\nThe update comes to you a day late as we were quiet observing the Memorial Day Holiday. With both the House and Senate in Recess this week, lobbyist and staff get a chance to catch their breaths and prepare for the next five weeks – which are shaping up to be busy on a number of fronts, but especially for those involved in the Ex-Im battle as the June 30th deadline is fast approaching. \n<\/p>\n
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\nNear Term<\/strong>\n<\/p>\n \nFurther Out<\/strong><\/p>\n The update comes to you a day late as we were quiet observing the Memorial Day Holiday. With both the House and Senate in Recess this week, lobbyist and staff get a chance to catch their breaths and prepare for the next five weeks – which are shaping up to be busy on a number […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,7],"tags":[],"acf":[],"yoast_head":"\n\n
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\nThe Past Week<\/strong>
\nLegislative Branch<\/strong>
\nHouse<\/strong>
\nHensarling Supoenas Fed in Leak Probe<\/u><\/em>
\nOn Thursday, Chairman Hensarling issued a subpoena<\/a> to the Federal Reserve as part of the Committees ongoing investigation about whether potentially market moving information was prematurely released. Ranking Member Waters criticized<\/a> the subpoenas as “politicizing” and “having a chilling effect” on the already ongoing DOJ investigation.
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\nFinancial Services Committee Marks-up Baker’s Dozen of Capital Markets Legislation<\/u><\/em>
\nOn Wednesday the Financial Services Committee marked up thirteen bills that had been discussed at Capital Markets subcommittee the week before. Multiple Democratic members used the hearing as a forum to call for the renewal of the Ex-Im Bank and Chairman Hensarling announced that the Committee would be holding a hearing on the issue during the first week of June.
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\nThe approved bills were:<\/p>\n\n
\nFinancial Services Subcommittee Wades into Cybersecurity Debate<\/u><\/em>
\nOn Tuesday, the Financial Institutions and Consumer Credit Subcommittee held a hearing entitled, “Protecting Critical Infrastructure: How the Financial Sector Addresses Cyber Threats.” Witnesses included representatives from various financial services trade associations. During the hearing the subcommittee discussed how nation-state attacks differ from individual criminal attacks, whether the Chip & Pin card system will limit the risk of data breach and whether additional regulations were necessary.
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\nTaskforce Holds Hearing on Nexus Between Terrorists and Criminals<\/u><\/em>
\nOn Thursday, the Financial Services Committee Taskforce on Terrorism Financing held a hearing entitled “A Dangerous Nexus: Terrorism, Crime, and Corruption.” The hearing examined the interactions and interconnections of transnational terrorism, crime, and corruption. During the hearing members discussed, among other things how drug trafficking and money laundering in Europe, Africa and South American is used to fund a variety of nefarious actors. In addition, Ranking Members brought up how large, all cash transactions in real estate purchases are being used to launder dirty money and questioned whether more needed to be done to prevent the real estate system from being taken advantage of by criminals and terrorists.
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\nSubcommittee Holds Hearing on Rural Housing<\/u><\/em>
\nOn Tuesday, May 19th<\/sup> the Financial Services Housing and Insurance Subcommittee held a hearing entitled, “Oversight of the Rural Housing Service.” Witnesses included, Tony Hernandez, Director of the Rural Housing Service and Matthew Scire, the GAO’s director of Financial Markets and Community Reinvestment. During the hearing members on both sides of the aisle questioned whether the role of the Rural Housing Services could be equally well served by the FHA.
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\nDemocrats Ask for Hearing on Charges in Flash Crash Probe<\/u><\/em>
\nOn Friday, four Democratic members of the House Financial Services Committee, led by Rep. Stephen Lynch (D-MA) wrote to Chairman Hensarling<\/a> to urge him to hold a hearing to examine whether lax oversight by the SEC and CFTC lead to the 2010 Flash Crash, as well as to shed more light on recent revelations uncovered as part of the arrest of the individual suspected of causing the crash.
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\nDemocrats Push CFPB to Take up Rule on Arbitration<\/u><\/em>
\nOn Thursday, nearly 60 Democratic members of the House and Senate sent a letter to CFPB Director Cordray, urging him<\/a> to take up a rulemaking to prohibit mandatory arbitration contracts in consumer financial services contracts. The letter builds on a report the CFPB issued back in March. In addition the CFPB’s unified agenda released last week indicates that the Bureau continues to examine the issue (see more below in CFPB section).
