Washington Report 360 | November 15, 2019

Key highlights

• OCC indicated it may propose CRA reform ahead of the other banking agencies and the FRB stated they are working toward a joint rule or “common answer.”
• The New York Fed’s Quarterly Report on Household Debt and Credit found that total household debt has increased for 21 consecutive quarters and has reached an all-time high; other related regulatory reports include three FDIC studies on nonbank lending and reports from the CFPB and FINRA on the financial well-being of customers.
• FTC is reportedly expanding its inquiries related to competition in the marketplace by reviewing debit card transactions and routing restrictions for certain electronic payments providors and large debit card issuers.
• California and New Jersey are taking steps to establish public banking.

Financial services legislative and regulatory news

Banking

• OCC may propose CRA reform before other banking agencies
  FRB Powell says Fed focused on a joint CRA plan
  American Banker, November 12 and 13, 2019
  
  
• FRB proposed to extend SCCL compliance for FBOs
  FRB, November 8, 2019
  
  
• CFPB Report | Financial well-being by state
  CFPB, November 13, 2019
  
  
• FDIC published three reports analyzing nonbank lending increases
  FDIC, November 14, 2019
  
  
• FFIEC published new IT Examination Handbook on Business Continuity Management
  FFIEC, November 14, 2019

Capital Markets

• SEC issued a Risk Alert on weaknesses identified in exams of investment companies
  SEC, OCIE, November 7, 2019
  
  
• FINRA proposed to limit a registered person from being named a customer's beneficiary or holding a position of trust for or on behalf of a customer
  FINRA, November 11, 2019
  
  
• FINRA announced new research on financial well-being of U.S. military veterans
  FINRA, November 11, 2019

Insurance

• FSB published final framework for systemic risk in the insurance sector  
  FSB, November 14, 2019
  
  
• FRB Quarles remarks on "Supervision in a Digital Era" at IAIS conference 
  FRB, November 14, 2019

Other

• NY Fed released the Quarterly Report on Household Debt and Credit
  New York Federal Reserve Bank, November 13, 2019
  
  
• NY Fed speech | Financial institution culture initiatives
  New York Federal Reserve Bank, November 14, 2019
  
  
• NY DFS proposed streamlined disclosure processes for legal counsel, independent auditors
  New York Department of Financial Services, November 14, 2019
  
  
• FSB Report | 2019 Resolution Report (covering central counterparties, banks, and insurance)
  FSB, November 14, 2019
  
  
• FinCEN reissued real estate geographic targeting orders for 12 metro areas
  Financial Crimes Enforcement Network, November 8, 2019

Industry news

• FTC reportedly probing debit card transactions and routing restrictions
  American Banker, November 13, 2019
  
  
• NJ governor appointing board to explore public banking
  NJSpotlight, November 13, 2019
  
  
• San Francisco sets timeline for launching public bank 
  San Francisco Business Journal, November 13, 2019
  
  
• Banks Test Cyber Response Plans in Global Exercise
  WSJ, November 13, 2019
  
  
• Bank M&A: Pace up, premiums down
  American Banker, November 11, 2019
  
  
• Selloff in Complex Investments Flashes Warning for Junk Bonds (re: CLOs)
  WSJ, November 11, 2019
  
  
• Big banks want to make it easier to share consumer data with startups
  American Banker, November 14, 2019