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.

Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

Washington Regulators Get Very Quiet A Week Before the Elections and the Next FMOC Meetings; SEC Chair Gensler Heads to Vegas to Talk About the Global Money Ecosystem

October 28 - November 1, 2024

It will be a mostly quiet week in Washington’s regulatory world.  Elections have that effect on Washington as members of Congress are all off either campaigning for re-election or campaigning for colleagues.  Congressional staff are mostly working from home or on shortened schedules.

The biggest election from the financial regulatory perspective is Senate Banking Committee Chairman Sherrod Brown's (D-OH) tense reelection battle against Republican Bernie Moreno. The latest polls suggest the race is a statistical tie, as Moreno has gained significant ground on Brown in the last two weeks.   

The regulatory agencies are, of course, at work but not much is scheduled publicly.  Aside from a fireside chat SEC Chair Gary Gensler will participate in at the Money 20/20 Conference on tech, finance, and the global money ecosystem and a CFTC Open meeting, there is not much going on.

Perhaps the biggest event of the week will be the American Bankers Association’s (ABA) Annual Convention being held in New York.  Treasury Secretary Janet Yellen is the keynote speaker, and she is expected to offer her thoughts on the state of the US economy and the current state of play of bank regulation.

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

·       The Federal Reserve Board member have no public speaking events scheduled as they are in the “Quiet Period” in advance of the November 7 Federal Open Markets Committee Meeting.

 

U.S. Treasury Department

·       Monday, October 28, 11:15 a.m. – Treasury Secretary Janet L. Yellen drops by a meeting of the U.S. China Financial Working Group and the Economic Working Group.

 

·       Tuesday, October 29, 9:00 a.m. – The Treasury Department holds a meeting of the Debt Management Advisory Committee.  The agenda includes: Discussion on the economy; Discussion on financial markets; Discussion on treasury financing; Discussion on debt management; and Written report of its recommendations.

 

Department of Commerce

·       There are no significant events scheduled at this time.

 

Department of Housing and Urban Development

·       There are no significant events scheduled at this time.

 

Securities and Exchange Commission

·       Monday, October 28, 2:40 p.m. – SEC Chair Gary Gensler will participate in a fireside chat at the Money 20/20 Conference in Las Vegas, Nevada.

 

·       Tuesday, October 29, 2:30 p.m. – SEC Chair Gary Gensler will participate in a fireside chat with Erica Williams, Chair of the Public Company Accounting Oversight Board (PCAOB), as part of the PCAOB’s International Institute on Audit Regulation. A livestream of the chat will be available.

 

·       Thursday, October 31, 2:00 p.m. – The SEC will hold a Closed Meeting.

 

Commodities Futures Trading Commission

·       Tuesday, October 29, 10:00 am. – 4:30 p.m. – The CFTC will hold an Open Meeting. The Commission will consider: Final Rule – Operational Resilience Framework for Futures Commission Merchants, Swap Dealers, and Major Swap Participants, a Final Rule regarding Investment of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations, a Final Rule on Derivatives Clearing Organizations Recovery and Orderly Wind-down Plans; Information for Resolution Planning, the Commission Fall 2024 Unified Agenda Submission, and the CFTC Executive and Supervisor Compensation Structures.

 

·       Thursday, October 30, 9:20 p.m. – CFTC Commissioner Summer K. Mersinger will deliver a keynote address at the ISDA Annual Legal Forum in New York.

 

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.

 

FINRA

·       October 30 – 31 – FINRA hosts the Diversity Leadership Summit (virtually).

 

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

·       Tuesday, October 28 - 29 – The American Bankers Association holds its 2024 Annual Convention.  Treasury Secretary Janet Yellen will give a keynote speech.

 

·       Tuesday & Wednesday, October 29 -30 – SIFMA holds its National Conference on the Securities Industry in New York.

·       Wednesday, October 30 – ISDA holds its Annual Legal Forum in New York.

 

Think Tanks and Other Events

·       Friday, October 31, 9:00 a.m. – The Peterson Institute for International Economics holds a virtual discussion on "Basel III implementation status and prospects," referring to a framework that sets international standards for bank capital adequacy, stress testing and liquidity requirements.

 

 

 

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

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.

