Politics

The Federal Reserve's much-awaited Basel III proposal would raise capital significantly for the largest banks, a move that neither the international agreement nor the moment requires. Somehow that square is going to get circled.

The Federal Reserve is leading the push for broader, more standardized risk-capital rules, yet some of its board members, other regulators and industry groups are uncomfortable with the proposal.

While talks between House Financial Services Committee Chairman Patrick McHenry, R-N.C., and ranking member Rep. Maxine Waters, D-Calif., fell apart on stablecoin legislation, crypto anti-money-laundering bills quietly moved forward in the Senate.

Federal Reserve Board Gov. Phillip Jefferson joined three other board members in supporting a notice of proposed rulemaking, but expressed concerns about the economic impact of the changes.

The two Trump-appointed governors expressed skepticism that the increased capital requirements for regional banks were necessary to keep the banking sector resilient.

The FDIC proposed raising capital requirements for banks with $100 billion or more in total assets gradually over the next five years. Republican appointees on the board opposed the rule as excessive and impetuous.

Following the difficulties of Silicon Valley Bank and Signature Bank this spring, banks are approaching the emergency lending facility more proactively, the Federal Reserve chair said.

Treasury Department Assistant Secretary for Financial Institutions Graham Steele also spoke favorably of capital changes set to be proposed by banking agencies on Thursday.

The Bank Policy Institute and American Bankers Association want the Federal Reserve to conduct a public review process when determining scenarios for the annual exams. They also want more information on the test's internal models and formulas.

With the introduction of FedNow, the Federal Reserve is out of good reasons not to mandate that banks process payments by the fastest means available.

A report by the Public Company Accounting Oversight Board raised concerns about declining audit quality across the accounting industry for a second consecutive year. The report found instances of firms using insufficient testing and inadequate support for audit conclusions.

Evidence from the implementation of the 2009 CARD Act shows that warnings about higher interest rates and other unintended consequences don't square with reality.

The Federal Reserve Board of governors will discuss the much anticipated capital changes on Thursday afternoon.

The Minnesota Bankers Association and Lake Central Bank jointly filed a lawsuit against the Federal Deposit Insurance Corp. over its nonsufficient funds fee rules' inclusion of "unfair or deceptive acts or practices" violations in its policy.

A U.S. senator claims that proposed new rules would allow bank supervisors to oust bank executives over things as vague as "climate risk" standards.

Both Senate Banking Committee Chairman Sherrod Brown, D-Ohio, and ranking member Tim Scott, R-S.C., said they would consider what reforms "if any" are necessary post Silicon Valley Bank failure.

The Small Business and Entrepreneurship Committee voted nearly unanimously to advance a bill that would halt a plan by the Small Business Administration to open up some of its loan programs to fintech companies.

Officials at the central bank have been discussing a real-time payment system for a decade. Work on FedNow began in 2019.

Rohit Chopra, the director of the Consumer Financial Protection Bureau, weighed in on credit card late fees, an upcoming open banking rulemaking and the chaos that could result if the Supreme Court defunds the agency.

The Consumer Financial Protection Bureau celebrates its 12th anniversary on Friday, prompting Director Rohit Chopra to discuss the agency's work including a proposal to set credit card late fees at $8 and the upcoming Supreme Court case that could defund the bureau.