In this issue...
President Trump nominated Jerome Powell to serve as Chair of the Federal Reserve. Powell is largely supportive of the current monetary policy and existing large bank capital, stress testing, liquidity, and resolvability regulations. However, he recommends tailoring some financial regulations according to a firm's size, risk, and complexity; he supports changing the Volcker Rule to focus on firms with large trading books and to provide relief for smaller firms; and he endorses the Fed's principles-based approach to assessing the effectiveness of boards.
President Trump signed into law the resolution to repeal the CFPB's final arbitration rule, which bars class action waivers in consumer arbitration agreements. The Senate narrowly passed the repeal resolution last week.
Representative Jeb Hensarling, Chair of the House Committee on Financial Services, announced that he will not seek reelection in 2018.
The Senate Banking Committee approved the nominations of Hester M. Peirce and Robert J. Jackson, Jr. to serve as SEC commissioners.
The Financial Stability Board issued a report on the implications for financial stability from the growing use of artificial intelligence and machine learning in financial services.
In separate actions, the CFTC’s Division of Market Oversight extended no-action relief to swap execution facilities from an audit trail data requirement and for several types of swaps executed as part of a package transaction. Swaps dealers also received no-action relief from compliance with the variation margin requirements related to legacy special purpose vehicles swaps.
The OCC is seeking comment on a proposed rule that would make several technical revisions to the OCC’s Annual Stress Test rule.
The OCC updated its policies and procedures regarding bank enforcement actions and related matters as reflected in several booklets in the Comptroller’s Handbook; the agency also issued a new booklet on "Subsidiaries and Equity Investments" in the Comptroller’s Licensing Manual.
The FRB issued SR 17-12 on timing expectations for safety-and-soundness examination and inspection reports for regional financial institutions under FRB supervision.
The CFPB released three separate reports highlighting student loan debt, service member consumer complaints, and credit risks related to longer-term auto loans.
The House passed financial services bills to include lower income investors as "accredited investors," and to allow issuers to communicate with investors pre-IPO.