Read More
Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

Washington Gets Ready for IMF/World Bank Week, The FDIC’s Look at the Resolution of Systemically Important Banks, and HUD Looks at the Mortgage Market and Access to Capital

October 14 - 18, 2024

It is going to be another relatively quiet week in Washington across the board – Congress remains out of session until after the elections, and regulators are quietly preparing for the annual International Monetary Fund/World Bank weeklong meetings that begin on October 21st.  With finance ministers, central bankers, and other major regulatory officials converging on Washington for back-to-back meetings, speeches, and events, there will likely be a lot to watch and report (which we will detail in next week’s report).

We would note that that  The Federal Deposit Insurance Corporation holds a meeting of the FDIC Systemic Resolution Advisory Committee to discuss the resolution of systemically important financial companies.  This continues to be a moving target for bank regulators as banks and Congressional Republicans push back on expanding the definitions for “systemically important.” 

Also, this coming week, the Department of Housing and Urban Development is partnering with Ginnie Mae to host a conference looking at the mortgage market and access to capital.  With the housing market nationally struggling with still too-high interest rates and a shortage of housing inventory – an issue that has become a hot-button issue on the presidential and congressional campaign trails – this will be a particularly interesting event.  In addition to this, House Financial Services Committee Ranking Democrat Representative Maxine Waters (D-CA) said in an interview last week that if Democrats win control of the House in November and she becomes Committee chair again, her number one priority issue will be housing.

Last week, regulators, lobbyists, and everyone else who follows the banking sector were jarred to see TD Bank hit with a $3 billion fine and agreed to asset caps after submitting a guilty plea for money laundering by drug traffickers. As the 10th largest bank in the U.S., the size and impact of the penalties are pretty significant.

Also last week, the digital asset exchange Crypto.com sued the Securities and Exchange Commission after learning they are the target of potential charges by the agency. Crypto argued in their lawsuit that the SEC has no authority over their business or the crypto business overall, saying the agency is acting under “an unlawful de factor rule.”  This will be a very interesting case, especially in light of the Supreme Court’s Chevron decision earlier this year clipping the wings of aggressive regulatory actions.

Finally, and perhaps most impactful to markets, the Federal Trade Commission and the Department of Justice’s Antitrust Division jointly released their final version of Hart-Scott-Rodino rules (e.g., new rules dealing with mergers and acquisitions).  One aspect of the rules that private equity and other acquisition firms took note of is how the regulators want to look at how Big Tech firms and private equity are acquiring large amounts of smaller companies in a bid to snuff out oncoming competition potentially. 

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

·       Tuesday, October 15, 1:00 p.m. – Federal Reserve Board Governor Adriana Kugler gives remarks virtually entitled “Career Opportunities and Diversity in Economics” at the Exploring Careers in Economics event hosted by the Federal Reserve.

 

·       Friday, October 18, 12:10 p.m. (Vienna, Austria) – Federal Reserve Board Governor Christopher J. Waller gives remarks entitled “Decentralized Finance” at the Nineteenth Annual Vienna Macroeconomics Workshop in Vienna, Austria.

 

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.

 

Department of Housing and Urban Development

·       Tuesday, October 15, 8:30 a.m. – HUD and Ginnie Mae will host a strategic summit on "Mortgage Market Resilience and Access to Credit."  Participants include am Valverde, acting president of Ginnie Mae; Daniel Hornung, special assistant to the president for economic policy at the National Economic Council; Julia Gordon, assistant HUD secretary for housing and Federal Housing Administration commissioner; Bob Broeksmit, president/CEO of the Mortgage Bankers Association; David Dworkin, president/CEO of the National Housing Conference; Ted Tozer, fellow in the Housing Finance Policy Center at the Urban Institute and former Ginnie Mae President.

 

Securities and Exchange Commission

·       Tuesday, October 15, 2:00 p.m. – 6:00 p.m. – SIFMA will hold its annual Private Credit Forum.  SEC Commissioner Hester Pierce will deliver remarks.

 

·       Thursday, October 17, 2:00 p.m. – The SEC will hold a Closed Meeting.

 

Commodities Futures Trading Commission

·       Tuesday, October 15, 6:00 p.m. – CFTC Commissioner Christy Goldsmith Romero will receive the Pioneer Award from the Asian Pacific American Bar Association (APABA) of Washington, D.C. at the Annual Gala.

