Key Highlights
- The Administration has removed the head of the FHFA and appointed an Acting Director following a Supreme Court decision that the agency was structured unconstitutionally; the Administration has indicated GSE privatization is not a current priority.
- SEC is considering proposed rules for mandatory company disclosures on climate risk, including a range of specific metrics, such as greenhouse gas emissions, and potential requirements for companies that have made forward-looking climate commitments, or that have significant operations in jurisdictions with national requirements to achieve specific, climate-related targets.
- The House of Representatives passed a resolution under the Congressional Review Act to repeal the OCC’s “True Lender” rule; the Senate passed a similar resolution in May 2021.
- IAIS released application papers addressing supervision of the insurance sector, including two consultations covering “insurer culture” and “supervisory colleges” and two final paper covering “supervision of control functions” and “resolution powers and planning”.
Financial services regulatory and policy news
Banking
- Federal banking agencies (FRB, OCC, FDIC):
- Each released updated sections of the FFIEC BSA/AML Examination Manual (here, here, and here)
- FRB:
- Announced that all banks subject to the annual stress tests passed; restrictions on dividend payments and share repurchases will be lifted after June 30
- Extended the comment period for proposed changes to Regulation II (Debit Card Interchange Fees and Routing)
- Spoke about building economic resilience in communities; announced the Fed Listens initiative will continue in 2021
- OCC:
- Released a statement on the House vote to overturn its "True Lender” Rule
- FDIC:
- Will host a virtual conference on financial technology and economic inclusion
- CFPB:
- Updated its report on housing insecurity risks
Capital Markets
- SEC:
- Outlined new ESG-related disclosures and other rulemakings under consideration
- Spoke about whether the agency can make ESG rules that are sustainable
CFTC:
- Issued an advisory to swap dealers clarifying the use of internal models in calculating minimum capital requirements
- FINRA:
- Issued a notice reminding members of existing rules governing best execution and payment for order flow
Other
- House:
- Passed a resolution to repeal the OCC’s “True Lender” rule
- Select Committee on the Coronavirus Crisis held a hearing on the Federal Reserve’s response to the COVID-19 pandemic; Related testimony here
- Treasury:
- Released guidance to accelerate the provision of emergency rental assistance relief and support housing stability for renters at risk of eviction
- BIS:
- Provided early release of part of its Annual Economic Report covering CBDCs
- SBA:
- Restored the Council on Underserved Communities to address “immediate concerns of underserved or underrepresented communities” impacted by COVID-19
- FHFA:
- Extended the COVID-19 foreclosure and REO eviction moratoriums until July 31, 2021
- Released its Q1 2021 Foreclosure Prevention and Refinance Report
- NYFRB:
- Conducted an examination of cybercrime and supply chain disruptions
Insurance
- IAIS:
- Published four papers in support of practical application of supervisory practices
Industry news headlines
(Some links may require subscription)
- CFPB to adopt mortgage moratorium rule with some exclusions - sources (Reuters)
- P2P payments surged during pandemic. So did the complaints about them (American Banker)
- Basel's crypto capital plan could boost banks' interest in stablecoins (American Banker)
- Biden Administration Removes Fannie, Freddie Overseer After Court Ruling (WSJ)
- Fintech listing surge on Wall Street as smartphones proliferate (Roll Call)
- SEC Wants More Climate Disclosures. Businesses Are Preparing for a Fight. (WSJ)
- FedAccounts billed as gift to bankers. Many are dubious. (American Banker)
- Basel's crypto capital plan could boost banks' interest in stablecoins (American Banker)
- Community banks rush to meet customer demand for bitcoin (American Banker)
