Final Basel-based capital rules to be approved by Federal Reserve at Board meeting on July 2 at 9:30 am.
- Board also to propose rule conforming market risk capital rule to Basel III.
- FDIC Board and OCC likely to follow during same week.
Leverage ratio to be part of capital rules; media reports ratio at 5-6%.
- Requirement to be in proposed form.
- Basel consultative papers released
Supreme Court grants certiorari in NLRB v. Noel Canning, No. 12-1281.
- Case involving recess appointments to NLRB.
- Texas bans merchant surcharges on use of debit cards.
Corker-Warner bill, "Housing Finance Reform and Taxpayer Protection Act," S. 1714, introduced, June 25, 2013, available here.
- Fannie Mae and Freddie Mac wound down
New mortgage loan insurance regime
- 10% capital requirement
Money Market Funds
- Data collection: Federal Reserve proposes daily reports on federal funds transactions, Eurodollar transactions, and CDs from U.S. banks with more than $25 billion in assets and U.S. branch and agency offices of foreign banks with third party assets of more than $900 million in assets. Available here.
CFPB proposes additional changes to 2013 mortgage rules. Materials available here. Areas covered include:
- Procedures for obtaining follow-up information on loss-mitigation applications.
- Short-term forbearance plans
- Lending in rural or underserved areas
- Financing of credit insurance premiums
- Definition of loan originator
- Points and fees thresholds for manufactured housing employees
- Revised effective dates of Loan Originator rule and ban on financing of credit insurance
OCC Mortgage Metrics Report for the First Quarter of 2013 released and available here.
- Modest but generally favorable changes in performance
- Material reductions in loans in process of foreclosure and completed foreclosures
- Slight decrease in home retention actions
CFPB issues final rule on supervision of nonbanks. Material available here.
- Rule implements Dodd-Frank standard: whether CFPB has "reasonable cause" to believe that financial service or product poses "risk" to consumers.
- Notice and response
- Once supervised, nonbanks must wait two years before petitioning for end of supervision.
- CFPB has separate authority, without making a reasonable cause finding, to regulate mortgage, payday, and private education lenders.
- CFPB also has separate authority to regulate "larger participants" and has used this authority to supervise credit reporting market and debt collectors. Supervision of credit reporting market has been proposed.
- Hearing, "Private Student Loans: Regulatory Perspectives," Sen. Banking Comm. (June 25, 2013). Archived webcast and related material available here.
Series of CFTC no-action letters providing time-limited relief on Dodd-Frank requirements (June 26, 27, 2013). Individual links available here. Topics covered include:
- Reporting valuation data for cleared swaps by SDs and MSPs: June 30, 2014.
- Reporting requirements for bespoke or complex swaps: Sept. 30.
- Reports on cleared credit default swaps: Dec. 31.
- Certain floor trader activities: Dec. 19.
- Documentation requirements on SDs and MSPs for foreign exchange transactions that are swaps and certain physically settled forwards and swap agreements: Sept. 1/Dec. 31.
- Portfolio reconciliation requirements for SDs and MSPs: Aug. 23.
- Certain identifying information about counterparties: June 30, 2014.
Too Big to Fail
- Hearing, House Fin. Serv. Comm., "Examining How the Dodd-Frank Act Could Result in More Taxpayer-Funded Bailouts" (June 26, 2013). Archived webcast and materials available here.
- Hearing, Sen. Banking Comm., "Private Student Loans: Regulatory Perspectives" (June 25, 2013). See above.
- Hearing, Sen. Appropriations Comm., Subcomm. On Financial Institutions and General Government, "FY14 CFTC, SEC Budget Hearing." Archived webcast and materials available here.
- Hearing, House Fin. Serv. Comm., Housing and Insurance Subcomm., "Evaluating How HUD's Moving-to-Work Program Benefits Public and Assisted Housing Residents" (June 26, 2013). Archived webcast and materials available here.
- Hearing, House Fin. Serv. Comm., "Examining How the Dodd-Frank Act Could Result in More Taxpayer-Funded Bailouts" (June 26, 2013). See above.
Nominations hearing, Sen. Banking Comm. (June 27, 2013)
- Melvin Watt, to be Director, FHFA
- Jason Furman, to be Chairman, CEA
- Kara Stein, to be Commissioner, SEC
- Michael S. Piwowar, to be Commissioner, SEC
- Richard T. Metsger, to be Member, NCUA
July 1 – Federal Reserve Board meeting
- Advance and discount rates to be charged by Federal Reserve Banks
- July 2 – Federal Reserve Board meeting on capital rules. See above.
- July __ -- FDIC likely to approve same final and proposed Basel-based capital rules.
FOMC cont'd, speeches and remarks clarifying that June 19 statement does not reflect decision to raise interest rate target or to pull back from bond-buying program absent demonstrable improvement in labor market and economy. Remarks include:
- Governor Jerome Powell, "Thoughts on Unconventional Monetary Policy," Remarks at The Bipartisan Policy Center (June 27, 2013), available here.
- Governor Jeremy Stein, "Comments on Monetary Policy," Speech at the C. Peter McColough Series on International Economics (June 28, 2013), available here.
- William C. Dudley, Federal Reserve Bank of New York, "Are Recent College Graduates Finding Good Jobs?" Remarks at the Regional Economic Press Briefing (June 27, 2013), available here.
- Dennis Lockhart, Federal Reserve Bank of Atlanta, Remarks before the Kiwanis Club of Marietta (June 27, 2013), available here.
FOMC dissenting views
- Dove: James Bullard, President, Federal Reserve Bank of St. Louis, Interview, Washington Post (June 21, 2013), available here.
- Hawk: Esther George, President, Federal Reserve Bank of Kansas City. No public statement beyond FOMC Statement.
Regulatory Comment Deadlines
- July 8 – CFPB: Consumer financial civil penalty fund.
SEC: Regulatory systems compliance and integrity
- July 15 – CFPB: 60-day Paperwork Reduction Act notice: Truth in Savings Act.
FHFA: Executive compensation
FHFA: Golden parachute and indemnification payments
July 22 – SEC: all Dodd-Frank Title VII proposed rules on security-based swaps and security-based swap market participants have been reopened for comment.
- Includes S7-43-10: End-User Exception to Mandatory Clearing of Security-Based Swaps
FHFA: Removal of references to credit ratings
CFPB: Modifications to mortgage ___ rules
- August 4 – Federal Reserve: Application of swaps push-out rule to uninsured branches and agencies of foreign banks.
- August 21 – SEC: Cross-border security-based swap transactions.
- 60 days after Federal Register publication – Federal Reserve: data collection requirements for certain money market instruments
- September 17 – SEC: Money market reforms.
- September 27 – BCBS: Capital treatment of bank exposures to central counterparties
Non-internal model method for capitalising counterparty credit risk exposures