Washington Report 360 | April 12, 2019
Washington Report 360 | April 12, 2019
Insight

Washington Report 360 | April 12, 2019

Federal banking agencies proposed rules to tailor prudential standards and capital and liquidity requirements for FBOs.

Key highlights

  • The federal banking agencies proposed rules to tailor prudential standards and capital and liquidity requirements for foreign banking organizations.
  • The Federal Reserve and FDIC proposed to change the resolution planning framework for domestic and foreign institutions.
  • The FTC conducted two days of hearings on consumer data privacy.
  • Seven GSIB Chairs provided testimony to the House Financial Services Committee on multiple issues, including leveraged lending, student debt, risk management, diversity, and compensation.
  • The Administration issued a memorandum indicating guidance documents, general statements of policy, and interpretive rules issued by independent agencies (including the Federal Reserve, SEC, and FTC) are subject to the Congressional Review Act.

Financial services legislative and regulatory news

The federal banking agencies proposed rules to tailor enhanced prudential standards and capital and liquidity requirements for foreign banking organizations based on the size and risk of their U.S. presence.

The Federal Reserve and the FDIC proposed amendments to the resolution planning requirement for domestic and foreign banking organizations. Separately, the FDIC will host an event on cross-border resolution planning for U.S., E.U., and U.K. regulators.

The Administration issued a memorandum indicating guidance documents, general statements of policy, and interpretive rules issued by independent agencies (including the Federal Reserve, SEC, and FTC) are subject to the Congressional Review Act.

The House Financial Services Committee conducted hearings on the Community Reinvestment Act and GSIBs. The  GSIB witnesses provided testimony on a range of issues including Brexit, leveraged lending, student debt, shadow banking, risk management/”too-big-to-fail”, weapons-related businesses, data security, diversity, and compensation.

The FTC conducted two days of hearings on consumer data privacy issues as part of a series on competition and consumer protection.

NASDAQ proposed permitting small-cap companies to opt out of Regulation NMS obligations and eliminate the Order Protection Rule for small markets. (Investor’s Business Daily)

The FSB published a directory of crypto-asset regulators.

Financial services policy news

The CFPB released reports on:

  • Diversity and Inclusion (annual report to Congress).
  • Financial well-being of veterans (Office of Servicemembers Affairs).

FINRA issued:

BIS released a working paper examining the growth of “BigTech” in financial services.

The FSB Chair stated the transition away from LIBOR must accelerate and that regulators expect the private sector to take on this responsibility.

IOSCO published guidance to regulators about the impact of behavioral biases on retail investor protection.

The Federal Reserve is seeking input from risk managers, academics and policymakers to establish a common way to classify and model cyber risk. (Risk.net)

Ongoing attention to risk management – asset managers are focusing their voting policies on transparency and corporate oversight, including board governance, diversity, and compensation. (WSJ)

Upcoming meetings: SEC Fixed Income Structure Advisory Committee, CFTC Global Markets Advisory Committee, FDIC Board of Directors, and Treasury Federal Advisory Committee on Insurance.