 

·       Wednesday, October 16, 9:00 a.m. – 1:00 p.m. – The CFTC’s The Commodity Futures Trading Commission’s Division of Clearing and Risk will hold a public roundtable Oct. 16 from 9:00 a.m. to 1:00 p.m., to discuss existing, new, and emerging issues in clearing. The roundtable will be held in the Conference Center at CFTC's headquarters at Three Lafayette Centre, 1155 21st Street N.W., Washington, D.C.

 

·       Wednesday, October 16, 11:00 a.m. – CFTC Commissioner Caroline D. Pham will speak on a keynote fireside chat at FIX Trading Community’s Americas Trading Conference 2024 in New York.

 

Federal Deposit Insurance Corporation

·       Tuesday, October 15, 9:00 a.m. – The Federal Deposit Insurance Corporation holds a meeting of the FDIC Systemic Resolution Advisory Committee to discuss the resolution of systemically important financial companies.

 

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

·       Friday, October 18, 8:00 a.m. – 6:00 p.m. – The FTC hosts the Second Federal Trade Commission Conference on Marketing and Public Policy in Washington, D.C.

 

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

·       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, October 15, 9:00 a.m. – The Institute for International Finance holds a hybrid forum on the IMF’s Global Financial Stability Report.

 

·       Tuesday, October 15, 2:00 p.m. – 6:00 p.m. – SIFMA will hold its annual Private Credit Forum.  SEC Commissioner Hester Pierce will deliver remarks.

 

·       Thursday, October 17, 8:00 a.m. – The Brookings Institution holds an event entitled “Meeting the global climate finance challenge: A conversation with UN Climate Change Executive Secretary Simon Stiell” in Washington, D.C.

 

 

Think Tanks and Other Events

·       Sunday and Monday, October 13 – 14 - Stanford University's Hoover Institution holds a conference, beginning at 11:05 a.m., on "A 50-Year Retrospective on The Shadow Open Market Committee and Its Role in Monetary Policy” in Stanford, California.  Federal Reserve Board Governor Christopher Waller will deliver remarks.

 

·       Friday, October 17, 12:00 p.m. – The Urban Institute holds a discussion on "Sustainable Homeownership and Wealth Preservation for Communities of Color."

 

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

The Fed Backs Down on Bigger Bank Capital Standards Setting Up A Possible FDIC Vote This Week; Election Betting Gets Held Up Again, and FDIC Chair Gruenberg Refuses to Testify Before Congress

September 16 - 20, 2024

The coming week will be filled with lots of regulatory speeches, congressional hearings, and a good number of trade association conferences. However, the biggest event is likely to be the FDIC's Open Meeting, where they may vote on the much-criticized and now scaled-back bank capital requirements. In a major concession to lobbying by big banks and many members of Congress, Federal Reserve Vice Chair Michael Barr announced last week that the Fed, OCC, and FDIC had negotiated a re-write, but it is unclear if all the details have been finalized among the three regulators.

The FDIC action comes as embattled FDIC Chair Marty Gruenberg shockingly refused a request to testify before the House Financial Services Committee. Gruenberg, who has announced he will at some point step down from his role, allowing a toxic work environment and widespread sexual harassment as well as his own personal unprofessional behavior, was supposed to testify on September 19, but his staff informed the Committee he would not show up. As we have noted in previous updates, Gruenberg refuses to step down until a replacement is confirmed by the US Senate, which most seasoned observers believe will not happen until next year due to the elections and the Senate schedule – something Gruenberg clearly understands as he desperately clings to power.

Regarding Gruenberg's replacement, Senate Banking Committee Chair Sherrod Brown (D-OH) is apparently looking to hold a committee confirmation vote for current CFTC Commissioner Christy Goldsmith Romero this week. But we know two senators are out of action this week for health reasons and believe the committee vote probably will not happen.

Also, election betting on financial exchanges was expected to begin this coming week. However, a federal appellate court halted the financial exchange Kalshi on Friday to review the situation more closely. The CFTCC had ruled against allowing such betting through derivative markets. However, a federal judge overturned the CFTC block Thursday, and  Kalshi began to trade election betting contracts quickly, but they are now in limbo as the appellate court looks deeper into the matter. How long until they rule is anyone's guess. But it could come as early as this week.

