Key Highlights
- Russia-Ukraine war risks. The Administration and OFAC announced that the U.S. and other countries agreed to expanded sanctions and controls against Russia entities and individuals; the Administration warned of cybersecurity risks. (See KPMG Regulatory Alert)
- Climate risk. The SEC proposed rules that would require companies to disclose climate-related risk information including financial impacts, progress toward commitments and targets, risk management and governance, greenhouse gas emissions, and financial statement metrics. (See KPMG Regulatory Alert)
- Mergers. Following an Executive Order that directed the federal banking agencies to review oversight of bank merger transactions, the FDIC has published a Request for Information seeking input on all aspects of the regulatory framework for merger transactions (laws, practices, rules, regulations, guidance, and policy).
- Fairness. Thirteen agencies (including FRB, OCC, FDIC, CFPB, HUD, FHFA, NCUA) jointly released a final report on racial and ethnic biases in home valuations, providing an action plan with recommendations to address areas such as automated models (AVMs), data, and technology innovations.
Financial services regulatory and policy news
Banking
- Interagency:
- FRB, OCC, FDIC, NCUA: Issued a proposal to update policies and procedures governing administrative proceedings for supervised institutions
- Interagency Task Force on Property Appraisal and Valuation Equity (PAVE): Released an action plan to address racial and ethnic bias in home valuations; associated CFPB and OCC statements here and here
- FRB:
- Announced an extension of the comment period for proposal to implement a supervision framework for insurance underwriting companies
- FDIC:
- Issued a RFI for public comments on bank merger transactions
- CFPB:
- Issued policy guidance on potentially illegal consumer review practices
- Released reports on Characteristics of mortgage borrowers during the pandemic and Emergency Savings and Financial Security
- Released 2021 HMDA data on mortgage lending
Capital Markets
- SEC:
- Proposed rule changes that would require public companies to disclose climate-related information about their businesses within new sections of filings; associated statements here and here
- Proposed amendments to remove references to credit ratings from Regulation M
- FINRA:
- Issued a notice reminding member firms about the scope of broker-dealer chief compliance office (CCO) supervisory liability
Other
- Administration:
- Released a fact sheet outlining additional Russian sanctions, as well as a collaborative sanctions evasion initiative with G7 and EU nations
- Released a fact sheet and statement regarding the recent executive order strengthening the federal government’s cybersecurity defenses
- Released a fact sheet on the PAVE action plan to address racial and ethnic bias in home valuations
- Treasury (OFAC):
- Announced additional sanctions on Russian individuals and companies
- Released FAQs on transacting in gold with the Russian central bank
- U.S. Congress:
- Senate Banking Committee:
- Held a hearing on strengthening oversight and equity in the appraisal process
- Senate Banking Committee:
- House Financial Services Committee:
- Sent a letter to the financial and commercial industry over Russian disinvestment
- BIS:
- Announced a collaborative project on an experimental multi-CBDC platform for international settlements
Industry news headlines
(Some links may require subscription)
- AI Experts Warn of Potential Cyberwar Facing Banking Sector (WSJ)
- How Philadelphia is laying the groundwork for a public bank (American Banker)
- Surveillance Risks Shape How Central Banks Test Digital Currencies (WSJ)
- Companies Brace for Higher Compliance Costs as SEC Proposes Climate Disclosures (WSJ)
- Where will banking regulators go next on climate policy? (American Banker)
- Powell Flags Risks of New Digital Financial Products (WSJ)
- U.S. Charges Russian Government Hackers With Campaign of Global Energy Cyberattacks (WSJ)
- Waters requests 'detailed information' on U.S. banks' exit from Russia (American Banker)
- U.S., EU Reach Preliminary Deal on Data Privacy (WSJ)
