Federal and State Financial Regulatory Agencies Issue Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by California Wildfires

The Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state regulators, collectively the agencies, recognize the serious impact of Californ…

The Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state regulators, collectively the agencies, recognize the serious impact of California wildfires on the customers and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2021/nr-ia-2021-89.html

Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by California Wildfires

Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by California Wildfires

Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by California Wildfires

Read more / Original news source: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210831a.htm

Agencies issue community bank fintech guidance

A trio of federal agencies have issued community banks guidance with regard to evaluating financial technology (fintech) relationships.© Shutterstock The Federal Reserve System Board of Governors, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency produced Conducting Due Diligence on Financial Technology Firms: A Guide for Community Banks as […]

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A trio of federal agencies have issued community banks guidance with regard to evaluating financial technology (fintech) relationships.

© Shutterstock

The Federal Reserve System Board of Governors, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency produced Conducting Due Diligence on Financial Technology Firms: A Guide for Community Banks as a means of aiding community banks in assessing fintech company risks. It serves as a resource for community banks when performing due diligence measures.

The guidance addresses six areas of due diligence community banks should consider when exploring fintech company arrangements: business experience and qualifications, financial condition, legal and regulatory compliance, risk management and control processes, information security, and operational resilience.

Amid the due diligence process, community banks collect and analyze information to determine whether third-party relationships support community bank strategic and financial goals and if the relationship can be established safely and soundly, in accordance with applicable legal and regulatory requirements.

The Federal Reserve System Board of Governors indicated a community bank tailors how it uses guide information, based on specific circumstances; the risks posed by each third-party relationship; and the related product, service or activity offered by the fintech company. The Fed added that the basic concepts may be useful for various sized banks and other types of third-party relationships.

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Read more / Original news source: https://financialregnews.com/agencies-issue-community-bank-fintech-guidance/

Reps. Ryan, Schakowsky lead bill to boost manufacturing sector

U.S. Reps. Tim Ryan (D-OH) and Jan Schakowsky (D-IL) are among a group of Congress members who introduced legislation designed to create opportunities in the manufacturing sector. © Shutterstock The Manufacturing Reinvestment Corporation Act would create the products, processes, and transition opportunities that are necessary to address the climate crisis, embrace inclusion and empowerment of […]

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U.S. Reps. Tim Ryan (D-OH) and Jan Schakowsky (D-IL) are among a group of Congress members who introduced legislation designed to create opportunities in the manufacturing sector.

© Shutterstock

The Manufacturing Reinvestment Corporation Act would create the products, processes, and transition opportunities that are necessary to address the climate crisis, embrace inclusion and empowerment of non-traditional manufacturing populations, and expand training opportunities in distressed communities.

Specifically, the bill charters the Manufacturing Reinvestment Corporation as the tax-exempt corporate body within the Department of Commerce. The new corporation would be responsible for implementing and overseeing the activities of the national manufacturing strategy. The proposal will be funded by an initial $20 billion appropriation by Congress with installments of $5 billion over the four years after the passage of the legislation.

“It is critical that we provide a comprehensive response to the challenges facing the manufacturing industry in America. We can start moving in that direction today by passing this legislation which includes the creation of a Chief Manufacturing Officer, appointed by the President, who will help provide industry specific advice on tax policies, infrastructure, transportation, regulations, and workforce development,” Ryan, chair of the House Manufacturing Caucus, said. “Retaining, filling, and growing manufacturing jobs in the United States is a complex task that requires deliberate, interconnected action across different federal and state government departments. With new and emerging challenges in artificial intelligence, cybersecurity, and data privacy, addressing these needs will require a high-level strategic response.”

Joining Ryan and Schakowsky as cosponsors of the bill are U.S. Reps. Marie Newman (D-IL), Danny Davis (D-IL), and Ro Khanna (D-CA).

