Washington Report 360 | October 4, 2019

Key highlights

• FRB will vote on October 10 on the final rule for prudential standards and resolution plans for large domestic and foreign banks as well as a proposed rule on large bank supervisory assessments.
• OCC released its FY2020 supervision plan with continued policy and supervisory focus on cybersecurity and operational resilience, BSA/AML compliance, credit practices, CECL and LIBOR preparedness, and technology innovation and implementation.
• Cloud service risks highlighted in recent news and FINRA notice.

Financial services legislative and regulatory news

Banking

• FRB expected to finalize prudential standards and resolution plan requirements for large domestic and foreign banking organizations 
  FRB, October 3, 2019
  
  
• OCC released bank supervision operating plan for FY 2020
  OCC, October 1, 2019
  
  
• Agencies updated the major asset prohibition thresholds in the management interlocks rule
  FRB, OCC, FDIC, July 26, 2019
  
  
• CFPB Report: General information about background screening industry and reporting 
  CFPB, October 2, 2019
  
  
• OCC Report: Mortgage Metrics, second quarter 2019
  Results show slightly improved performance and 28 % decline in foreclosures since 2018
  OCC, September 30, 2019
  
  
• OCC issued final rule revising the stress testing threshold to $250 billion
  OCC, October 2, 2019

Capital Markets

• FINRA issued a notice on cybersecurity threats in cloud-based email accounts 
  FINRA, October 2, 2019
  
  
• CFTC enforcement action highlights focus on swap dealer risk management regulations 
  CFTC, October 1, 2019
  
  
• SEC proposed fee amendments to NMS Plans be subject to notice and comment
  SEC, October 1, 2019
  
  
• FINRA published second annual statistical report on the industry
  FINRA, October 2, 2019

Other

• FHFA instructed FHLBanks to stop purchasing certain assets tied to LIBOR
  FHFA, September 27, 2019
  
  
• FHFA to permit GSEs to increase capital retention and commits to amend share agreements
  FHFA, September 30, 2019
  
  
• FTC Data Spotlight Report: Millennials more likely to report fraud losses
  FTC, October 1, 2019
  
  
• Basel Committee published latest results from Basel III monitoring exercise
  BIS, October 2, 2019
  
  
• New York State Officials Open Probe on 403(b) Sales to Teachers
  WSJ, October 2, 2019

Industry news

• Fed Expected to Give Large Banks a Break on Post-Crisis Rules
  WSJ, October 3, 2019
  
  
• Does Amazon-Google-Microsoft hold on the cloud pose a risk to banking?
  American Banker, September 30, 2019
  
  
• California governor signs law permitting public banks
  Los Angeles Times, October 2, 2019
  
  
• Federal government has dramatically expanded exposure to risky mortgages
  Washington Post, October 2, 2019
  
  
• The Seven-Year Auto Loan: America’s Middle Class Can’t Afford Its Cars
  WSJ, October 3, 2019
  
  
• Visa, Mastercard, Others Reconsider Involvement in Facebook's Libra Network
  WSJ, October 2, 2019
  
  
• U.S. online privacy rules unlikely this year, hurting big tech
  Reuters, September 30, 2019
  
  
• Kraninger's stance on CFPB constitutionality puts rules in limbo
  American Banker, October 2, 2019