Washington Report 360 | December 20, 2019

Key Highlights

• The FRB and FDIC found no “deficiencies” in resolution plans of the eight largest banking entities but did find “shortcomings” for six entities.
• The SEC adopted a package of rule amendments, guidance, and a related order addressing the regulatory framework for cross-border security-based swaps. The adoption of this package triggers the compliance date for security-based swap entities to register with the Commission.
• DOJ announced a new Export Controls and Sanctions Enforcement Policy that clarifies the benefits of voluntary self-disclosure of related violations as well as consequences of not reporting.

Financial services regulatory and policy news

Banking

• FRB, FDIC found no "deficiencies" in resolution plans but "shortcomings" for six entities
  FRB, FDIC, December 17, 2019
• FRB extended the comment period on capital requirements for certain insurance holding companies
  FRB, December 13, 2019
• FRB Governor Brainard provided update on challenges of digital currencies and stablecoins 
  FRB, December 18, 2019
• FRB announced "fintech innovation office hours"
  FRB, December 17, 2019
• FRB published its Consumer Compliance Supervision Bulletin with observations on fintech technology
  FRB, December 17 2019
• FRB, OCC, FDIC announced availability of 2018 small business, small farm, and community development lending data 
  OCC, December 16, 2019
• NY FRB published its Credit Access Survey showing slight increase in mortgage application and approval rates
  New York Federal Reserve Bank, December 16, 2019

Capital Markets

• SEC adopted a package of rule amendments, guidance, and a related order related to the regulatory framework for cross-border security-based swaps
  SEC, December 18, 2019
• SEC approved rules requiring risk mitigation techniques for uncleared security-based swaps
  SEC, December 18, 2019
• SEC proposed revisions to the definition of "accredited investor" to increase access
  SEC, December 18, 2019
• SEC proposed disclosure rules for commercial development of oil, natural gas, or minerals
  SEC, December 18, 2019
• Three CFTC divisions announced no-action relief for LIBOR transition
  CFTC, December 18, 2019
• IOSCO consulted on measures to reduce conflicts of interest in debt capital raising
  International Organization of Securities Commissions, December 16, 2019
• IOSCO launched framework for monitoring leverage in funds that may pose stability risks
  International Organization of Securities Commissions, December 13, 2019

Other

• DOJ announced new Export Controls and Sanctions Enforcement policy with added clarity on voluntary self-disclosure
  Department of Justice, December 13, 2019
• House passed the SECURE Act as part of an appropriations bill; changes retirement savings for workers
  CNBC, December 17, 2019
• FHFA proposed increasing its stress test threshold to $250 billion and exempting FHLBs
  FHFA, Federal Register, December 16, 2019

Industry news

• COSO issues blueprint for managing cyber risks of digital age
  WSJ, December 17, 2019
• Proposed reclassification of brokered deposits could help tech firms advance into banking
  WSJ, December 15, 2019
• Venmo Glitch Opens Window on War Between Banks, Fintech Firms  
  WSJ, December 14, 2019
• Banks’ Demand for Fed Liquidity Softens After Some Modest Short-Term Rate Pressure
  WSJ, December 18, 2019