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.”  

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

U.S. Regulatory Week Ahead

August 14 - 18, 2023

First, a quick note on a slight change to our Regulatory Week Ahead.  Starting with this issue, we will include coverage of the two U.S. antitrust enforcers – the Federal Trade Commission and the Department of Justice Antitrust Division.  With DoJ’s Assistant Attorney General for Antitrust Jonathan Kanter’s recent speech at the Brookings Institution on “Promoting Competition in Banking,”  it is clear two new regulators have moved into the financial regulatory space. 

Now back to our usual previewing of the coming week:  It may still be the dog days of summer in Washington, but there is one big event next week.  FDIC Chair Marty Gruenberg will give a speech at the Brookings Institution on “lessons learned” from the resolution of regional banks – a direct reference to the recent collapse of Silicon Valley Bank and the closing of Commonwealth Bank in New York.  Banks will watch his speech closely for greater insight into FDIC policy – and perhaps comments about the banking regulators’ newly proposed capital requirements.  You can watch it online (link below).

Otherwise, there are no public speeches by senior regulators and no open meetings or rule proposals.  It is all quiet.  But if you have any questions, please let us know.  We hope you are enjoying your August!

U.S. Congressional Hearings 

• Congress is out of session for the month of August.  The Senate returns on September 5th, and the House of Representatives on September 11th.

US Regulatory Meetings & Events

• Monday, August 14, 2023 – 2:00 – 3:00 p.m.: FDIC Chair Martin Gruenberg speaks at the Brookings Institution on “The resolution of large regional banks and lessons learned.”  You can watch the speech online by clicking HERE.

• Thursday, August 17, 2023 – 2:30 p.m.: The U.S. Securities and Exchange Commission will hold a closed meeting.

• Friday, August 18, 2023 – 9:00 a.m. – 4:00 p.m.: The FDIC and Georgia Coalition of Black Chambers Host the Georgia Access to Capital Summit: Building an Inclusive Business Landscape for Under-Resourced Small Businesses at the Bibb County Professional Learning Center, Macon, Georgia

Think Tank Events 

• Nothing of note is scheduled at this point for next week.

Please let us know if you have any questions.

Fulcrum Macro’s Global & U.S. Summer Overview

We are happy to share our latest macro overview of key geopolitical issues along with an update on the Washington agenda and upcoming U.S. Elections. Please let us know if you have any questions - always happy to help!

Committee Chairs for the 118th US House of Representatives

We thought we would quickly share who will chair the new committee chairs for the new US House of Representatives. There are not a lot of surprises here, as most observers expected these choices. But what will be interesting to watch is how effective each committee chair will be — especially Appropriations, Budget, Armed Services, and Rule. At this point, Speaker Kevin McCarthy (R-CA) has not fully revealed what concessions he made to the dissident Republican members who fought his election as Speaker last week. There is, according to McCarthy, no actual written document of the concessions but, instead, “a handshake agreement.” Therefore, it is unclear at this point how those “handshake agreements” may impact the agendas of the various committees.

Agriculture: Rep. Glenn Thompson (R-PA)

- Ranking member: Rep. David Scott (D-GA)

Appropriations: Rep. Kay Granger (R-TX)

- Ranking member: Rep. Rosa DeLauro (D-CT)

Armed Services: Rep. Mike Rogers (R-AL)

- Ranking member: Rep. Adam Smith (D-WA)

Budget: Rep. Jodey Arrington (R-TX)

- Ranking member: Rep. Brendan Boyle (D-PA)

Education and the Workforce: Rep. Virginia Foxx (R-NC)

- Ranking member: Rep. Bobby Scott (D-VA)

Energy and Commerce: Rep. Cathy McMorris Rodgers (R-WA)

- Ranking member: Rep. Frank Pallone (D-NJ)

Financial Services: Rep. Patrick McHenry (R-NC)

- Ranking member: Rep. Maxine Waters (D-CA)

Foreign Affairs: Rep. Michael McCaul (R-TX)

- Ranking member: Rep. Gregory Meeks (D-NY)

Homeland Security: Rep. Mark Green (R-TN)

- Ranking member: Rep. Bennie Thompson (D-MS)

Judiciary: Rep. Jim Jordan (R-OH)

- Ranking member: Rep. Jerrold Nadler (D-NY)

Natural Resources: Rep. Bruce Westerman (R-AR)

- Ranking member: Rep. Raul Grijalva (D-AZ)

Oversight and Accountability: Rep. James Comer (R-KY)

- Ranking member: Jamie Raskin (D-MD)

Rules: Rep. Tom Cole (R-OK)

- Ranking member: Jim McGovern (D-MA)

Science, Space, and Technology: Rep. Frank Lucas (R-OK)

- Ranking member: Rep. Zoe Lofgren (D-CA)

Small Business: Rep. Roger Williams (R-TX)

- Ranking member: Rep. Nydia Velasquez (D-NY)

Transportation and Infrastructure: Rep. Sam Graves (R-MO)

- Ranking member: Rep. Rick Larsen (D-WA)

Veterans Affairs: Rep. Mike Bost (R-IL)

- Ranking member: Rep. Mark Takano (D-CA)

Ways and Means: Rep. Jason Smith (R-MO)

- Ranking member: Rep. Richard Neal (D-MA)