Finance Brief: Week in Review & What’s Ahead

Week in Review

Dodd-Frank overhaul

  • The House voted 233 to 186 to pass the Financial CHOICE Act, a bill that would make significant changes to key parts of the the 2010 Dodd-Frank Act. In the mostly party-line vote, Rep. Walter Jones (N.C.) was the only Republican to vote against the measure. No Democrats voted for it.
  • After the vote, President Donald Trump congratulated House Financial Services Committee Chairman Jeb Hensarling (R-Texas), the bill’s author, by tweeting: “Congratulations to Jeb Hensarling & Republicans on successful House vote to repeal major parts of the 2010 Dodd-Frank financial law. GROWTH!”
  • Substantive policy differences make it unlikely that the Senate will pass the measure. Senate Banking Committee Chairman Mike Crapo (R-Idaho) called the CHOICE Act a “significant and thoughtful effort to improve our financial regulatory system,” but he stopped short of saying the Senate will take up the legislation.

Fiduciary rule

  • The core principle of the Labor Department’s fiduciary rule took effect on Friday, with operational components slated for implementation in January.
  • Labor Secretary Alex Acosta told a House panel that the Labor Department initiated its review of the fiduciary rule by requesting information from the Office of Management and Budget about the regulation. Acosta suggested that the Labor Department did not adequately consider stakeholder comments when the rule was finalized during the Obama administration.

Executive nominations 

  • The White House said President Donald Trump intends to nominate Joseph Otting to serve as comptroller of the currency. Otting is former chief executive of OneWest Bank, where he was a close associate of Treasury Secretary Steven Mnuchin.

Securities and Exchange Commission

  • SEC Chairman Jay Clayton named Steven Peikin and Stephanie Avakian as co-directors of the agency’s enforcement division. Avakian had been the SEC’s acting enforcement director, and Peikin most recently worked at the law firm Sullivan & Cromwell LLP, where he represented banks such as Barclays Plc and Goldman Sachs Group Inc.
  • Dalia Blass, an attorney at the law firm Ropes & Gray LLP, is set to join the Securities and Exchange Commission as the agency’s top regulator of mutual funds and exchange-traded funds. Blass’ husband is about to step down as the top lawyer for the Investment Company Institute, a Washington-based trade group that represents the mutual fund industry.

What’s Ahead

  • Trump is expected to pick Randal Quarles, a former Treasury Department official during the George W. Bush administration, as his nominee for the Federal Reserve’s vice chair for supervision. Trump also is slated to nominate former Richmond Fed economist Marvin Goodfriend for a seat on the Fed’s Board of Governors.
  • The Senate Banking Committee is scheduled to hear testimony this week from banking industry experts on how Congress can enact policies that encourage economic growth. The hearing is one of several that Crapo has planned on the issue, which he has framed as the Senate’s answer to deregulatory efforts in the House.
  • The Senate Banking Committee is slated to vote this week on Trump’s nominees for chairman of the Council of Economic Advisers and the deputy secretary of Housing and Urban Development.
  • The House Financial Services might hold a markup as soon as this week on legislation that would reauthorize and overhaul the National Flood Insurance Program.
  • Treasury Secretary Steven Mnuchin is expected to testify this week before two House Appropriations subcommittees regarding the Treasury Department’s budget request for fiscal year 2018.

Events Calendar (All Times Local)

Century Foundation event on wages with Rep. Kaptur, Sen. Casey 12 p.m.
House Appropriations subcommittee hearing with Treasury’s Mnuchin 4 p.m.
SEC online seminar for Investment Company and investment adviser senior officers 9 a.m.
Peterson Institute event on NAFTA renegotiation 10 a.m.
Senate Banking Committee to vote on CEA, HUD nominees 10 a.m.
House Appropriations subcommittee hearing with Treasury’s Mnuchin 10 a.m.
Senate Banking Committee hearing on regional and large banks 10 a.m.
FSR event on financial regulation in the Trump administration 10 a.m.
Cato Institute event on financial crisis and GSEs 11 a.m.
National Economists Club discussion with economist Anthony Elson 12 p.m.
FDIC teleconference on liquidity risk and funds management 2 p.m.
Harvard event on state of nation’s housing 12 p.m.


Morning Consult Finance Top Reads

1) White House plans nominations to key posts, including comptroller of the currency
Leslie Shaffer, CNBC

2) GOP Report: Lawmakers Should Consider Holding CFPB’s Cordray in Contempt
Yuka Hayashi, The Wall Street Journal

3) Trump Said to Pick Nominees for 2 Positions on Fed Board
Binyamin Appelbaum and Kate Kelly, The New York Times

4) SEC to Hire Dalia Blass as Top Regulator of Mutual Funds and ETFs
Dave Michaels, The Wall Street Journal

5) Fiduciary Rule Is Now (Partially) in Effect
Yuka Hayashi, The Wall Street Journal

6) Rules panel clears Dodd-Frank rewrite for House vote
Sylvan Lane, The Hill

7) Nevada Becomes First US State to Ban Blockchain Taxes
Stan Higgins, CoinDesk

8) Three Dodd-Frank changes that could actually pass Congress
Ian McKendry, American Banker

9) Did Deregulation Cause the Financial Crisis? Examining a Common Justification for Dodd-Frank
The Mercatus Center

10) Why our credit cards keep getting hacked
Elizabeth Weise, USA Today