Washington Report 360 | June 15, 2018
Washington Report 360 | June 15, 2018
Insight

Washington Report 360 | June 15, 2018

In this issue....

Key highlights

  • The Federal Reserve Board has approved its final rule implementing single-counterparty credit limits for large U.S. banking holding companies and foreign banking organizations.
  • Comptroller of the Currency Joseph Otting testified before the House Financial Services Committee on OCC priorities, including CRA and BSA. He also noted no systemic or pervasive problems related to improper account opening activity for the more than 40 institutions reviewed by the OCC.
  • The federal banking agencies issued a policy statement on interagency notification of formal enforcement actions.

Financial services legislative and regulatory news

The Federal Reserve Board approved its final rule implementing single-counterparty credit limits for U.S. BHCs and FBOs with $250 billion or more in total assets; the rule applies stricter limits based on the size of a firm.

FINRA proposed to extend to July 18, 2019 FINRA Rule 4240, which implements an interim pilot program related to margins for certain security-based credit default swaps.

The CFPB issued a report on seasonal credit card borrowing as part of a series of quarterly reports on consumer credit trends.

The FHFA proposed a new framework for risk-based capital requirements and a revised minimum leverage capital requirement for Fannie Mae and Freddie Mac; these requirements would be applicable when the GSEs emerge from conservatorship.

Financial services policy news

Comptroller of the Currency Joseph Otting testified on OCC priorities, including modernization of the Community Reinvestment Act, updates to the Bank Secrecy Act, short-term small-dollar lending, and fintech charters. Comptroller Otting also commented on the results of a horizontal review that indicated no systemic or pervasive problems related to improper account opening activity among the more than 40 institutions reviewed.

The federal banking agencies issued a policy statement on interagency notification of formal enforcement action.

The Senate Banking Committee sent the Federal Reserve nominations of Richard Clarida as vice chairman and Michelle Bowman as a governor to the full Senate for consideration.

FinCEN issued an advisory on the risks to the U.S. and international financial systems by financial facilitators that assist corrupt foreign political figures in illegal activity.

The SEC created a new position that will coordinate SEC efforts around digital asset technologies and innovations.

The CFPB has changed its building signage to reflect the statutory name of the Bureau, which is the Bureau of Consumer Financial Protection or BCFP.