Washington Report 360 | January 10, 2020

Key Highlights

• The FRB encouraged public comment on an approach to reform of the CRA implementing regulations outlined in a speech; an interagency standard remains the goal.
• FINRA released its 2020 risk monitoring and examination priorities.
• Continued regulatory concern over LIBOR transition seen as banking regulators seek evidence of institutions’ preparation.
• Heightened concern for cyber threats against financial institutions (NY DFS statement, Congressional letter).

Financial services regulatory and policy news

Banking

• FRB outlined its approach to revising the CRA implementing regulations
  FRB, January 8, 2020
• OCC proposed rules covering employment contracts, mutual-to-stock conversions, and technical amendments
  OCC, January 8, 2020
• CFPB announced membership in its Taskforce on Federal Consumer Financial Law, which will recommend improvements to laws and regs
  CFPB, January 9, 2020

Capital Markets

• FINRA released its 2020 risk monitoring and examination priorities
  FINRA, January 9, 2020
• SEC proposed updates to the governance structure of national market system plans for equity market data
  SEC, January 8, 2020
• Regulators Seek to Loosen U.S. Exchanges’ Control Over Stock Data (re: SEC proposal)
  WSJ, January 8, 2020
• CFTC clarified its Advisory on 2019 annual compliance reporting requirements 
  CFTC, January 3, 2020
• CFTC issued a supplemental no-action letter on error correction processes 
  CFTC, January 8, 2020
• FINRA provided highlights of its Regulation Best Interest conference
  FINRA, January 8, 2020
• FINRA sought comment on the effectiveness and efficiency of its Reporting Requirements rule
  FINRA, January 9, 2020

Other

• House banking panel to hold two hearings this month on CRA reform plan
  American Banker, House Financial Services Committee, January 6, 2020
• NY DFS issued an alert concerning heightened risk of cyber attacks
  New York State, Department of Financial Services, January 4, 2020
• Should banks expect cyberattacks from Iran?
  American Banker, January 7, 2020
• House Democrats urge financial regulators to defend against Iranian cyberattacks
  The Hill, January 8, 2020
• HUD proposed revisions to its Affirmatively Furthering Fair Housing rule
  HUD, January 7, 2020

Industry news

• What's the Fed's next move on CRA reform?
  American Banker, January 3, 2020
• Regulators Ask Banks About Preparations for Libor’s Demise
  WSJ, January 3, 2020
• Banks Taking a Closer Look at ESG Risks in Credit Underwriting  
  WSJ, January 7, 2020
• Few Bank Failures Could Be a Warning Sign for U.S. Financial  System  
  WSJ, January 5, 2020
• Use AI for Picking Stocks? Not So Fast  
  WSJ, January 5, 2020
• Corporate Payments in 2020: Nine Things Corporate Treasurers Can Expect
  Payments Journal, January 2, 2020
• The battle for big data, growing incursions from fintechs, outsized peril for small banks
  American Banker, January 2020
• Big Banks Seek Less Liquidity From Fed Amid Stable Money-Market Rates  
  WSJ, January 8, 2020