Key Highlights
- FRB stress test scenarios include a shock to leveraged loan exposures reinforcing attention to leveraged lending.
- Treasury released a report on the U.S. AML/CFT framework, highlighting the need for legislative proposals on beneficial ownership.
- Fannie Mae and Freddie Mac will cease to purchase LIBOR ARMs on or before year end 2020.
- Focus on risk management, including COSO report on ERM and NYC Bar report on CCOs.
Financial services regulatory and policy news
Banking
- FRB released hypothetical scenarios for 2020 stress tests
FRB, February 6, 2020 - U.S. bank supervisor sees weaknesses in compliance with due diligence rule - OCC and beneficial ownership
WSJ, February 6, 2020 - Agencies’ SNC review highlighted continued elevated risks in leveraged lending
FRB, OCC, FDIC, January 31, 2020 - CFPB signed MOU with Department of education re: student loan borrowers
CFPB, February 3, 2020 - CFPB released its Semi-Annual Report (Fall 2019)
CFPB, February 3, 2020 - FRB discussed the digitalization of payments and currency
FRB, February 5, 2020
Capital Markets
- SEC outlined possible regulatory framework for digital assets
SEC, February 6, 2020 - Proposed rule change to eliminate transaction credits and trade reporting fees applicable to retail participants using FINRA/Nasdaq trade reporting facility
FINRA, February 3, 2020
Other
- Treasury announced national strategy to modernize the U.S. AML/CFT regime
Treasury, Office of Terrorist Financing and Financial Crimes, February 6, 2020 - FHFA announced Fannie Mae and Freddie Mac update on LIBOR transition
Federal Housing Finance Agency, February 5, 2020 - FHFA proposed updated requirements for Fannie Mae and Freddie Mac seller/servicers
Federal Housing Finance Agency, January 31, 2020 - ARRC published vendor survey and buy-side checklist for transition to SOFR
New York Federal Reserve Bank, ARRC, January 31, 2020 - NY Governor announced legislation addressing elder financial exploitation
New York State, Department of Financial Services, February 3, 2020 - COSO research paper | Understanding and Implementing Enterprise Risk Management
- COSO Warns of the Downside of Siloing risk managers
COSO, WSJ, February 4, 2020 - BIS paper | Convergence in the prudential regulation of banks - what is missing?
BIS, Financial Stability Institute, February 4, 2020 - FSB outlined the LEI for Identification in digital processes
Financial Stability Board, February 4, 2020
Industry news
- Why payments are a bright spot for dealmakers
WSJ, February 4, 2020 - Home-Loan banks may soon channel funds to more mortgage players
WSJ, February 4, 2020 - The fight over CRA reform just got more complicated
American Banker, February 4, 2020 - U.S. banks on high alert as coronavirus spreads
American Banker, February 5, 2020 - DOJ Criminal Division delivered remarks on approach to "justice in cyberspace"
DOJ, February 5, 2020 - Chief Compliance Officer liability in the financial sector
NYC Bar, February 4, 2020
