Insights: Financials

Bank Capital/Liquidity

The Fed’s work to shift the direction of bank capital/liquidity requirements has begun to accelerate, with the release of its proposed changes to stress testing last week and what Vice Chair Bowman said would be finalization of its revisions to the eSLR in the “next few weeks or a month.” She didn’t specify a precise timeline for proposing Basel...

Open Banking/Dodd-Frank Sec. 1033

The CFPB has started a new process for issuing a rule that dictates how banks are required to share customer data with fintechs (open banking), which is required under Sec. 1033 of Dodd-Frank. The Biden CFPB issued an open banking rule last October and was sued by banking industry stakeholders. In May, the Trump CFPB indicated that it intended...

Deposit Insurance, Reciprocal/Custodial Deposits

Bipartisan consideration of raising the current $250k FDIC deposit insurance limit has intensified, as has policy surrounding reciprocal/custodial deposits. The Senate Banking Committee (SBC) held a hearing on deposit insurance, while Sens. Hagerty (R-TN) and Alsobrooks (D-MD) introduced legislation that would increase the limit to $20m for...

Crypto Market Structure, Stablecoins

Senate activity is intensifying regarding crypto market structure legislation, with a group of Republicans led by Sen. Lummis (R-WY) and Banking Committee Chair Scott (R-SC) releasing a discussion draft and working on building bipartisan support among the committee's membership. Scott reportedly intends for the committee to consider the bill in...

Financials, Housing

President Trump, Treasury Secretary Bessent, and Commerce Secretary Lutnick recently met with bank CEOs to discuss an IPO of the GSEs later this year, and over the weekend, Trump sent a post implying that he is targeting November as a date for the transaction. This definitive preparatory step and specific timing reference is notably incremental...

Private Investments/Retail

The Trump administration has begun to express openness to providing more access to private investments, as it did in President Trump’s first term. This is reflected in the SEC’s recently revised policy on how much closed-end funds can invest in private funds, as well as comments from Daniel Aronowitz, Trump’s nominee to be head of the Employee...