Honorable Maxine Waters, Chairwoman of the U.S. House Committee on Financial Services, and Honorable Joyce Beatty, Chair of the Subcommittee on Diversity and Inclusion, recently released a report titled, “Diversity and Inclusion: Holding America’s Large Banks Accountable,” which serves as a deep dive into the actions the Committee will take regarding the diversity practices of financial services and a guide for banks and other financial institutions to follow.
a Human Touch
The Perfect Balance
This past Monday, the Federal Reserve Board announced that it plans to develop a new “round-the clock real-time payment and settlement service” called “FedNow Service” that will make it easier and faster to pay bills and transfer money. Because of the advent of new technological advancements such as blockchain, the Federal Reserve has the capacity to modernize the United States’s payment system so that it is both safe and efficient.
In 2018, Congress passed a bill that rolled back reform measures under the Dodd-Frank Wall Street Reform and Consumer Protection Act that required banks and credit unions to report loan characteristics. The measures required lenders to submit reports for 25 or more mortgages and 100 or more home equity loans made per year.
The bill raised the threshold significantly to 500 mortgages and 500 home equity loans per year, which resulted in 85 percent of banks and credit loans being exempted from reporting. This has sparked concern over fairness in lending as some minorities and women are still subject to loan discrimination.
The Office of the Comptroller of the Currency (OCC) released a proclamation to national banks allowing them, under federal law, to close their offices on December 5th, 2018, at their discretion, in any state where the governor has declared a legal holiday honoring the National Day of Mourning for President George H. W. Bush.
The Federal Deposit Insurance Corporation has recently requested comments from individuals and parties interested on issues regarding small-dollar lending and ways to improve small-dollar credit offerings that not only meet customers’ needs and are economically viable but are also underwritten and structured responsibly. Comments for the request for information (RFI) are due no later than 60 days past date of publication, November 14, 2018.
The Federal Deposit Insurance Corporation (FDIC) recently released its guideline for regulatory relief of financial institutions affected by natural disasters in Hawaii. The guide outlines the steps by which it will help these regulated entities make a full recovery from accrued damages.
The Financial Services Committee announced today that the House of Representatives has passed the ‘Economic Growth Regulatory Relief and Consumer Protection Act,” by a 258-159 vote. The new bill is presented as a “pro-growth financial regulatory reform package,” which features a significant number of rollbacks of Dodd-Frank Act regulations since the financial crisis almost a decade ago.
The Federal Deposit Insurance Corporation (FDIC) released remarks from Chairman Martin J. Gruenberg at the Forum on the Use of Technology in the Business of Banking that took place yesterday, May 7th, in Arlington, Virginia. At the forum, banking experts and technology leaders in the industry gathered to discuss how emerging technologies will change banking operations, retail banking, consumer financial data access and more.
The Federal Housing Finance Agency (FHFA) has recently announced a Request for Comments (RFC) regarding proposed amendments to its regulation on the Responsibilities of Boards of Directors, Corporate Practices, and Corporate Governance for all its regulated entities. These amendments will require directors of all entities to have strategic business plans in effect throughout the year, including annual reviews, re-adoption and reporting requirements.
This Wednesday the U.S. Senate passed a bill permitting rollbacks of banking regulations put in place by the Dodd-Frank Act of 2010 following the 2008 financial crisis. The draft legislation was approved by a 67-31 vote and must now pass through the House of Representatives.