AB Policy & Regulation Opinion

Law and regulation

Fed's conundrum: Whether to remove Wells Fargo's asset cap

Amid the coronavirus emergency, the central bank may have to decide at what point the imperatives of an economic crisis outweigh the requirements of its most severe enforcement action in recent memory.

By Kevin Wack

41m ago

The question of whether to lift Wells Fargo's asset cap in the midst of a of a crisis is a complicated one for Fed Chairman Jerome Powell, left. As recently as March 10, Wells Fargo CEO Charlie Scharf said that he believes the $1.95 trillion cap is appropriate.

CFPB

CFPB clarifies credit reporting procedures in light of coronavirus

The agency said lenders should avoid reporting delinquent payments to credit bureaus for consumers who have sought payment relief due to the pandemic.

By Kate Berry

1h ago

The CFPB said it will not take enforcement actions against or cite in examinations any company that provides information to credit reporting agencies that accurately reflects payment relief measures or makes a good-faith effort to investigate disputes as quickly as possible.

Delinquencies

FHFA chief: Coronavirus-related delinquencies could outnumber subprime

Federal Housing Finance Agency Director Mark Calabria said a virus-induced financial crisis might give rise to more delinquencies and foreclosures than the 2007 subprime mortgage meltdown.

By Hannah Lang

4h ago

Federal Housing Finance Agency Director Mark Calabria

BankThinkHow fintech can save small businesses on the brink

Lenders and government guarantors can use loan technology to bring immediate relief to business owners, former OCC official Jo Ann Barefoot says.

6h ago

Jo Ann Barefoot

CEO and Co-founder

Alliance for Innovative Regulation

Morning scan

Banks may get boost from loan program; Trouble for mortgages not backed by U.S.

SBA loans could pour billions into bank coffers; Fed bailed out government-backed market, others may suffer.

By George Yacik

9h ago

Trump administration

Does FSOC have a role to play in coronavirus response?

After budget cuts and a strategic transition, the interagency body conceived by Dodd-Frank to identify systemic threats has largely been silent as the pandemic roils the economy.

By Hannah Lang

March 31

“FSOC was established as a means of looking at systemic issues and coordinating across the agencies,” said Treasury Secretary Steven Mnuchin. “We have been using this in a very productive way, but now especially, this is a very important forum for us as we confront a unique situation.”

Coronavirus

Calls to cease non-coronavirus rulemaking grow louder

The ICBA chief’s plea for a six-month halt to regulations not related to the pandemic followed similar calls by community groups and a key Senate Democrat.

By Brendan Pedersen

March 31

“Combating the COVID-19 crisis demands the full attention and all available resources from the public, from state, local, and federal government entities, as well as all industries, including the vital financial services industry,” said ICBA CEO Rebeca Romero Rainey.

Regulatory relief

Fed delays effective date of bank control rule due to coronavirus

The regulation established standards for investors who own less than a quarter of an institution. Banks are getting more time for implementation as they focus on effects of the COVID-19 pandemic.

By Hannah Lang

March 31

“Many companies, including regulated financial institutions, have also expressed a desire to consult with Board staff about the effect of the new control rule on various existing investments and relationships,” the Fed said.

BankThinkTwelve years later, another ill-conceived bailout

The 2008 package proved some banks were too big to fail. But the rushed $2.2 billion stimulus shows now any company can be bailed out.

March 31

Jeff Hinkle

Director of Content

Polyient Labs

Opinions