The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency could still issue a joint proposal for reforming the Community Reinvestment Act, according to Fed Chair Jerome Powell. The OCC and the Fed announced their own plans last year and the three agencies are still discussing how they could work together on a plan, according to Powell.
Federal Reserve Chair Jerome Powell told a House Financial Services Committee hearing that the Fed plans to further explore the concept of a digital dollar through public events. "This is going to be the year in which we engage with the public pretty actively," Powell said.
The Consumer Financial Protection Bureau will likely change or rescind the Seasoned QM rule issued by former director Kathy Kraninger in December, which removes key metrics indicating a borrower's ability to repay the loan, according to Patricia McCoy, a professor at Boston College Law School and former CFPB employee. McCoy said the agency's statement on Tuesday that it may revisit the rule is telling, noting: "If they're signaling it, they don't say that lightly."
Capital One Financial is raising credit limits for some credit card customers with prime and subprime credit scores in the hopes it will grow revenues, according to CEO Richard Fairbank. Loan growth for the credit card business has been stymied during the pandemic by consumers who are paying down their credit card debt.
Regions Financial is focusing on purchases of non-bank entities and is not interested in bank deals that are "disruptive" and "often times not successful," said CEO John Turner. Regions' acquisition of equipment-financing company Ascentium Capital allowed the bank to tap into some of Ascentium's bank-end technology, Turner said.
Several state attorneys general promised to be tougher on consumer protection violations during the Trump administration, but enforcement actions brought at the state level actually declined from an average of 60 per year in 2016 and 2017 to 31 for the following three years, according to law firm Goodwin Procter. Joint investigations between the Consumer Financial Protection Bureau and states are expected to increase during the Biden administration.
Former Treasury Secretary Steven Mnuchin is developing an investment fund and seeking sovereign wealth backing from Arabian Gulf states, sources say. The fund reportedly will focus on sectors including fintech and entertainment.
The deregulation of electricity suppliers in Texas promised to lower costs for customers, but an analysis of Energy Information Administration data by The Wall Street Journal finds they have paid $28 billion more over the past two decades than they would have under traditional suppliers. There are concerns that customer bills will go even higher following the state's recent outages.
The Federal Reserve is close to making a decision on whether to extend relief on banks' capital requirements, Chairman Jerome Powell told lawmakers, a move opposed by Senate Democrats who say banks that have made payouts to shareholders should not continue to benefit from the relaxed requirements. The measure, due to expire March 31, was issued last year to help banks manage the effects of the coronavirus pandemic.