will host “Your TSP Account – What to Think About When Nearing Retirement or Considering Leaving the Government” (a virtual event)
· Wednesday, October 9, 4:30 p.m. – SEC Chair Gary Gensler will participate in a fireside chat at the NYU Law Institute for Corporate Governance & Finance in New York.
· Thursday, October 10, 2:00 p.m. – The SEC will hold a Closed Meeting.
Commodities Futures Trading Commission
· Tuesday, October 8 & 9 – The CFTC hosts a hybrid event as part of World Investor Week entitled Explore Relationship Confidence Scams and Anti-Fraud Resources in Washington, D.C. and Austin, Texas.
· Wednesday, October 9, 7:00 p.m. – CFTC Commissioner Caroline D. Pham will speak on a keynote fireside chat at the Northwind Professional Institute’s 2024 Disruptive Technologies Invitational Forum in Cambridge, Canada.
· Friday, October 11, 11:50 a.m. (MT) – CFTC Commissioner Caroline D. Pham will speak virtually on a fireside chat titled “Pushing Crypto Forward in the US” at Permissionless III, presented by Blockworks and BANKLESS in Salt Lake City, Utah.
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
· Friday, October 11, 9:00 a.m. – Acting Comptroller of the Currency Michael Hsu will speak about the OCC Initiatives in Support of Minority Depository Institutions at the National Bankers Association2024 Annual Conference in Washington, D.C.
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, October 10, 10:00 a.m. – The Farm Credit Administration holds a board meeting. They are scheduled to vote on a proposed rule dealing with Annual Independent Audits and Internal Controls over Financial Reporting Requirements
Farm Credit Insurance Corporation
· Wednesday, October 9, 10:00 a.m. – The Farm Credit Insurance Corporation holds a board meeting. The agenda includes Quarterly FCSIC financial reports, Quarterly report on insured obligations, Quarterly report on annual performance Plan, Annual performance plan and Annual budget (Open), and Quarterly report on insurance risk (Closed)
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
· Sunday – Tuesday, October 6-8 – the American Bankers Association holds its Bank Marketing Conference in Chicago, Illinois.
· Tuesday – Thursday, October 8 -10 – The American Bankers Association holds its annual Financial Crimes Enforcement Conference in Arlington, Virginia.
Think Tanks and Other Events
· Wednesday, October 9, 9:00 a.m. – The Peterson Institute for International Finance will hold an event entitled “A holistic perspective on climate and financial policies”
Please let us know if you have any questions or would like to be added to our email distribution list.
The U.S. Financial Regulatory Week Ahead
September 2 - 6, 2024
Washington Gets Back to Work… Sort Of…
And What is Going on at the FDIC?
Monday is Labor Day, the last day of summer, and the virtual starter gun is being fired for what will be a busy and, at times, wild autumn in Washington. Schools are back in session, vacation is over, and Washington is back to work (except Congress, which gets back September 9th).
There really is not anything of note on the regulatory agenda this week—traditionally, this is the week everyone in Washington uses to get back in the groove of work and prep for the onslaught of regulatory meetings and rule-making, lawsuits, legislation, and of course, the November elections.
This past week, the one big event of note was yet another blow-up at the Federal Deposit Insurance Corporation (FDIC) when FDIC Board Member Jonathan McKernan released a memo blasting the Democratic members of the board—including Chair Marty Gruenberg—for how they intend to move forward in investigating senior FDIC officials for creating and maintaining a toxic workplace, including allegations against Gruenberg. In a closed-door meeting this past Wednesday, the board voted along partisan lines on how the investigation will be conducted.
McKernan said that what was voted on was a “convoluted and complicated process” that limits the information available to outside investigators. However, the public cannot judge for themselves because the board voted to keep the resolution secret and will not publish it.
To be clear as to the extent of the crisis at the FDIC caused by Gruenberg, it is worth reviewing the facts of the situation: Gruenberg, who was cited by an outside review conducted by the law firm Cleary Gottlieb as leading and allowing a highly toxic workplace at the FDIC for years (and apparently is still under investigation in some way) refuses to resign and is allowed to vote on how he should be investigated. The majority of the FDIC board also refuses to allow the public to see the resolution they voted on describing how investigations will be conducted. And Gruenberg will almost assuredly be sitting in the chair for the rest of the year because he knows, and everyone else knows, his successor will almost assuredly not be confirmed by the Senate until the spring of 2025. How the once mighty FDIC has fallen.
As we started this week’s note by saying, the regulators are not conducting much public business. The SEC has a closed meeting scheduled, and one Fed speech has been scheduled.
