Regulation & Reform
Monday, September 23, 2013
Three years after passage of the Dodd-Frank Act, many bankers are still anxious as they wait for some rules to be written and others to be implemented. Yet a new set of regulatory and legislative challenges looms. At American Banker's Regulatory Symposium, bankers, regulators and lawmakers shared their ideas on housing finance reform, anti-money laundering requirements, the prospects and dangers of social media, and many other hot-button topics.
Certain conclusions can already be drawn about the effort to unwind Fannie Mae and Freddie Mac and set up an entirely new housing finance system, including whether it will include a controversial government guarantee.
The CEO of HSBC USA says that stricter regulation is crucial to strengthening the banking system and winning back customers' trust, but she remains frustrated by the glacial pace of the rulemaking.
Sen. Bob Corker, a co-author of legislation to overhaul the mortgage finance market, forcefully defended his proposal that private capital take at least 10% of the first loss on mortgage-backed securities. Others predicted that he'll have to water it down to advance the bill.
Revisions to banks' duties under the Home Mortgage Disclosure Act are coming soon, and they are meant to "ease the operational and technological burdens" of banks, the head of the Consumer Financial Protection Bureau said.
With every action now being scrutinized in real time, banks don't necessarily need guidelines and mandates to know if they are doing right by customers and shareholders, Fifth Third's Kevin Kabat says at American Banker's Regulatory Symposium.
Comptroller of the Currency Thomas Curry said his agency plans to issue formal guidelines about the regulator's "heightened expectations" for large banks under its supervision.
Federal Deposit Insurance Corp. Chairman Martin Gruenberg tells audience at American Banker's Regulatory Symposium of need for "complementary" relationship between leverage and risk-based capital ratios.
Community bankers may have a long wish list of legislative changes for Congress to consider, but it is unlikely lawmakers will take up a comprehensive bill addressing those issues anytime soon.
Panelists at American Banker's Regulatory Symposium will discuss a federal proposal addressing how banks should develop risk management policies for their use of social media.
In order to prevent cyber attacks and keep the financial system safe, banks have to understand the key threats to the industry. We asked two top banking regulators what they're worried about right now.