An executive order signed by President Biden in early July is expected to bring more scrutiny of banking mergers, a significant development given that the number of deal announcements continues to gain steam heading into the second half of the year. The order encourages the Department of Justice, the Federal Reserve, the Federal Deposit Insurance ... READ MORE >
CHART OF THE DAY: U.S. household net worth surges, but the gains are uneven
The financial condition of U.S. households continued to improve in the first quarter, according to recent data released by the Federal Reserve. The net worth of households increased by nearly $5 trillion, or 3.8%, from the previous quarter to a record of $136.9 trillion, according to the data. On a year-ago basis, U.S. household net worth increased by $25.5 ... READ MORE >
5 key themes from SEC Chair Gary Gensler’s House testimony
With Gary Gensler sworn in as the head of the Securities and Exchange Commission in April, the direction of the agency under his leadership is now beginning to take shape. This was especially clear during the third and final House Financial Services Committee hearing Thursday on the surge in meme stock trading fueled by social media earlier this ... READ MORE >
Federal Reserve to end supplemental leverage ratio capital break
The Federal Reserve announced on Friday that it would not extend an important rule accommodation put in place last spring that helped banks continue to lend to small and medium-size businesses as the economic effects of the pandemic took hold. The rule change allowed banks to exclude Treasury securities and deposits with the Federal Reserve from a ... READ MORE >
CHART OF THE DAY: Deflating the hype on inflation
As the economy continues to recover and is poised for a period of robust expansion, the conversation continues to shift toward the outlook for inflation. While we expect the year-ago effects brought on by the global pandemic to result in a period of moderate reflation in the economy, the longer-term outlook implies that elevated inflation will be ... READ MORE >
Short-term rates and economic expansion at risk without Fed’s SLR extension
With the economic recovery still in its early stages, an important component of the Federal Reserve’s response to the economic collapse last spring is in danger of expiring. It’s called the supplemental leverage ratio, or SLR, and the Fed lowered it last spring to help banks maintain liquidity and continue lending through the deepening crisis. In the ... READ MORE >
CHART OF THE DAY: How stablecoins are helping lay the groundwork for digital currencies
For much of the short history of digital assets like bitcoin, their buyers have used them mostly as a store of value -- like gold. Their price volatility is one reason that they have not gained greater acceptance as a means of exchange, like a traditional currency. But there are signs that is about to change with the rise of stablecoins -- or digital ... READ MORE >
Comptroller of the Currency puts the fair access rule on hold
The Office of the Comptroller of the Currency (OCC) has put a hold on its recently issued fair access rule, the agency announced. The rule, which would have barred banks from denying loans to businesses on political or ideological grounds, passed two weeks ago under acting Comptroller Brian Brooks, but was widely criticized across the banking ... READ MORE >
How regulatory oversight may change at five agencies under Biden
With President Biden’s cabinet taking shape, regulated entities in the financial services industry like banks, specialty lenders and capital markets firms are starting to get a better picture of what changes might be in store. For these firms, the question is no longer if regulations will change, but how much they will change. With control in the ... READ MORE >
With added benefits, lenders stand ready to roll out more fiscal aid
Congress’ approval of another round of fiscal aid is providing a ray of hope for borrowers and customers of financial institutions as they look to move on from a difficult year. The legislation provides needed relief for the small businesses most affected by the downturn and customers of financial institutions. It also offers a host of benefits beyond the ... READ MORE >