US Bank Regulatory News – Page 2 – News about Bank regulations in the USA

Rep. McHenry looks to bring Renter Protection Act to House floor for vote

U.S. Rep. Patrick McHenry (R-NC), the top Republican on the House Financial Services Committee, filed a discharge petition to force consideration of the Renter Protection Act, on the House floor. © Shutterstock This bill, H.R. 3913, seeks to expedite payments from the the $46 billion in Emergency Rental Assistance money so it can be used […]

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U.S. Rep. Patrick McHenry (R-NC), the top Republican on the House Financial Services Committee, filed a discharge petition to force consideration of the Renter Protection Act, on the House floor.

This bill, H.R. 3913, seeks to expedite payments from the the $46 billion in Emergency Rental Assistance money so it can be used to pay off any outstanding back rent and remove the threat of eviction from COVID-impacted renters. McHenry said it is being brought forth due to the Democrats’ failure to address what he called the Biden Administration’s mismanagement of the Emergency Rental Assistance (ERA) programs.

“Congress promised relief to renters and property owners impacted by the pandemic,” McHenry said. “Due to the Biden Administration’s mismanagement and Congressional Democrats’ inaction, American families have been left twisting in the wind. Republicans have been offering a commonsense solution for months—the Renter Protection Act—to fix the ERA programs, make mom-and-pop property owners whole, and end the threat of eviction. This discharge petition will force Congress to finally keep the promise we made to renters and property owners almost one year ago.”

The Renter Protection Act of 2021 would reform the ERA programs by consolidating them into one unified program with one set of rules. Thus, it would transfer all remaining March 2021 ERA program funds into the original December 2020 ERA program and requires Treasury to disburse the funds within 30 days.

Further, it would require that cities and states with any unused ERA money use those funds to pay off the back-rent debts of COVID-impacted eligible households. Finally, it would reinstate the original Dec. 31, 2021 deadline for cities and states to distribute all ERA funds to COVID-impacted eligible households.

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IRI advocates retirement savings plan measure

Insured Retirement Institute (IRI) officials said the organization supports proposed House Ways and Means Committee legislation that would result in small business workers gaining workplace retirement savings plan access. Per the IRI, the bill would also present employees with the opportunity to choose a protected lifetime income solution within a plan similar in scope to […]

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Per the IRI, the bill would also present employees with the opportunity to choose a protected lifetime income solution within a plan similar in scope to benefits offered by a more traditional pension — adding the proposed legislation is spearheaded by
House Ways and Means Committee Chairman Rep. Richard Neal (D-MA).

“We appreciate Chairman Neal’s steadfast leadership and advocacy of this legislation to help America’s workers, retirees, and their families build economic equity, strengthen financial security, and protect income in a sustainable manner to last throughout retirement years,” IRI President and CEO Wayne Chopus said. “We look forward to working with Chairman Neal and other supporters to enact this important initiative.”

According to the proposed measure, employers with five employees or more would be required to provide or arrange for access to an automatic retirement contribution plan for all full-time and long-term part-time employees.

Additionally, employers would be required to offer employees with at least a $200,000 vested retirement account balance the option to take a distribution of up to 50 percent of savings to purchase a lifetime income solution.

“Policymakers have created numerous incentives, options and mechanisms for employers to offer workplace retirement plans. But too many employees, particularly those who work for small businesses, are still not covered by a plan,” Chopus said. “This puts too many workers in jeopardy of not saving enough for retirement, which can last 20 or 30 years or longer. We need to take additional steps to address the inequitable access to an effective means to accumulate retirement savings and this legislation is a common-sense step to do just that.”

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Read more / Original news source: https://financialregnews.com/iri-advocates-retirement-savings-plan-measure/

CFPB examines college credit card agreement decline

A new report from the Consumer Financial Protection Bureau (CFPB) said the market for college credit cards continued its general declining trend in 2020. The 12th annual college credit card report found that agreements with alumni associations made up the largest share of the market in terms of the number of agreements, accounts and amounts […]

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A new report from the Consumer Financial Protection Bureau (CFPB) said the market for college credit cards continued its general declining trend in 2020.

The 12th annual college credit card report found that agreements with alumni associations made up the largest share of the market in terms of the number of agreements, accounts and amounts of payments made by issuers to their counterparties. The report revealed that the total volume of payments by issuers decreased to $20,882,930, from $24,980,457 in 2019 while 10 percent of active 2019 agreements were terminated during the year.

“The CFPB remains steadfast in its efforts to ensure our financial markets work for consumers, responsible providers, and the economy as a whole, especially for students,” CFPB Acting Director Uejio said. “Our duty to collect and publish data on these credit card agreements supports transparency and an informed public.”

The report was issued in accordance with Credit Card Accountability, Responsibility, and Disclosure Act (CARD Act) requirements. The CARD Act requires credit card issuers to annually submit to the CFPB the terms and conditions of any college credit card agreement in effect at any time during the preceding calendar year between an issuer and an institution of higher education.

