The Washington Report For week ended January 19, 2018 | KPMG | US

Washington Report 360 | January 19, 2018

The Washington Report For week ended January 19, 2018

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Key Highlights

  • CFPB Acting Director Mick Mulvaney has requested $0 from the Federal Reserve for its current quarterly budget asserting that the Bureau has sufficient reserve funds to carry out its statutory mandates for the second fiscal quarter of 2018.
  • The CFPB announced plans for a rulemaking process to reconsider the Payday Rule, which went into effect January 16, 2018. OCC Comptroller Otting has indicated he is open to the idea of banks re-entering the market for small-dollar loans and is encouraging them to present relevant business models for review, reversing a long-held position by the agency.

 

Financial services policy news

CFPB Acting Director Mick Mulvaney requested $0 from the Federal Reserve for its current quarter operations budget stating that the CFPB will rely on its reserves of $177 million to cover projected costs of approximately $145 million.

The Senate Banking Committee reapproved the nomination of Jerome Powell to be chairman of the Federal Reserve Board and approved Randall Quarles to a full term as a Federal Reserve Board governor.

President Trump reiterated support for efforts to ease restrictions imposed on consumer lending activity by Dodd-Frank, according to news reports. Interestingly, recent reports from the Federal Reserve and the Federal Reserve Bank of New York indicate that consumer lending across auto, credit card, and student debt has been increasing.

Robert Jackson and Hester Peirce were sworn in as SEC commissioners, giving the SEC its first full, five-member commission since 2015.

The SEC held the inaugural meeting of the Fixed Income Market Structure Advisory Committee, which was established to advise the SEC on the efficiency and resiliency of the corporate bond and municipal securities markets and to identify opportunities for regulatory improvements.

The Senate Banking Committee held the second of two hearings on combatting money laundering and illicit finance, including a discussion of issues related to cryptocurrency.

Financial services legislative and regulatory news

The CFPB stated that it would engage in a rulemaking process to reconsider the Payday Rule, which went into effect January 16, 2018, and stated further that it may waive the April 16, 2018 deadline to submit an application for preliminary approval to become a registered information system.

According to a news report, OCC Comptroller Otting has indicated he is open to the idea of banks re-entering the market for small-dollar loans and is encouraging them to present relevant business models for review by the OCC. He suggested that since banks exited this market a credit gap had developed that is only partially covered by nonbank lenders.

The CFPB announced plans to publish a series of Requests for Information seeking comment on its enforcement, supervision, rulemaking, market monitoring, and education activities. The initial request will address Civil Investigative Demands.

FINRA published guidance on protecting personal information in its registration form filings.

The House Committee on Financial Services approved 15 bills focused broadly on regulatory relief for community banks, consumer protection, mortgage lending, stress testing, and heightened prudential standards.

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