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

 

U.S. Congressional Hearings 

U.S. Senate

·       Tuesday, September 17, 2:30 p.m. – The Senate Banking Committee’s Subcommittee on Financial Institutions and Consumer Protection holds a hearing entitled “Back to School: Shedding Light on Risks and Harm in the Private Student Lending and Servicing Market”

 

·       Wednesday, September 18, 2:00 p.m. – The Senate Banking Committee’s Economic Policy Subcommittee will hold a hearing on the macroeconomic impacts of potential tax reform in 2025.

 

·       Sometime During the Week of September 16 – TBD – Senate Banking Committee Chair Sherrod Brown (D-OH) may attempt to bring up for a committee vote the nomination of FDIC Chair-designate Christy Goldsmith Romero – along with several other nominations (an SEC Commissioner nomination, an insurance expert for the Financial Stability Oversight Council, and a nominee for Assistant Secretary of Treasury). 

 

House of Representatives

·       Wednesday, September 18, 10:00 a.m. – The House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Inclusion will hold a hearing entitled “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets.”  

 

·       Wednesday, September 18, 10:00 a.m. – The House Appropriations Transportation, Housing and Urban Development, and Related Agencies Subcommittee holds a hearing on "Oversight Hearing: Inspectors General of the Department of Housing and Urban Development, Department of Transportation, and the National Railroad Passenger Corporation."

 

·       Wednesday, September 18, 2:00 p.m. – The House Financial Services Committee’s Subcommittee on National Security, Illicit Finance, and International Financial Institutions will hold a hearing entitled “Protecting Americans Savings: Examining the Economics of the Multi-Billion Dollar Romance Confidence Scam Industry.”

 

US Regulatory Meetings & Events

 

Federal Reserve Board and Federal Reserve Banks

·       Tuesday and Wednesday, September 17 & 18 – The Federal Reserve Board’s Open Market Committee meets to discuss the economy and interest rates.  Federal Reserve Board Chair Jay Powell will give a press release on the 18th at 2:00 p.m.

 

U.S. Treasury Department

·       Monday, September 16, 1:30 p.m. – The Treasury Department holds a meeting of the Federal Advisory Committee on Insurance to discuss topics related to climate-related financial risk and the insurance sector, cyber insurance developments, and international insurance issues and to receive status updates from each of its subcommittees and from FIO on its activities and consider any new business.

 

·       Tuesday, September 17, 3:45 p.m. – Treasury Undersecretary for Domestic Finance Nellie Liang will speak at the Georgetown Univeristy Psaros Center for Financial Markets and Policy in Washington, D.C..

 

·       Thursday, September 19, 9:30 a.m. – The Treasury Department’s Community Development Financial Institutions Fund holds a meeting of the Community Development Advisory Board for a report from the CDFI Fund Director on the activities of the CDFI Fund and panel discussions related to the advisory board's subcommittees.

 

Department of Commerce

·       There are no significant events scheduled at this time.

 

Securities and Exchange Commission

·       Wednesday, September 18, 10:00 a.m. – The SEC will hold an Open Meeting. The agenda is whether to amend Regulation NMS to “allow the minimum pricing increments for quoting of certain NMS stocks, reduce the access fee caps, and enhance the transparency of better priced order.”

 

·       Thursday, September 19, 10:00 a.m. – the SEC’s Investor Advisory Committee meets at the SEC Headquarters. The committee will host two panels.  The first is entitled “Investment Advice: A History and Update on Who is Required to Serve in Your Best Interest” and the second “Key Topics from Securities Litigation: Shareholder Proposals and “Tracing” in Section 11 Litigation.”  The full agenda can be found HERE.  And a full listing of the Advisory Committee members can be found HERE.

 

Commodities Futures Trading Commission

·       Tuesday, September 17, 10:30 a.m. – CFTC Chair Rostin Behnam to speak at Georgetown University’s Psaros Center for Financial Markets and Policy Financial Markets Quality 2024.

