Thirty-four banks received passing grades on their stress tests, the first of two examination results set for release this month by the Federal Reserve. Fed Gov. Jerome Powell said the strength of this year’s exam cycle shows that banks would retain strong capital holdings even in the event of a major financial crisis.
The Federal Reserve today is slated to release the first round of its stress test results for 34 major banks. The second round of examination results is scheduled for release next Wednesday.
Commodity Futures Trading Commission member Sharon Bowen (D) announced she’s stepping down from the agency, leaving Acting Chairman Christopher Giancarlo as the CFTC’s sole commissioner. Bowen, whose term is scheduled to expire in 2019, said she will resign “in the next few months, perhaps sooner.”
Speaker Paul Ryan will, for the first time, suggest that he’s willing to consider alternatives to a border adjustment tax on imports — a key component of the House GOP’s tax overhaul plan. In a Tuesday speech to the National Association of Manufacturers, Ryan (R-Wis.) will also emphasize his belief that tax reform must be permanent and passed by Congress this year.
The White House said President Donald Trump plans to nominate James Clinger, the GOP counsel for the House Financial Services Committee, to chair the Federal Deposit Insurance Corp. Trump is said to be planning to nominate Hester Peirce, a financial regulation critic, to an open seat on the Securities and Exchange Commission.
The Treasury Department recommended a significant curbing of authority at the Consumer Financial Protection Bureau, along with allowing the agency’s director to be fired at will, in a report required by an executive order President Donald Trump signed in February. While the report does not call for a full repeal of Volcker Rule limits on proprietary trading, it recommended exempting small institutions from the Dodd-Frank regulation.
The Consumer Financial Protection Bureau announced plans to make changes to its prepaid card rule, with public comments on the proposals due within 45 days. The CFPB’s proposals would adjust the rule to require consumers register any prepaid cards before filing a complaint, and would allow providers to send disclosure forms to consumers digitally in some cases.
The Senate Banking, Housing and Urban Affairs Committee advanced the nominations of Kevin Hassett to lead the Council of Economic Advisers and Pamela Patenaude to be deputy secretary of Housing and Urban Development. Sen. Elizabeth Warren (D-Mass.) was the only panel member to vote against each nominee.
Sen. Elizabeth Warren (D-Mass.) said Senate Democrats are open to working with Republicans on “targeted” measures that would ease regulations affecting community banks and credit unions. Warren, who has shown little willingness to work with the GOP on loosening financial regulations, said she remains opposed to proposals that would limit consumer protections or weaken regulations for big banks.
The Treasury Department recommended a significant curbing of authority at the Consumer Financial Protection Bureau, along with allowing the agency’s director to be fired at will, in a report required by an executive order President Donald Trump signed in February. The report does not call for a complete repeal of Volcker Rule limits on proprietary trading but instead proposes exempting small institutions from the Dodd-Frank regulation.