Daily News Digest

 

July 18, 2019


American Banker

  • The Financial Accounting Standards Board voted on Wednesday to extend the deadline for conversion to the Current Expected Credit Loss methodology to January 2023 for all but the nation’s biggest publicly traded banks. FASB is also laying plans to consult with banks registered with the Securities and Exchange Commission — those lenders must still comply next January — auditors and regulators in hopes of identifying points of confusion and unnecessary procedures.
  • Banking regulators announced Wednesday that they will not penalize certain foreign banking firms under the Volcker Rule for an additional two years.
  • The Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. issued a joint statement extending the longstanding moratorium on enforcing the proprietary trading ban for certain foreign funds organized outside the U.S. 

 

Reuters

  • The Trump administration’s hotly anticipated blueprint for overhauling mortgage guarantors Fannie Mae and Freddie Mac may not be published until September as the U.S. Treasury juggles several other pressing issues, said Mark Calabria, director of the Federal Housing Finance Agency. Mr. Calabria said in an interview it was his “hope” that they would have exited or be ready to exit conservatorship before his term ends in 2024. 

 

Politico

  • The Consumer Financial Protection Bureau issued an updated advisory Wednesday urging financial institutions to report suspected financial exploitation of older people to government authorities. The 25-page notice updates a 2016 advisory on reporting to local, state and federal authorities.
  • The CFPB is reevaluating its process of examining financial institutions, Director Kathy Kraninger said Wednesday, as part of a broader review of how the agency does business. Kraninger also said she is in talks with the Federal Housing Finance Agency and Treasury Department about the fate of the Qualified Mortgage patch, which expires in January 2021. The patch allows loans purchased or guaranteed by Fannie Mae and Freddie Mac to exceed the bureau's 43 percent debt-to-income requirement.
  • The state attorneys general of New York, New Jersey and Connecticut joined forces Wednesday, filing a new lawsuit against the Internal Revenue Service to try to undo the reinforced $10,000 federal cap on deductions for state and local taxes in high property tax states.

 

The Wall Street Journal

  • The House of Representatives overwhelmingly voted to repeal the “Cadillac tax” on high-cost employer health insurance, removing a piece of the Affordable Care Act that never took effect and delivering a victory to labor unions and employers that teamed up against the tax. 

 

Crain's

  • New York's first new state-chartered bank in 11 years, Piermont Bank, opened its doors Wednesday. Piermont's arrival coincides with a boom in banking visible across New York City, which now has more branches than before the financial crisis.





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