Politics

The Financial Stability Oversight Council issued a much-anticipated report with tentative recommendations on how regulatory agencies should begin preparing to contain the risk.

Sen. Elizabeth Warren, D-Mass., said the new ethics rules on securities trading by Federal Reserve officials are insufficient and reiterated her opposition to the renomination of Jerome Powell to a second term as Fed chairman.

The central bank's new ethics guidelines follow revelations that several high-level officers engaged in questionable trading activity last year while privy to the Fed's internal discussions about its coronavirus response.

From factoring global warming into the underwriting of government-backed loans to conducting "sensitivity analysis" of banks' ability to withstand severe weather, several government agencies are accelerating efforts to address the impact of climate change on the financial system.

Government must adapt supervision to account for fintechs, cryptocurrencies and other innovations. Otherwise it could contribute to a debacle like when it failed to grasp the impact that new financial instruments such as money market funds would have on traditional financial institutions.

Democrats proposed raising the account threshold and exempting certain transactions from a measure enlisting financial institutions’ help in catching tax cheats. But opponents say the changes are insufficient and centrist lawmakers — whose support is crucial to enact the plan — were mum.

A House member suggested she and other party moderates are open to revamping or even scrapping a plan that would require banks to report customer account information to the Internal Revenue Service.

Trade groups are challenging a provision of the CFPB’s payday lending rule that limits lenders’ ability to withdraw funds from a consumer's bank account after two consecutive failed attempts.

A central bank digital currency based on the U.S. dollar could pull deposits from banks, and it might crowd out innovative private-sector products.

Banks and other stakeholders are trying to stop a proposal requiring financial institutions to submit more account data, but the Biden administration says opponents of the measure are spreading the false notion that it would reveal information about specific transactions.

Gov. Randal Quarles is no longer vice chair for supervision, and the Federal Reserve Board will make bank regulatory policy only when multiple members reach consensus. Observers expect inaction until the Biden administration fills key leadership posts.

Democrats’ $3.5 trillion social policy package would appropriate over $300 billion for housing-related measures, including down payment assistance for first-time homebuyers. But those provisions could be on the chopping block as centrists try to trim the bill’s price tag.

Zixta Q. Martinez has been with the Consumer Financial Protection Bureau since its inception a decade ago and most recently was a senior advisor in the supervision, enforcement and fair-lending division.

Some policymakers in the nation’s capital have urged the Federal Reserve banks of Boston and Dallas to consider people of color and women while selecting new presidents. Republicans led by Sen. Pat Toomey of Pennsylvania say the process should be left to the local bank boards.

Even financial institutions that have updated their practices still don’t hit the basic benchmarks of transparency and fairness.

Federal Reserve Vice Chairman for Supervision Randal Quarles will be removed from his role as the main watchdog of Wall Street lenders after his title officially expires this week.

Allowing the Small Business Administration to originate, rather than just guarantee, loans would provide much-needed capital to startups and mom-and-pop shops that many banks, credit unions and other lenders view as risky credits.

A new state law effectively bans the deposit of state public assistance funds into certain accounts that charge the fees. Supporters say it prevents companies from exploiting a loophole in existing prepaid card rules, while firms that will likely be affected say it limits options for underserved consumers.

An Indiana housing nonprofit wants the Fed to take a closer look at the proposed merger. Its latest move is a lawsuit that alleges racial discrimination by the regional bank.

Lawmakers appeared supportive of Alanna McCargo's nomination at a Senate hearing Thursday. If confirmed, the former Urban Institute vice president would fill a role that has been vacant since 2017.