 

·       Wednesday, September 18, 11:00 a.m. (CDT) – CFTC Commissioner Summer K. Mersinger will participate in the 2025 Outlook Panel at the Futures Industry Association’s Forum: Commodities 2024 in Houston, Texas.

 

·       Friday, September 20, 10:00 a.m. – The CFTC will hold an Open Meeting to consider Final Guidance regarding the Listing of Voluntary Carbon Credit Derivative Contracts.

 

FINRA

·       There are no significant events scheduled at this time.

 

Federal Deposit Insurance Corporation

·       Tuesday, September 17, 10:00 a.m. – The FDIC Board will hold an Open Meeting.  The agenda includes a proposed rulemaking on Custodial Deposit Accounts as well as the FDIC’s final statement of Policy on Bank Merger Transactions.

 

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

·       Thursday, September 19, 10:00 a.m. – The NCUA holds a board meeting. 

 

Federal Trade Commission & Department of Justice Antitrust Division

·        Thursday, September 19, 11:00 a.m. – The FTC will hold an Open Commission Meeting. The Commission will hear a staff presentation on the Social Media and Video Streaming Services 6(b) Orders and a staff presentation on the Rule on the Use of Consumer Reviews and Testimonials.

 

·       Thursday, September 19, 1:00 p.m. – The FTC will hold an informal hearing on the Proposed Amendments to the Energy Labeling Rule.

 

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

·       September 15 – 18, 2024 – SIFMA is holding its Ops2024 Conference in San Diego, California.

 

·       September 18, 10:00 a.m. – The International Institute for Finance holds an online conference entitled “Energy Supply Ratio: Examining a New Climate Disclosure Metric.”

 

Think Tanks and Other Events

·       Monday, September 16, 11:00 a.m. – The Wilson Center's Global Europe Program holds a discussion on "Cyprus Banks on the Frontline of Sanctions Compliance."

 

·       September 17, 1:00 p.m. – The Peterson Institute for International Economics holds a virtual discussion entitled “The Economic Danger of Revoking China’s Permanent Normal Trade Status.”

 

·       Wednesday, September 18, 2:00 p.m. – The Brookings Institution is holding an event entitled “Mobilizing the Market: The Barriers to Financing a More Scalable Climate Response”  Ethan Zindler, the Climate Counselor at the US Treasury Department, will give the keynote remarks.

 

·       Thursday, September 19, 5:00 p.m. – The American Enterprise Institute will hold an event entitled “The Forgotten Solution to the Housing Crunch: A Premier of the AEI Housing Center’s Documentary on Light-Touch Density.”

 

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. Regulatory Week Ahead

August 12 - 16, 2024

Giving You Back Your Five Minutes…

We want to give you back the five minutes you would normally spend reading the U.S. Financial Regulatory Week Ahead by saying right up front: There is nothing going on, and thus, there is nothing to read in this week’s report. Washington regulators are all out on vacation.

We Hope you are enjoying this quiet time, too.  But, just for the record,  below is a listing of the one event we could find scheduled – an SEC Closed Meeting on Thursday – taking place this coming week in Washington:

 

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

·       There are no significant events scheduled at this time.

 

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, August 15, 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.

 

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.

 

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 would like to be added to our email distribution list.

Read More
Francis Kelly Francis Kelly

U.S. Financial Regulatory Week Ahead

Summer Break Comes to Washington

August 5 - 9 , 2024

Last week, we said the Dog Days of Summer were not officially here.  Well, this week, they are here in force.  Washington collectively ran out of town for the summer holidays.  There is very little going on this coming week – no Fed speeches, no big regulatory agency meetings, no Congressional hearings, not many think tank events or trade association events.  So, for now, we should all enjoy the quiet.

But last week was anything but quiet.  The Federal Deposit Insurance Corporation (FDIC) issued a bipartisan agreement among the board on a proposed rulemaking to step up oversight of asset managers and the amount of shares in banks that they own.  Until now, this has been a self-certification process with the asset managers promising to live by the rules.  No more.  Bank examiners will be looking much more closely at who owns what amount of shares in banks – something the asset management industry does not like.  But when you have the FDIC Board – Republicans included – agreeing more has to be done, that is tough to fight back against.   You can read all the materials  and proposed rulemaking by the FDIC  HERE.

