The Washington Report week ended December 08, 2017 | KPMG | US

Washington Report 360 | December 08, 2017

The Washington Report week ended December 08, 2017

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Highlights

  • The Senate Banking Committee advanced a bipartisan bill that would raise the SIFI threshold for applying enhanced prudential standards to bank holding companies from $50 billion to $250 billion and raise the threshold for company-run stress testing requirements to $250 billion. Treasury has recommended changing the SIFI threshold.
  • An Office of Financial Research report named the top three threats to financial stability as cybersecurity vulnerabilities, issues in the resolution of failing systemically important financial institutions, and structural changes in markets and industry.
  • GAO concluded that the CFPB’s 2013 guidance on indirect auto lending is a "general statement of policy" and a rule subject to the Congressional Review Act. The finding effectively nullifies the guidance.
     

Financial services policy news

The Senate Banking Committee approved the nomination of Jerome Powell as chair of the Federal Reserve Board, sending the nomination for a vote in the full Senate.

Jelena McWilliams was nominated as chair of the FDIC. She has experience as a chief legal officer for a bank, a chief counsel on the Senate Banking Committee, and an attorney at the Federal Reserve Board.

Comptroller of the Currency Joseph Otting reversed the agency's plan to remove in-house examiners from the large institutions they supervise, according to news reports.

FinCEN launched an exchange program with financial institutions to share information to help identify vulnerabilities and thwart financial crimes.

Financial services legislative and regulatory news

The Senate Banking Committee advanced a bipartisan bill to the full Senate that would raise the SIFI threshold for applying enhanced prudential standards to bank holding companies from $50 billion to $250 billion, raise the threshold for company-run stress testing requirements to $250 billion, and provide an “off-ramp” from capital and liquidity requirements for certain small, well-capitalized institutions.

An Office of Financial Research report named the top three threats to financial stability as cybersecurity vulnerabilities, issues in the resolution of failing systemically important financial institutions, and structural changes in markets and industry.

GAO released a decision finding the CFPB’s 2013 guidance on indirect auto lending is a "general statement of policy" and a rule subject to the Congressional Review Act. It must be submitted to both houses of Congress and to the Comptroller General before taking effect.

A bipartisan group in the House of Representatives introduced a resolution of disapproval under the Congressional Review Act to repeal the CFPB's payday lending rule.

The Federal Reserve Board voted to keep the Countercyclical Capital Buffer (CCyB) at the current level of zero percent.

The CFTC announced that three exchanges self-certified new contracts for bitcoin futures and binary options contracts.

The Basel Committee's oversight body endorsed the outstanding provisions of the Basel III regulatory reforms, including revised standardized approaches to credit risk and operational risk and revisions to the measurement of the leverage ratio and a leverage ratio buffer for G-SIBs.

The European Commission recognized some CFTC-authorized U.S. trading venues as equivalent for compliance with MiFID II regulations for derivatives, ensuring continued trading by EU counterparties on U.S. derivatives platforms.

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