Banking

The Consumer Financial Protection Bureau has issued a final rule to facilitate the industry’s transition away from the LIBOR interest rate index. It will be effective April 1, 2022.

The discontinuation of LIBOR is in relation to a criminal rate-setting conspiracy implicating large international banks, undermining the public’s confidence in the index.

For more details about the rule, read on.

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The Consumer Bankers Association and American Bankers Association penned a letter to the Consumer Financial Protection Bureau, urging it to protect consumers in a rapidly evolving marketplace.

The letter is in response to the bureau’s notice and request for comment regarding big tech payment platforms and its inquiry sent to Amazon, Apple, Facebook, Google, PayPal, and Square for information on their business practices.

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President Joe Biden nominated Jerome Powell for a second term as chair of the board of governors of the Federal Reserve System. He also nominated Lael Brainard to serve as vice chair.

Powell initially took office as chairman in February 2018 with a four-year term ending in February 2022. Should he be confirmed for a second term, his tenure will be extended to Jan. 31, 2028.

For industry reactions, read on.

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Rep. Jesús García (D-Ill.) and 16 other representatives introduced HR 5974, a bill to amend the Truth in Lending Act to extend consumer credit protections provided to members of the armed forces and their dependents to all consumers.

“This bipartisan bill expands the time-tested protections of the Military Lending Act to veterans, military families, and other consumers. Congress should act with haste to advance it to protect families from this unpayable debt,” García said.

For more details on the legislation, read on.

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The Federal Deposit Insurance Corp.’s (FDIC) quarterly banking profile for the third quarter of 2021 showed America’s banks were fundamentally sound.

Reports came from 4,914 commercial banks and savings institutions insured by the FDIC and reflected an aggregate net income of $69.5 billion during the relevant time period, an increase from the same quarter the year before.

For more details and industry reactions, read on.

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The Small Business Administrations’ Office of Advocacy, the Independent Community Bankers of America, the American Bankers Association, and state banking associations have requested the Consumer Financial Protection Bureau extend the comment deadline for the proposed rule implementing Section 1071 of the Dodd-Frank Act.

The proposed rule outlines the requirements for lenders disclosing information about their lending to small businesses, such as the amount and type of small-business credit applied for and extended, demographic information about small-business credit applicants, and key elements of the price of the credit offered.

For more details about the request, read on.  Read on »

The Office of the Comptroller of the Currency issued an interpretive letter clarifying the authority of banks to engage in certain cryptocurrency activities and the agency’s authority to charter a national trust bank.

“Today’s letter reaffirms the primacy of safety and soundness,” acting Comptroller Michael Hsu said. “Providing this clarity will help ensure that these cryptocurrency, distributed ledger, and stablecoin activities will be conducted by national banks and federal savings associations in a safe and sound manner.”

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Saule Omarova, President Joe Biden’s nominee to lead the Office of the Comptroller of the Currency, faced a challenging hearing before the Senate Committee on Banking, Housing, and Urban Affairs.

Community banks’ opposition to her nomination took center stage during Omarova’s testimony and questions, according to the Independent Community Bankers of America (ICBA). Its joint letter of opposition, along with 60 others, was entered into the record.

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Fannie Mae’s Economic and Strategic Research (ESR) Group stated inflation is a key forecast concern in its November 2021 commentary.

The ESR group also published its expectations for 2023 real GDP for the first time, forecasting growth that is in line with the pre-pandemic domestic growth trend.

For more information from the report, read on.  Read on »

In an editorial building off a Consumer Bankers Association (CBA) white paper, CBA President and CEO Richard Hunt asked Consumer Financial Protection Bureau Director Rohit Chopra to establish clear and transparent “rules of the road” rather than regulating by enforcement.

“In the past, the bureau has used its authority to sidestep the formal rulemaking process by announcing new regulatory standards through enforcement actions instead of issuing rules or guidance,” Hunt wrote. “But rarely, if ever, is it in the best interest of the consumers America’s leading banks are working to serve.”

Read on for more details.

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