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NCUA details financial performance data

National Credit Union Administration (NCUA) financial performance data maintains federally insured credit unions reported net income growth of $11.9 billion in the second quarter of 2021.© Shutterstock Officials indicated the rise in net income is attributed to growth in other operating income and a decrease in provisioning for loan, lease and credit loss expenses — […]

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National Credit Union Administration (NCUA) financial performance data maintains federally insured credit unions reported net income growth of $11.9 billion in the second quarter of 2021.

Officials indicated the rise in net income is attributed to growth in other operating income and a decrease in provisioning for loan, lease and credit loss expenses — determining insured shares and deposits increased $196 billion, or 14.2 percent, to $1.58 trillion in comparison to the second quarter of 2020.

The number stem from the NCUA’s Quarterly Data Summary Report focusing on the second quarter of 2021.

“During the second quarter of 2021, the credit union system, as a whole, remained on a solid footing,” NCUA Chairman Todd M. Harper said. “While the economic outlook shows signs of improvement, COVID-19 pandemic-relief programs are coming to an end and may result in uncertainty in the months ahead. Additionally, the pandemic’s economic disruptions hit the poorest households hardest. For these households, the recovery could take longer. The top priority for credit unions should be managing their operational and financial risks while continuing to work with members who are struggling.”

The analysis showed federally insured credit unions net income in the second quarter of 2021 totaled $21.3 billion at an annual rate, up $11.9 billion from the second quarter of 2020; total loans outstanding increased $56.6 billion over the year to $1.19 trillion; and the federally insured credit unions delinquency rate was 46 basis points in the second quarter of 2021, in comparison with 58 basis points in the second quarter of 2020.

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Read more / Original news source: https://financialregnews.com/ncua-details-financial-performance-data/

CSBS unveils financial regulatory system modernization legislation

The Conference of State Bank Supervisors (CSBS) is encouraging state adoption of the Uniform Money Transmission Modernization Act as part of an effort to modernize the state financial regulatory system.John Ryan The measure seeks to replace 50 sets of state-specific money transmitter laws and rules with one single set of nationwide standards and requirements via […]

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John Ryan

The measure seeks to replace 50 sets of state-specific money transmitter laws and rules with one single set of nationwide standards and requirements via state and industry experts, according to the CSBS.

“This model law streamlines regulation for an evolving payments space where the number of companies operating nationwide has doubled since 2015,” CSBS President and CEO John W. Ryan said. “States that implement the model law will be better positioned to regulate new developments in a rapidly changing financial services market.”

Officials indicated state financial agencies supervise 79 percent of the nation’s banks and serve as the primary regulator of the nonbank financial sector — including mortgage lenders and servicers, consumer finance companies, debt collectors and money transmitters.

The legislation is also known as the Money Transmitter Model Law, officials noted, adding it establishes a common regulatory floor for money transmission that includes stored value, sale of payment instruments and transmission of fiat and virtual currency.

Per the CSBS, companies offering digital wallets, prepaid cards, money orders and cash or virtual currency transmissions are slated to benefit from the law’s standardized and risk-based requirements. Additionally, authorities maintain customers will benefit from strong consumer protections that cross state lines.

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OCC to Hold Hearing on Charges Against Former Wells Fargo Bank, N.A. Executives; Agency Seeks Prohibition Order, Orders to Cease and Desist, and Civil Money Penalties

The Office of the Comptroller of the Currency (OCC) today announced a public hearing before an Administrative Law Judge beginning Monday, September 13, 2021, in Sioux Falls, S.D.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-96.html

ICI releases 401(k) activity study findings

A new study from Investment Company Institute (ICI) found that Americans continued to save for retirement through their 401(k) plans despite ongoing COVID-19 pandemic economic stresses.© Shutterstock ICI’s Defined Contribution Plan Participants’ Activities, First Half 2021 breakdown tracks contributions, withdrawals and other 401(k) activity based on defined contribution (DC) plan recordkeeper data addressing over 30 […]

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A new study from Investment Company Institute (ICI) found that Americans continued to save for retirement through their 401(k) plans despite ongoing COVID-19 pandemic economic stresses.

ICI’s Defined Contribution Plan Participants’ Activities, First Half 2021 breakdown tracks contributions, withdrawals and other 401(k) activity based on defined contribution (DC) plan recordkeeper data addressing over 30 million participant accounts in employer-based DC plans at the end of June 2021.

“Despite the economic challenges over the past year and a half, retirement savers show deep commitment to preserving their retirement nest eggs,” Sarah Holden, ICI senior director of retirement and investor research, said. “The combination of ongoing contributions and few participants taking withdrawals reflects DC plan participants’ long-term mindset and preference to keep this money earmarked for retirement and avoid dipping into it.”

The study found most DC plan participants continued their path regarding asset allocations, with stock values generally rising during the first six months of the year. In addition, it revealed that DC plan withdrawal activity remained low during the first half of the year, similar to activity observed in the first half of 2020. Finally, the study indicated that DC plan participants’ loan activity declined in the second quarter of 2021. At the end of June 2021, 13.5 percent of DC plan participants had loans outstanding, in comparison to 14.3 percent at the end of March 2021.

