Insight

Washington Report 360 | December 7, 2018

In this issue....

Key highlights

  • The U.S. Senate confirmed Kathy Kraninger to serve a five-year term as Director of the CFPB by a vote of 50-49. 
  • The OCC issued its Semiannual Risk Perspective for Fall 2018 highlighting credit, operational, compliance, and interest rate risks.
  • FinCEN and the national bank regulators encouraged banks and credit unions “to consider, evaluate, and, where appropriate, responsibly implement innovative approaches” to meet their BSA/AML compliance obligations.
  • The Federal Reserve is nearing an agreement with FINRA to collect Treasury transaction data from certain banks.

Financial services legislative and regulatory news

The U.S. Senate confirmed Kathy Kraninger to serve a five-year term as Director of the CFPB by a 50-49 vote.

Federal Reserve governor Brainard stated the agency is nearing an agreement with FINRA to expand the collection of Treasury transaction data to certain “key banks,” and plans to propose a rule on collecting data for agency mortgage-backed securities and debt transactions.

The SEC adopted a safe harbor rule for brokers or dealers to publish or distribute research reports on investment funds.

The CFTC proposed to revise its annual privacy notice requirements to grant new exceptions for “covered persons” meeting certain conditions.

The CFTC issued an amended order that will allow four additional EU multilateral trading facilities to be exempted from requirements to register as swap execution facilities.

Financial services policy news

FinCEN and federal depository institution regulators issued a joint statement to encourage banks and credit unions “to consider, evaluate, and, where appropriate, responsibly implement innovative approaches” to meet their BSA/AML compliance obligations.

The OCC issued its Semiannual Risk Perspective for Fall 2018 highlighting credit, operational, compliance, and interest rate risks as the key risks facing the federal banking system.

The U.S. Department of the Treasury released a Task Force report on the United States Postal System, which includes a recommendation that the post office not pursue postal banking.

CFTC Chair Christopher Giancarlo discussed a new CFTC study that describes a complex "liquidity hierarchy" in the U.S. Treasury market.

The CFPB released its 2017 Fair Lending Report highlighting mortgage and small business lending as well as innovation in expanding credit access.

The Basel Committee published a report summarizing key findings on current practices, challenges, and initiatives to enhance cyber-resilience.

The Group of Thirty published a report, Banking conduct and culture, highlighting “slow progress and uneven results,” industry learnings, and recommendations to focus additional efforts.

The CFTC's Market Risk Advisory Committee meeting focused on central clearinghouse governance and risk management, recovery and resolution, global standard setting bodies and prudential regulators, and third-party risk management.

Treasury announced that the Canada-Mexico-United States Financial Regulatory Forum has been established; the countries will share information and views on cross-border issues, emerging industry developments, financial stability risks, and regulatory practices.