We hope you enjoy the week – it is going to get very busy the following week and months to come:
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
· Friday, September 6, 11:00 a.m. – Federal Reserve Board Governor Christopher J. Waller gives a speech on the economic outlook at the University of Notre Dame Department of Economics in South Bend, Indiana.
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, September 5, 2:00 p.m. – The SEC will hold 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
· Thursday, September 4, 11:00 a.m. – The FTC holds closing arguments before the Administrative Law Judge re: Horseracing Integrity and Safety Authority.
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 want to be added to our email distribution list.
U.S. Financial Regulatory Week Ahead
Washington Slowly Creeps Back to Work
August 26 - 30, 2024
For much of the US, schools are back in session, and most folks have wrapped up their summer holidays. But in Washington, next week is the last week of summer holidays. Which means it will still be mostly quiet around town and at the regulatory agencies. The only regulatory activity we can find is the Securities and Exchange Commission (SEC) holding an open meeting and the Federal Trade Commission (FTC) holding an administrative court hearing about horse racing. But as the last week showed, Washington is slowly getting back to work and getting revved up for a busy fall.
Perhaps the significant event last week was not in Washington but in Texas, where a federal judge blocked the FTC’s sweeping ban on noncompete agreements. The ruling slammed the FTC, saying, “In sum, the Rule is based on inconsistent and flawed empirical evidence, fails to consider the positive benefits of non-compete agreements, and disregards the substantial body of evidence supporting these agreements.” The FTC is likely to appeal the ruling, but it does not look good that the FTC will ultimately succeed – as most observers predicted when the FTC first launched into this effort.
Meanwhile, the FDIC announced the hiring of a former federal prosecutor to oversee the agency’s efforts to root out the toxic workplace culture exposed in an independent report earlier this year. Carrie Cohen, who currently is the co-chair of the investigations and white-collar practice at the law firm of Morrison Foerster and is a former Assistant District Attorney in the Southern District of New York, was hired by the board. Her hiring triggered a new round of Congressional Republicans to demand the immediate resignation of current FDIC Chair Marty Gruenberg (who continues to refuse to resign until a replacement is confirmed by the Senate – which probably won’t happen until 2025).
Finally, we saw Federal Reserve Board Vice Chair for Supervision Michael Barr speak about the constant battle banks and regulators are waging against cyberattacks and technology failures. Barr said such attacks are increasingly growing as threats: “There is a lot of work to do. It is a constant process, a constant battle as the technology changes.”
We expect the week of September 1st (Labor Day) we will see a significant pick up of events. Until then, enjoy the relative quiet! Below is the listing of events among regulators in the coming week:
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 and Administrative Meetings & Events
Federal Reserve Board and Federal Reserve Banks
Wednesday, August 28, 1:15 a.m. EST – Federal Reserve Board Governor Christopher J. Waller gives a speech on payments at the Global Fintech Festival 2024, Mumbai, India.
Thursday, August 29, 2:30 p.m. CT – Atlanta Federal Reserve Bank President Raphael Bostic to give an "Introduction to the Federal Reserve and an Economic Outlook" presentation before a Georgia Tech Scheller College of Business Management of Financial Institutions class.
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
Wednesday, August 28, 10:00 a.m. – The SEC will hold an Open Meeting. They will consider adopting amendments to reporting requirements on Forms N-PORT and N-CEN.
Thursday, August 29, 2:00 p.m. – the SEC will hold 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
Thursday, August 29, 9:30 a.m. – The Federal Trade Commission holds an evidentiary hearing before an Administrative Law Judge on Horseracing Integrity and Safety Authority.
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
Monday, August 26, 2:00 p.m. – The Urban Institute holds a virtual discussion, beginning at 2 p.m., on "Identifying Solutions to Address Wealth Inequities: A Conversation with Government, Business, and Nonprofit Leaders.
Tuesday, August 27, 2:00 p.m. – The Bipartisan Policy Center holds a virtual discussion, beginning at 2 p.m., on "Reforming the HCV (Housing Choice Voucher) Program Through Direct Rental Assistance."
Wednesday, August 28, 9:00 a.m. – The Peterson Institute for International Economics holds a virtual discussion, beginning at 9 a.m., on "The Bank-Sovereign Nexus in Developing and Emerging Economies."
Thursday, August 29, 12:30 p.m. – The Federalist Society for Law and Public Policy Studies holds a virtual discussion, beginning at 12:30 p.m., on "Understanding the Regulatory Landscape for Private Fund Advisers."
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 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
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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