Legislative Activity

Lawmakers Moving Forward with Financial Services Reforms

House Financial Services Chairman Jeb Hensarling (R-TX) has indicated that he plans to reintroduce his replacement for the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) – the CHOICE Act – but in various bills to give at least some provisions a greater likelihood of being enacted. Chairman Hensarling also noted that he plans to work closely with Senate Banking Chairman Mike Crapo (R-ID) throughout the process. Relatedly, the Senate Banking Committee has put out a bipartisan call for legislative proposals that would “enable consumers, market participants and financial companies to better participate in the economy.” Chairman Crapo and Ranking Member Sherrod Brown (D-OH) will collect proposals until April 14.

Separately, House Financial Services Committee Republicans last week sent a letter to the Labor Department expressing their “strong belief” that the Trump Administration may need to halt the fiduciary rule for longer than proposed. In the letter, the lawmakers expressed support for a proposal to delay the regulation for 60 days, but argued that more time might be necessary to implement the findings of a review ordered by the White House last month.

This Week’s Hearings:

  • On Tuesday, March 28, the House Financial Services Subcommittee on Oversight and Investigations has scheduled a hearing titled “The Arbitrary and Inconsistent Non-Bank SIFI Designation Process.”
  • On Tuesday, March 28, the House Financial Services Subcommittee on Financial Institutions and Consumer Credit has scheduled a hearing titled “The State of Bank Lending in America.”
  • On Tuesday, March 28, the Senate Banking, Housing, and Urban Affairs Committee has scheduled a hearing titled “Fostering Economic Growth: The Role of Financial Companies.”
  • On Wednesday, March 29, the House Financial Services Subcommittee on Capital Markets, Securities, and Investment has scheduled a hearing titled “Examining the Impact of the Volcker Rule on the Markets, Businesses, Investors, and Job Creators.”

Regulatory Activity

SEC Settles Trade Rules; Shortens Time Frame to Two Days

Last week, the Securities and Exchange Commission (SEC) adopted a rule that will require financial firms to settle their trades within two days – rather than three – beginning this September. In a unanimous decision by the SEC’s two commissioners, Michael Piwowar and Kara Stein, the rule change would generally mean that when an investor buys a security, that investor’s brokerage firm must receive payment from the investor no later than two business days after execution of the trade. Affected securities include stocks, bonds, municipal securities, exchange-traded funds, certain mutual funds, and limited partnerships that trade on an exchange.

FDIC Announces Meeting of Advisory Committee on Community Banking

On Tuesday, March 28, the Federal Deposit Insurance Corporation (FDIC) will hold a meeting of its Advisory Committee on Community Banking. Senior staff plans to discuss and provide updates on the FDIC’s Community Banking Initiative, Applying for Deposit Insurance: A Handbook for Organizers of De Novo Institutions, credit risk trends and supervisory expectations, as well as the Youth Savings Pilot and Symposium. There also will be a presentation on the Report to Congress on the Regulatory Review under the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA), which was issued last week. That report describes several joint actions planned or taken by the federal financial institutions regulators.

CFPB Credit Union Advisory Council to Meet This Week

On Thursday, March 30, the Consumer Financial Protection Bureau’s (CFPB) Credit Union Advisory Council (CUAC) will meet to discuss the CFPB’s requests for information on alternative data and consumer access to financial records. The meeting will feature remarks from Director Richard Cordray and discussion with CUAC members.