Updates
The latest news and advocacy information for industrial bankers.
Debt ceiling looms as fiscal year ends
Speaker of the House Nancy Pelosi (D-CA) vowed at a press conference yesterday that Congress will keep the federal government open and prevent a default on federal debt. The House of Representatives approved a continuing resolution with a debt limit suspension on Tuesday with a party-line vote.
House Subcommittee reaffirms the Strengths and Regulatory Oversight of Industrial Banks
This week the US House Financial Services Committee Subcommittee on Consumer Protection and Financial Institutions conducted a hearing “The Future of Banking: How Consolidation, Nonbank Competition, and Technology are Reshaping the Banking System”.
Deadlines met, deadlines pending
All 13 House committees charged with marking up pieces of the budget reconciliation package have finished that work, voting out spending bills along party lines, with no Republicans voting in the affirmative. But the end of the fiscal year—September 30—looms, as does the debt ceiling.
Welcome back!
Welcome back! While the House officially remains in its district work period until September 20, several committees have been hard at work this week, and that work will continue next week.
Senate approves bipartisan infrastructure plan
Unless you’ve been asleep for the last week, you already know that the Senate voted on Tuesday morning to pass their version of a bill to authorize five years of infrastructure funding. The bill replaced the text of H.R. 3684, the INVEST in America Act, which the House passed on July 1.
Respected Academics Reaffirm Safety Of Industrial Banks
The Utah Center for Financial Services at the University of Utah’s comprehensive study “Source of Strength and Consolidated Supervision: A Comparative Assessment of Industrial Banks and Commercial Banks”, by Dr. James Barth and Dr. Yanfei Sun.”
Administration extends pause on student loan payments
The Department of Education announced late this afternoon that it is extending the pause on federal student loan payments from its original expiration date of September 30 to January 31, 2022.
A deal on infrastructure?
The Senate voted 66-28 this morning to proceed with consideration of a bipartisan infrastructure package that would provide $550 billion in new spending on a wide range of projects
We’re running out of money. But when?
Secretary of the Treasury Janet Yellen wrote to Speaker of the House Nancy Pelosi (D-CA) today to notify her that the federal government’s outstanding debt will reach its statutory limit on August 1, immediately after the suspension approved in 2019 expires.
Regulators hit reset on CRA reform, commit to joint rulemaking
Federal bank regulators committed to rescinding the Trump-era reform of the Community Reinvestment Act, announcing a second attempt at an interagency rulemaking to modernize the anti-redlining law.
Senate plans to vote on infrastructure next week
Senate Majority Leader Chuck Schumer said yesterday that he wants the Senate to start voting next Wednesday on a $579 billion infrastructure package. He also wants agreement from Senate Democrats by Wednesday on how to move forward with the $3.5 trillion budget agreement that he, Senate Banking Committee Chairman Bernie Sanders (D-VT), and Senator Mark Warner (D-VA) announced on Tuesday.
House approves major infrastructure package
Yesterday the House of Representatives voted 221-201 to approve H.R. 3684, the INVEST in America Act, which would provide more than $700 billion over five years for surface transportation programs, climate change mitigation, rural bridges, new safety requirements for all forms of transportation, and a pilot program to test a national vehicle miles traveled (VMT) tax.
Congress nullifies OCC “true lender” rule
The House of Representatives voted 218-208 yesterday to approve S.J.Res.15, which overturns the Office of the Comptroller of the Currency’s October 2020 rule on “National Banks and Federal Savings Associations as Lenders.”
Happy Juneteenth!
President Biden signed the Juneteenth National Independence Day Act into law yesterday, and proclaimed its first day of observance as a federal holiday today. Many federal offices are closed today. Let freedom ring.
Masks off!
The Capitol Hill complex has reached an 85% vaccination rate against COVID-19, which means that vaccinated House members, staff, and visitors no longer need to wear masks in the Capitol or the House office buildings. The House of Representative’s Attending Physician, Brian Monahan, announced the new guidance today. Masks had been encouraged but never required on the Senate side.
Ameriprise Financial Applies for a State Industrial Bank Charter
Ameriprise Financial (NYSE: AMP) has filed an application to convert Ameriprise Bank, FSB to a state-chartered industrial bank (IB) regulated by the Utah Department of Financial Institutions (UDFI) and the Federal Deposit Insurance Corporation (FDIC).
Biden budget emphasizes infrastructure, education, tax reform
President Biden sent Congress his FY 2022 budget today, putting price tags on the elements of his American Jobs Plan to rebuild infrastructure and his American Families Plan to help cover basic expenses of childcare, health care, and education.
Executive Order calls for climate risk disclosure and management policies
President Joe Biden issued an Executive Order on Climate-Related Financial Risk yesterday that calls for “consistent, clear, intelligible, comparable, and accurate disclosure of climate-related financial risk” throughout both the private and public sectors. The EO calls for the development within 120 days of a government-wide strategy to measure, assess, mitigate, and disclose climate-related financial risk to federal government programs and assets.
House Financial Services Committee reaffirms the Regulatory Oversight and Strengths of Industrial Banks
Yesterday, the US House Financial Services Committee (HFSC) conducted a hearing “Oversight of Prudential Regulators: Ensuring the Safety, Soundness, Diversity, and Accountability of Depository Institutions.” Federal regulators offered verbal and written testimony regarding their views on various matters confronting financial institutions. FDIC Chairman Jelena McWilliams fielded several questions regarding industrial banks, which her agency supervises.
Tai calls for “holistic” approach to trade, legislators urge renewal of TPA, GSP
US Trade Representative Katherine C. Tai spent about eight hours before the Senate Finance Committee and House Ways & Means Committee this week, answering questions about the Biden administration’s “worker-centric” trade policy, the status of 301 tariff exemptions (under review), the need to reauthorize the Trade Promotion Authority and the Generalized System of Preferences, and how the administration plans to respond to Chinese forced labor practices and trade abuses.