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\nSenate<\/strong>
\nBanking Committee Passes Shelby’s Reg Reform Bill on Party-line vote<\/u><\/em>
\nOn Thursday, the Senate Banking Committee passed<\/a>, by a 12-10 straight party line vote, Chairman Shelby’s regulatory reform bill. Prognosticators had previously noted that absent the bill getting 3-5 Democrat votes the likelihood that the Senate would devote floor time to the bill was minimal. Despite the perspective of the analysts, Shelby remained optimistic that this was only the first round<\/a> of a longer negotiation. Based on statements by both Shelby and Ranking Member Sherrod Brown (D-OH) it appears that an agreement on a reduced proposal remains possible.
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\nSenate Clears TPA<\/u><\/em>
\nFriday evening, after some tense negotiations, the Senate was able to pass Trade Promotion Authority (TPA) by a vote of 62-37 with 14 Democrats voting affirmatively. The bill will not move to the House where is expected to encounter an even bumpier fight. The move came after Senator McConnell agreed to an up or down vote on the Export Import Bank in order to win the support of key Democratic Senators to shut off debate.
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\nNSA Reauthorization Goes Down — Senate to Come Back on the 31st<\/sup><\/u><\/em>
\nWith members of the Senate itching to get out of town they first had to deal with reauthorizing the NSA. However after the NSA bill backed by the White House and Leader McConnell failed to garner enough votes to get cloture, going down 57-42, it was expected that a two month punt would sail through, as it had already passed the House by a wide margin. Instead the bill failed by a vote of 45-54 setting up the Senate to return Sunday night only hours before the Patriot Act is set to expire.
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\nSelect Highlights from the Administration<\/strong>
\nTreasury<\/strong>
\nFSOC Releases Annual Report<\/u><\/em>
\nOn Tuesday the Federal Stability Oversight Council (FSOC) released its 2015 annual report<\/a>, and gave an indication<\/a> that it would continue to focus on clearinghouses, swap platforms, risk management and cyber threats.
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\nConsumer Financial Protection Bureau (CFPB)<\/strong>
\nBureau Releases Update to Unified Regulatory Agenda<\/u><\/em>
\nOn Friday, the CFPB released its spring 2015 update<\/a> to its unified regulatory agenda. The document indicates that Bureau intends to finish its HMDA update this year. The Bureau also did not offer any indication that the TILA \/ RESPA Integrated Disclosure issue would be delayed beyond the current August 1st<\/sup> effective date. Other issues the CFPB intends to take up this year, though not complete until 2016 include the rule on prepaid financial products and their small dollar lending rule. In addition, it appears that the CFPB continues to actively solicit feedback as to whether it should put forward new rules to govern the use of mandatory arbitration provisions in consumer financial products or services.
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\nSecurities and Exchange Commission (SEC)<\/strong>
\nChief of Staff to Chair White to Resign<\/u><\/em>
\nOn Tuesday, it was announced<\/a> that Lona Nallengara, Chief of Staff to Chair White, would be leaving the SEC at the end of June. Mr. Nallengara has been at the SEC for the past four years. According to news accounts<\/a> his next move is still to be determined.
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\nFederal Reserve <\/strong>
\nFed Seeks Comment on NACHA Proposal<\/u><\/em>
\nOn Thursday the Fed announced that it was seeking comment by July 2nd<\/sup> on a proposal put forward by NACHA to determine whether the NACHA proposal allows for receiving institutions to appropriately recoup costs while simultaneously expanding the adoption of the Fed’s same-day automated clearing house (ACH) service.
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\nDepartment of Justice (DOJ)<\/strong>
\nSix Banks Plead Guilty to Rigging Foreign Exchange Markets<\/u><\/em>
\nOn Wednesday six banks agreed to plead guilty to felony charges that the banks conspired to manipulate various foreign exchange markets in the United States and Europe. In addition to the guilty pleas the banks agreed to pay $5.8 billion in fines, though in a closed session the SEC granted all parties waivers to continue existing business lines. Shortly after the announcement Senator Warren (D-MA) called for hearings<\/a> by the Department of Labor to examine whether or not these banks should be allowed to manage retirement accounts.
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\nNext Week’s Schedule<\/strong>
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\nThe House and Senate are in Recess for the Memorial Day District Work Period<\/p>\n","protected":false},"excerpt":{"rendered":"