From procedural rule updates to assisting institutions hit
by natural disasters, federal regulators undertake a wide scope of activities that
do not often make for major news headlines but are impactful nonetheless.
Below are a handful we have compiled in this roundup:
CFPB revises supervisory appeals process
The Consumer Financial Protection Bureau (CFPB) issued a
procedural rule updating the process financial institutions may use to appeal
supervisory findings. The revised rule broadens the CFPB officials eligible to
evaluate appeals, the options for resolving an appeal and the types of matters
subject to appeal. It also outlines additional clarifying changes. Learn what
specific updates the bureau adopted for the process here.
Fed releases minutes from Jan. 30-31 FOMC meeting
The Federal Reserve recently published the minutes of its
Jan. 30-31 meeting of the Federal Open Market Committee (FOMC) during which the
board voted
unanimously to maintain the federal funds rate in the target range between
5.25 and 5.5 percent, indicating a commitment to current monetary policy
measures. The FOMC presented data indicating solid U.S. real GDP growth in the
fourth quarter of 2023, albeit slower than the previous quarter. The data also
indicated labor market conditions, although tight, showed signs of easing, with
slower employment gains and stable unemployment rates, accompanied by decreased
labor force participation and employment-to-population ratios. The complete
minutes are available here.
FDIC releases regulatory relief guidance for Michigan
banks
In recognition of the serious impact of severe storms,
tornadoes and flooding in areas of Michigan, the Federal Deposit Insurance Corp.
(FDIC) announced it will provide regulatory assistance to affected financial institutions
under its supervision. These initiatives will provide regulatory relief and
facilitate recovery. The FDIC encourages depository institutions in the
affected areas to meet the financial services needs of their communities, which
include Eaton, Ingham, Ionia, Kent, Livingston, Macomb, Monroe, Oakland and
Wayne counties. The types of relief covered in the initiative can be found here.
OCC acting comptroller shares views on crypto
intermediaries
Acting Comptroller of the Currency Michael Hsu stressed the
importance of coordinating and collaborating on the supervision initiatives
aimed at global financial institutions in prepared remarks delivered before the
Financial Stability Board’s Crypto Working Group. Specifically, he said there
needs to be increased focus on crypto-asset activities, discussing the
relationship between crypto and tokenization. His full remarks are available here.
SEC proposes rule on qualifying venture capital funds
The Securities and Exchange Commission (SEC) issued a proposed
rule updating the dollar threshold to $12 million in aggregate capital
contributions and uncalled committed capital for a fund to qualify as a
“qualifying venture capital fund” as they relate to the Investment Company Act
of 1940. The proposed change represents a $2 million increase from the current
$10 million threshold. Qualifying venture capital funds are excluded from the statute’s
definition of an “investment company.” The Economic Growth, Regulatory Relief,
and Consumer Protection Act of 2018 requires the SEC to index the dollar figure
for this threshold to inflation once every five years. Find more details here.