But that was not the only action happening at the FDIC last week: The agency’s Inspector General released a scathing report further detailing the abusive atmosphere allowed to persist among employees, including how FDIC leadership failed to properly address allegations of sexual harassment of employees or to implement programs designed to prevent such misconduct.  The Inspector General also revealed a separate report is forthcoming detailing  “FDIC executives’ knowledge of harassment and related misconduct” as well as “factual findings regarding selected allegations that senior officials personally engaged in harassment or related misconduct.”

Somehow, FDIC Chair Martin Gruenberg continues to hold onto his seat, saying he will step down only when a replacement is confirmed by the Senate – which, considering the Senate Banking Committee failed to move on an expected confirmation vote last week, kicking it into September – makes us believe Gruenberg could be still sitting in the chair for months and months to come.  That is a true scandal in and of itself.

Turning to Congress, the House of Representatives left for the summer break two weeks ago while the Senate was in session last week.  Despite hanging around and extra week, they did not get two expected actions done: First, as mentioned above, the Senate Banking Committee did not move on the nomination of Christy Goldsmith Romero as the next FDIC Chair. Senate Banking Committee Chair Sherrod Brown (D-OH) put it off until September.  But we think he will still have trouble moving the nomination forward as – so far – all Republicans oppose her nomination.

Over at the Senate Agriculture Committee,  Chair Debbie Stabenow (D-MI) pulled back from marking up her crypto regulatory bill, also choosing to wait until the Senate comes back in September.   We have a feeling the dynamics and concerns over the draft bill will be pretty much unchanged by then, ending Stabenow’s efforts (she is retiring at the end of this session).

Meanwhile, the House of Representatives – while out of session – still fired off two missives of note. First, the House Republican Environmental, Social, and Governance (ESG) Working Group—led by Oversight and Investigations Subcommittee Chairman Bill Huizenga (MI-04)—released its final staff report Thursday.  The report is the culmination of the Working Group’s comprehensive examination of the factors contributing to the rise of ESG initiatives and the consequences for everyday investors, in addition to recommendations to protect American capital markets from the threats posed by these politically motivated mandates.

The report calls for legislative action on a number of major points, including:

  • Reform the proxy voting system to safeguard the interests of retail investors.

  • Promote transparency, accountability, and accuracy in the proxy advisory system.

  • Enhance accountability in shareholder voting by aligning voting decisions with the economic interests of shareholders.

  • Increase transparency and oversight of large asset managers to ensure their practices reflect the pecuniary interest of retail investors.

  • Improve ESG rating agency accountability and transparency to safeguard retail shareholders.

  • Strengthen oversight and conduct thorough investigations into federal regulatory efforts that would contort our financial system into a vehicle to implement climate policy.

  • Demand transparency, responsibility, and adherence to statutory limits from financial and consumer regulatory agencies.

  • Protect U.S. companies from burdensome European Union (“EU”) regulations, safeguarding American interests in global markets.

You can read the full report HERE.

And second, this past Wednesday, the Chairman of the House Financial Services Committee, Patrick McHenry (R-NC), and all the Committee Republicans sent a letter to Federal Reserve Chairman Jay Powell demanding the Fed withdraw and re-propose the Basel III Endgame rulemaking in its entirety, given the substantial changes to its original form. The letter follows Chairman Powell’s testimony before the Committee in support of re-proposal where he suggested it needed substantial re-writes.  You can read the full letter HERE.   It is another hammer blow against the draft rules, which are already on life-support as Fed Vice Chair for Supervision Michael Barr scrambles to salvage the proposal.

Below is a listing of all the other (very few) significant regulatory-related events this coming week:

U.S. Congressional Hearings

U.S. Senate

  • The Senate is out for the month of August and returns on September 9. No events are scheduled at this time.

House of Representatives

  • The House is out for the month of August and returns on September 9.   No events are scheduled at this time.

US Regulatory Meetings & Events

Federal Reserve Board and Federal Reserve Banks

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, August 8, 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.

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

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

Think Tanks and Other 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

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."

 

 

  • 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

 

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

 

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

 

 

 

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.

 

 

 

 

 

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

July 22 - 26, 2024

The Dog Days of Summer are upon us in Washington.  There is not much happening this coming week regulatory-wise, but we would note there are some interesting congressional hearings. 

