Washington Report 360 | September 13, 2019

Key Highlights

• FHFA outlined plans for housing finance reforms, including means for the GSEs to build capital and exit conservatorship.  At a Senate hearing, the Treasury Secretary said the GSEs might avoid a SIFI designation with sufficient levels of capital.
• SEC is proposing to impose financial penalties on SROs for failing to implement CAT on a timely basis.
• Seven states and the District of Columbia have filed suit against the SEC challenging the agency’s Regulation Best Interest.
• Cross-industry pressure for a federal data privacy law is building.

Financial services regulatory and policy news

Banking

• CFPB is taking a "fresh look" at supervision and partnering with other agencies
  Bloomberg Law, September 9, 2019
• CFPB issued three new policies to promote innovation and facilitate compliance
  CFPB, September 10, 2019
• CFPB launched an Innovation Network with multiple states 
  CFPB, September 10, 2019
• FFIEC members encourage standardized approach for assessing cybersecurity preparedness
  FFIEC, August 28, 2019
• Michelle Bowman confirmed to 14-year term on the Federal Reserve Board
  American Banker, September 13, 2019

Capital Markets

• SEC proposes changes to the CAT NMS Plan to promote timely implementation 
  SEC, September 9, 2019
• SEC Chair statement on status of CAT
  SEC, September 9, 2019
• Seven States and the District of Columbia Sue SEC on Regulation BI
  WSJ, September 9, 2019
• SEC OCIE issued a Risk Alert highlighting principal trading and agency cross transactions in investment adviser exams  
  SEC Office of Compliance Inspections and Examinations, September 4, 2019
• SEC Chair says progress is being made toward permitting a cryptocurrency-based ETF
  ETF Trends, CNBC Interview, September 11, 2019
• State securities regulators find rising cybersecurity deficiencies at investment advisors
  North American Securities Administrators Association, September 8, 2019

Other

• Treasury says GSEs could avoid SIFI designation with sufficient capital
  S&P Global, September 10, 2019
• FHFA's Calabria details next steps on GSE reform
  American Banker, September 12, 2019
• Fifth Circuit Court of Appeals finds FHFA leadership structure unconstitutional
  Reuters, September 9, 2019
• Houses passes five financial services bills that will now move to the Senate
  House Financial Services Committee, September 10, 2019

Industry news

• 51 CEOs send an open letter to Congress asking for a comprehensive consumer data privacy law
  ZDNet, September 10, 2019
• Companies Considering Magazine Subscriptions and Phone Bills When Making Loans
  WSJ, September 12, 2019
• Throw your old data analytics out the window - new ways to segment customers
  American Banker, September 11, 2019
• Residential real-estate firms are moving into mortgages and insurance offerings
  WSJ, September 10, 2019