![]() ![]() ![]() But as the sector continues to balloon, the Fed is expected to act. While other banking regulators have worked for years to bring fintechs under their regulatory umbrella, the Fed has resisted, fearing doing so could create systemic risks. Fintechs are also lobbying the Fed for access to its payments system. It's exploring how banks intersect with fintechs, particularly with smaller lenders that may outsource more services and infrastructure. The Fed is also expected to tackle a regulatory blueprint for "fintech" companies that are quickly chipping away at the traditional financial sector. Without that certainty, bankers and lawyers have said they would be reluctant to pursue new tie-ups. ![]() The next regulatory chief is expected to lead the committee that scrutinizes potential tie-ups, suggesting any new merger policy may also need her backing. Some pending deals have been approved following Fed Chair Jerome Powell's renomination, but the industry is still waiting for the Fed and the Justice Department to decide on a potential new policy for bank deals. The delay in finding Quarles' replacement may compound a logjam in approving bank tie-ups since last year due to uncertainty over Fed personnel changes. The big question will be whether the Fed pushes for restrictions or stiffer capital requirements on banks with significant exposures to polluting industries or other climate-specific risks.įed officials may end up treading more carefully than progressives had hoped, as Raskin's nomination was ultimately sunk by concerns she would push too aggressively on climate risk. Those projects are expected to accelerate. So far, the Fed has asked lenders to explain how they are mitigating climate change-related risks to their balance sheets, with the industry expecting to progress to a formal climate change scenario analysis in 2023, Reuters has reported. CLIMATE CHANGE RISKSĬlimate change, a top policy priority for Democrats, is expected to rapidly rise on the Fed agenda under new leadership. Even if Raskin had been confirmed quickly, the process of overhauling many of these rules was expected to be extremely time-consuming. Whoever replaces Quarles would have to pick which of these to address. Democrats accused Quarles of saving Wall Street billions of dollars while increasing systemic risks, and they want the Fed to revisit some of those changes.Īmong the most contentious were revisions to the “Volcker Rule” curbing speculative bank investments scrapping a requirement for big banks to hold capital against certain swap trades and stripping the Fed of its power to fail banks on their annual “stress tests” based on subjective concerns. Over the past four years, Quarles led a review of regulations introduced following the 2007-2009 global financial crisis, arguing they were too blunt and onerous. Here is the regulatory agenda that will fall to a confirmed vice chair: read moreĪ Fed controlled by Democrats will pursue the same broad agenda regardless of who is in the supervision seat, and staff and governors may be able to work on some measures while the White House figures out a new nominee, analysts said.īut major policy decisions will need to be led and backed by a confirmed Fed official to gain support in Congress. ![]() House of Representatives, which includes Carroll, Montgomery and Frederick counties.WASHINGTON, March 16 (Reuters) - Sarah Bloom Raskin's decision Tuesday to withdraw her nomination as the Federal Reserve's Wall Street cop further delays rule changes that have been in limbo since Randal Quarles stepped down as vice chair for supervision in October. She was approved unanimously by the Senate to both positions.īloom’s husband, Jamie Raskin, represents Maryland’s 8th District in the U.S. Raskin previously served as Fed governor from 2010 through 2014 and then as the deputy Treasury secretary. “Sadly, the American people will be denied a thoughtful, experienced public servant who was ready to fight inflation, stand up to Wall Street and corporate special interests, and protect our economy from foreign cyberattacks and climate change,” Brown said. 2 post, and economists Lisa Cook and Philip Jefferson for positions on the board. The president has also nominated Lael Brainard, a Fed governor, for the central bank’s No. Biden has nominated Powell, who is now serving as acting chair, to a second four-year term. Sherrod Brown, the Ohio Democrat who is chairman of the Banking Committee, said the panel would vote on Biden’s four other nominees for the Fed, who were also delayed by the Republicans’ boycott. ![]()
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