Washington Report 360 | April 5, 2019

Key highlights

• The federal banking agencies proposed changes related to TLAC debt.
• The FDIC proposed revisions to Parts 370 and 330.
• The SEC published a framework for evaluating digital assets.
• The Federal Reserve will consider proposed prudential standards for foreign banking organizations and proposed requirements for resolution plans next week.
• Mark Calabria was confirmed as Director of the FHFA.

Financial services legislative and regulatory news

The federal banking agencies:

• Proposed changes to the regulatory capital treatment and reporting requirements for holdings of Total Loss Absorbing Capacity (TLAC) debt by GSIBs and “advanced approaches” banking organizations.
• Issued, along with the NCUA, updates to frequently asked questions on the current expected credit losses (CECL) methodology. 

FASB rejected a proposal from regional banks to modify CECL provisions.

The FDIC:

• Proposed to revise Part 370, Recordkeeping for Timely Deposit Insurance Determination, including an optional one year compliance extension.
• Proposed to amend the signature card requirements for certain joint accounts under Part 330.
• Published guidance on contracts with technology service providers, highlighting business continuity and incident response risks.

The Federal Reserve:

• Approved a final rule amending its Payment System Risk Policy governing intraday credit.
• Outlined U.S. and international frameworks for the countercyclical capital buffer.
• Will consider proposed rules on prudential standards for foreign banking organizations and resolution plan requirements for foreign and domestic banking organizations next week.

The CFPB published the 2018 HMDA Modified Loan Application Registers and will publish a loan level dataset, aggregate and disclosure reports, and trends analyses later this year.

FINRA proposes to expand the collection and dissemination of new-issue reference data for corporate bonds.

The House Financial Services Committee conducted hearings on the Fair Housing Act, affordable housing, and public company executives’ accountability; the Committee will conduct a hearing on the Community Reinvestment Act next week. The Senate Banking Committee heard testimony on asset managers and environmental, social, and governance (ESG) principles.

Ongoing attention to retirement-related issues: a bill to increase the minimum age for required distributions passed out of a House committee and a companion bill was introduced in the Senate.

Financial services policy news

The Senate confirmed Mark Calabria to a five-year term as Director of the Federal Housing Finance Agency.

Allison Lee was nominated to serve on the SEC; Michelle Bowman has been nominated for reappointment to the Fed Board.

Maryann Kennedy has been named the OCC’s senior deputy comptroller for large-bank supervision.

The SEC published a framework for analyzing digital assets.

The OCC Comptroller and FDIC chair indicated support for interagency action on small-dollar lending and completion of CRA reforms. (American Banker)