Of particular note, the Senate Permanent Subcommittee on Investigations (PSI) will hold a hearing on Zelle Fraud.  Senior executives from Bank of America, J.P. Morgan, and Wells Fargo will testify about what exactly happened.  PSI is an unusual Subcommittee in Congress with special powers to conduct deep investigations into virtually anything.  But is long has been a source of intense investigations into financial services related fraud, its hearings can and often do lead to criminal indictments down the road from the US Department of Justice.

Also, this week, the Senate Banking Committee is holding a hearing about “Advancing National Security through Export Controls, Investment Security, and the Defense Production Act.”  While a good piece of the hearing will likely focus on the national security aspects of trade with China, sanctions on Russia, and other related issues, we think there is a good chance this will quickly veer into aspects of Nippon Steel’s ongoing bid to acquire U.S. Steel.  Considering the Chair of the Banking Committee is Senator Sherrod Brown (D-Ohio), a fierce critic of the deal who is in the re-election battle of his career, we cannot see him not taking the opportunity to speak out against the deal.

Finally, we will be watching FDIC Vice Chair Travis Hill speak this week at the American Enterprise Institute on proposed changes to banking regulation and resolution policies. If President Trump is elected in November, many see Hill as the natural choice to be the next FDIC Chair, so this could be a preview of his agenda in 2025.

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

  

U.S. Congressional Hearings 

U.S. Senate

·       Tuesday, July 23, 3:30 p.m. – The Senate Permanent Subcommittee on Investigations holds a hearing on Zelle fraud, featuring executives from JPMorgan Chase, Bank of America, and Wells Fargo. 

 

·       Thursday, July 25, 10:00 a.m. – The Senate Banking Committee holds a hearing entitled “Advancing National Security through Export Controls, Investment Security, and the Defense Production Act.”

 

House of Representatives

·       Tuesday, July 23, 10:00 a.m. – The House Agriculture Committee holds a hearing on "Financial Conditions in Farm Country."

 

·       Tuesday, July 23, 10:00 a.m. – The House Financial Services Committee holds a hearing entitled “AI Innovation Explored: Insights into AI Applications I Financial Services and Housing.”

 

·       Wednesday, July 24, 10:00 a.m. – The House Financial Services National Security, Illicit Finance, and International Financial Institutions Subcommittee holds a hearing on "Wasteful Spending and Inefficiencies: Examining DoD Platform Performance and Costs."

 

·       Wednesday, July 24, 10:30 a.m. – The House Financial Services Committee holds a hearing on "Housing Solutions: Cutting Through Government Red Tape."

 

·       Thursday, July 25, 8:30 a.m. – The House Agriculture Commodity Markets, Digital Assets, and Rural Development Subcommittee holds a hearing on "Reauthorizing the CFTC: Stakeholder Perspectives."

 

US Regulatory Meetings & Events

Federal Reserve Board and Federal Reserve Banks

·       There are no significant events scheduled at this time.

U.S. Treasury Department

·       There are no significant events scheduled at this time.

 

Securities and Exchange Commission

·       Thursday, July 25, 12:00 p.m. – The Securities and Exchange Commission Office of Minority and Women Inclusion holds a virtual discussion with SEC Chair Gary Gensler.

 

Commodities Futures Trading Commission

· Tuesday, July 23, 9:30 a.m. – CFTC Commissioner Kristin N. Johnson will deliver the keynote address at the USDA Advisory Committee in Tarrytown, New York.

 

FINRA

·       There are no significant events scheduled at this time.

Federal Deposit Insurance Corporation

·       Wednesday, July 24, 2:00 p.m. – FDIC Vice Chair Travis Hill will speak at the American Enterprise Institute for Public Policy Research discussion on "Proposed Changes in Bank Regulatory and Resolution Policies."  

 

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.

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

 

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

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

 

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.

Read More
Francis Kelly Francis Kelly

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

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

Commodities 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

The Federal Financial Institutions Examination Council

International Monetary Fund & World Bank

North American Securities Administrators Association

  • There are no significant events scheduled at this time.

Trade Associations & Think Tank Events

Trade Associations

Think Tanks and Other Events

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.