“President Biden’s transformational American Jobs Plan will require many tools in the toolbox to succeed, and with this legislation, we lay out a path to success, growth and resiliency for our manufacturing sector,” said Schakowsky, chair of the Consumer Protection and Commerce Subcommittee of the House Energy and Commerce Committee.

The corporation’s board of directors will be a 15-member body with equal representation from federal agencies and national community stakeholders. Further, the board will be supported by an Advisory Committee consisting of academic and industry experts, public administrators, local community stakeholders, and others at the discretion of the board.

In addition, the corporation achieves the national manufacturing strategy through locally established Manufacturing Renaissance Councils (MRCs), which would be composed of public, private, and community stakeholders. The goal is to establish 30 MRCs over 10 years.

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Read more / Original news source: https://financialregnews.com/reps-ryan-schakowsky-lead-bill-to-boost-manufacturing-sector/

SEC seeking feedback on digital engagement practices used by brokers and advisors

The U.S. Securities and Exchange Commission (SEC) is seeking information and public comment on the use of digital engagement practices (DEPs) by broker-dealers and investment advisers. © Shutterstock Digital engagement practices or DEPs may include behavioral prompts, differential marketing, game-like features (also known as gamification), and other design features that seek to engage retail investors […]

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The U.S. Securities and Exchange Commission (SEC) is seeking information and public comment on the use of digital engagement practices (DEPs) by broker-dealers and investment advisers.

© Shutterstock

Digital engagement practices or DEPs may include behavioral prompts, differential marketing, game-like features (also known as gamification), and other design features that seek to engage retail investors on digital platforms. They also include analytical and technological tools and methods.

“While new technologies can bring us greater access and product choice, they also raise questions as to whether we as investors are appropriately protected when we trade and get financial advice,” SEC Chair Gary Gensler said. “In many cases, these features may encourage investors to trade more often, invest in different products, or change their investment strategy. Predictive analytics and other DEPs often are designed with an optimization function to increase revenues, data collection, or customer time spent on the platform. This may lead to conflicts between the platform and investors.”

The commission is seeking feedback to develop a better understanding of the market practices associated with firms’ use of DEPs and the related analytical and technological tools and methods. The SEC is also hoping to learn what conflicts of interest may arise from optimization practices and whether optimization practices affect the determination of whether DEPs are making a recommendation or providing investment advice.

Further, the request for information is intended to provide a forum for investors, market participants, and other interested parties to share their perspectives on the use of DEPs. This includes potential benefits as well as concerns. Overall, this process will facilitate the SEC’s assessment of existing regulations and help it determine if regulatory action may be needed.

“I’m interested in the varied questions included in the Request for Comment, and I’m particularly focused on how we protect investors engaging with technologies that use DEPs,” Gensler said.

The public comment period will remain open for 30 days following publication of the request in the Federal Register.

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Read more / Original news source: https://financialregnews.com/sec-seeking-feedback-on-digital-engagement-practices-used-by-brokers-and-advisors/

Federal agencies encourage eviction prevention actions

The U.S. Treasury Department, the Department of Justice and the Department of Housing and Urban Development are encouraging state and local government leaders to take eviction prevention actions.© Shutterstock The agencies are imploring states, cities and counties representing Americans facing eviction amid the COVID-19 pandemic that no one should be evicted before having an opportunity […]

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The U.S. Treasury Department, the Department of Justice and the Department of Housing and Urban Development are encouraging state and local government leaders to take eviction prevention actions.

© Shutterstock

The agencies are imploring states, cities and counties representing Americans facing eviction amid the COVID-19 pandemic that no one should be evicted before having an opportunity to apply for rental assistance, and no eviction process should progress until the rental assistance application is processed.

“With lives on the line, it is imperative that we act-at all levels of government-to keep people in their homes and prevent a surge in COVID-19, as well as the long-term economic scarring and poor health consequences that come with eviction,” Secretary of the Treasury Janet Yellen, Attorney General of the U.S. Department of Justice Merrick Garland and Secretary of the Department of Housing and Urban Development Marcia Fudge wrote. “State and local governments play a crucial role as administrators of programs like
Emergency Rental Assistance (ERA) and as leaders of their own housing agencies, judiciary systems and other components of government that are essential to keeping Americans in their homes.”