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Read more / Original news source: https://financialregnews.com/ici-releases-401k-activity-study-findings/

Intercontinental Exchange, ADP team up to help investors navigate muni bond market

Intercontinental Exchange, the company that owns the New York Stock Exchange, and human resources company ADP are launching a new service designed to help investors better assess the stability and creditworthiness of issuers in the U.S. municipal bond market.© Shutterstock The new service links human resources and compensation data from ADP directly to more than […]

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The new service links human resources and compensation data from ADP directly to more than one million municipal bonds covered by ICE’s reference data service. This will allow municipal bond investors to assess a wide range of dynamics that could impact a municipal issuer.

“This data is incredibly powerful and can be used by market participants to drill into the financial stability of a municipal issuer,” Lynn Martin, president of fixed income & data services at ICE, said. “ADP’s human capital data is impressive in its timeliness and breadth of coverage, and by linking it to our municipal fixed income data, we’re able to give investors and market participants convenient access to a broad set of alternative datasets to better understand the implications and risks of their investments.”

Users will have access to granular aggregated and anonymized human capital data, including average gross pay, total projected income, average commute distance, details into specific job sectors, and more than 50 other distinct fields. Further, the data can be used to see trends over time to help users see how a municipality or region’s population changed over time. The data will be consistently updated with ADP’s anonymized and aggregated data.

“Our work with ICE highlights that ADP’s anonymized and aggregated data can help investors discover and better understand the U.S. municipal bond environment,” Jack Berkowitz, chief data officer at ADP, said. “ADP serves more than 900,000 clients worldwide, including approximately 75% of the Fortune 500. Our depth of information and data makes us a powerful input for real-time socioeconomic analysis.”

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Nation’s banks see solid earnings growth in second quarter

The nationʻs banks had a strong quarter as they generated net income of $70.4 billion in second quarter, an increase of $51.9 billion, or 281 percent, from the second quarter of 2020, according to data from the Federal Deposit Insurance Corporation (FDIC).© Shutterstock The FDIC aggregates the performance of the nationʻs 4,951 commercial banks and […]

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The FDIC aggregates the performance of the nationʻs 4,951 commercial banks and savings institutions each quarter.

The increase was driven by further economic growth and improved credit conditions and lower provision from credit losses. The banking industry reported an aggregate return on average assets ratio of 1.24 percent, up 89 basis points from a year ago. However, this total was down 14 basis points from first quarter 2021.

Also, the average net interest margin (NIM) contracted 31 basis points from a year ago to 2.50 percent – the lowest level on record. This was accompanied by a decline in net interest income of $2.2 billion, OR 1.7 percent, from the same quarter a year ago.

“The banking industry reported strong earnings in second quarter 2021, supported by continued economic growth and further improvements in credit quality,” FDIC Chair Jelena McWilliams said.

In addition, community banks, which make up the bulk of FDIC-insured banks, reported annual net income growth of $1.9 billion, supported by a decline in provision expense and an increase in net interest income. Provision expenses declined $2.3 billion, or 98.1 percent, from a year ago and $345.1 million, 88.2 percent, from the previous quarter. Also, loan volumes increased slightly, 0.3 percent, driven by an increase in credit card balances. Overall, 53.1 percent of 4,490 FDIC-insured community banks reported higher quarterly net income.

Finally, three new banks opened in the quarter while 28 institutions merged with other FDIC-insured institutions. No banks failed in second quarter 2021.

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Organization urging SEC antitrust disclosure integration

The Center for American Progress (CAP) is urging the Securities and Exchange Commission (SEC) to integrate antitrust disclosures into its environmental, social and governance (ESG) regulatory framework.© Shutterstock CAP maintains that requiring firms to disclose markers of market power would help socially conscious investors identify firms engaging in anti-competitive behavior, in addition to helping investors […]

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CAP maintains that requiring firms to disclose markers of market power would help socially conscious investors identify firms engaging in anti-competitive behavior, in addition to helping investors escape economic shocks in the wake of antitrust enforcement.

“Requiring antitrust disclosures is well within the mission and legal authority of the SEC,” Marc Jarsulic, a senior fellow and chief economist at CAP, said. “Requiring companies to disclose markers of their anti-competitive behavior would not only be a boon to investors, but examining them in the aggregate would also allow policymakers and the public to better understand the pervasiveness of anti-competitive behavior in the United States.”

Statistical markers identified by CAP, per officials, include ratio of market value to replacement cost of capital; profit margin; ratio of net investment to profits; and labor share in firm value added.

CAP also noted antitrust disclosure integration would ease the process of lawmakers, regulators and antitrust agencies identifying firms and areas where competition is weak, thereby improving capital markets overall functioning.

And requiring the disclosures is consistent with the mission of the SEC and well within its legal authority, per CAP.

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