Politics

The president highlighted the economic pain his sanctions have inflicted on Russia during his first State of the Union address, and called on the Senate to confirm his slate of nominees to the Federal Reserve.

The impact of U.S. sanctions against Russia on U.S. banks has so far been limited. But further escalation could lead to anti-money-laundering compliance challenges and invite cyberattacks, among other consequences.

The Federal Reserve Board is taking a fresh look at how financial firms get coveted access to the U.S. central bank’s payment system — a controversial question that’s weighing on President Biden’s pick to be Wall Street’s top bank regulator.

Lawmakers in New Mexico recently approved a stringent rate limit, and similar efforts are underway in Rhode Island and Michigan. The state-level actions are among the "numerous headwinds" facing high-cost lenders, one analyst said.

The European Union is discussing the exclusion of seven Russian banks from the Swift financial messaging system, but the proposed list spares the nation’s biggest lender and a bank part-owned by the Russian gas giant Gazprom. 

JPMorgan Chase CEO Jamie Dimon said disconnecting Russian banks from the Swift messaging system may bring “unintended consequences” that include third parties finding ways around the penalty.

CFPB Director Rohit Chopra said the bureau is concerned that the spike in car prices, due partly to the global chip shortage, could create incentives for servicers to illegally seize vehicles for their resale value.

Industry groups are adamant that regulators must make it easier for banks to merge in order to compete with nonbanks, while consumer advocates say bank mergers are too easy and hurt the consumer beyond raising the price of credit.

All Russian banks that have already been sanctioned by the international community are going to be restricted from Swift. That list can be expanded if needed, with an eye toward maximizing the impact on Russia and minimizing the impact on the European, officials said.

Its modifications aim to help two government-sponsored mortgage investors manage risk and rebuild capital while retaining enough flexibility to fulfill their affordable housing missions, said the Federal Housing Finance Agency’s acting director, Sandra Thompson.

Russian President Vladimir Putin will initially focus on assisting lenders hit with penalties imposed by the West in connection with the invasion of Ukraine, according to attendees of a closed meeting with Russian officials to address the impact of the conflict on big business.

Brad Bolton, incoming chairman of the Independent Community Bankers of America, wants the advocacy group to push back against overly broad policymaking and credit unions' tax status, while opening the door to cannabis banking.

U.K. Prime Minister Boris Johnson is among the world leaders pushing for a ban, and U.S. President Biden was grilled about the possibility during a press conference where he announced sanctions in response to Russia's military action in Ukraine.

President Biden announced sanctions against Russia's largest lender and members of Russian President Vladimir Putin's inner circle in response to the invasion of Ukraine, but took pains to reduce the impact on the U.S. and European economies.

Senate Banking Chair Sherrod Brown said Thursday he will try again next week to advance President Biden’s five Federal Reserve picks past a blockade led by ranking Republican Pat Toomey on Sarah Bloom Raskin’s nomination to vice chair of supervision.

The move confirms speculation that the Federal Housing Finance Agency would return to a pre-pandemic plan to tighten requirements for mortgage lenders and servicers that work with two government-sponsored enterprises.

The Federal Reserve's capital guidance for S corporations is hindering some community development banks' access to the Treasury's $9 billion Emergency Capital Investment Program. The Fed has offered exemptions in the past, so why isn't it doing so now?

The Federal Reserve formally adopted tough, sweeping restrictions on officials’ investing and trading, aiming to prevent a repeat of the ethics scandal that engulfed the U.S. central bank last year.

Government officials spend a lot of time criticizing banks for gouging customers even though their own statistical reports demonstrate that fees are not a major issue for consumers.

In a Senate Banking Committee hearing on the economy, Republicans reiterated their demand for more transparency from Sarah Bloom Raskin, President Biden's pick to serve as vice chairman for supervision at the Federal Reserve.