The Treasury Department is focused on partnering with state and local governments to get Emergency Rental Assistance (ERA) funds processed and into the hands of renters and landlords. The Department of Justice recently forwarded letters to state court Chief Justices and court administrators urging implementation of eviction diversion programs delaying or stopping eviction actions until renters and landlords have had the chance to apply for rental assistance. HUD has required public housing authorities and properties receiving federal project-based rental assistance offer protections providing tenants a chance to receive emergency rent relief and take steps to help prevent evictions.

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Read more / Original news source: https://financialregnews.com/federal-agencies-encourage-eviction-prevention-actions/

Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by Hurricane Ida

Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by Hurricane Ida

Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by Hurricane Ida

Read more / Original news source: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210830a.htm

Federal and State Financial Regulatory Agencies Issue Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by Hurricane Ida

The Office of the Comptroller of the Currency, Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state regulators, collectively the agencies, recognize the serious impact of Hurricane Id…

The Office of the Comptroller of the Currency, Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state regulators, collectively the agencies, recognize the serious impact of Hurricane Ida on the customers and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2021/nr-ia-2021-88.html

Acting Comptroller of the Currency Issues Statement on Civil Money Penalty Against Cadence Bank, N.A. For Violations of the Fair Housing Act

Acting Comptroller of the Currency Michael J. Hsu today released the following statement upon announcement of an enforcement action against Cadence Bank, N.A., Atlanta, for violations of the Fair Housing Act.

Acting Comptroller of the Currency Michael J. Hsu today released the following statement upon announcement of an enforcement action against Cadence Bank, N.A., Atlanta, for violations of the Fair Housing Act.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-87.html

Sen. Toomey seeking ideas and proposals for cryptocurrency bill

U.S. Sen. Pat Toomey (R-PA) is soliciting ideas and proposals to ensure federal law supports the development of emerging cryptocurrency and open blockchain network technologies.© Shutterstock Toomey, ranking member on the U.S. Senate Banking Committee, plans to use the responses to develop legislation that clarifies ambiguity around how existing laws, especially in the tax and […]

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U.S. Sen. Pat Toomey (R-PA) is soliciting ideas and proposals to ensure federal law supports the development of emerging cryptocurrency and open blockchain network technologies.

© Shutterstock

Toomey, ranking member on the U.S. Senate Banking Committee, plans to use the responses to develop legislation that clarifies ambiguity around how existing laws, especially in the tax and securities realms, may apply to cryptocurrencies.

“Rather than trying to ignore or suppress cryptocurrency and related technologies, regulators and legislators alike need to recognize that open, public networks are here to stay. Our laws and regulations must adapt to these developments,” Toomey said. “Not only might cryptocurrency and blockchain technologies be as revolutionary as the internet, they also have the potential to build wealth and financial independence for individuals who are empowered to engage in financial transactions directly with each other, free from oft-costly middlemen. That’s why it’s important Congress gets this right and ensures the United States remains at the forefront of cryptocurrency and fintech innovation.”

The committee will accept proposals from August 26 to September 27. Each proposal should include a brief description of the proposal and how it will encourage the growth of cryptocurrency and blockchain technology in the United States and proposed legislative language. Proposals should address the following topics: securities implications of cryptocurrencies; payments and money transmission supervision; stablecoins; cryptocurrency exchanges; custody regulation; banking authorities; privacy, due process, investor, and consumer protection; decentralized finance (defi); removing existing regulatory ambiguities related to cryptocurrency; and clearly defined goals for appropriate regulations.

“I am hopeful the broad array of legislative proposals I receive will help in crafting thoughtful legislation,” Toomey said.

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Read more / Original news source: https://financialregnews.com/sen-toomey-seeking-ideas-and-proposals-for-cryptocurrency-bill/