Posted July, 12 2017Randal Quarles, a Former Treasury Official Nominated to Fill a Vacant Seat on the Federal Reserve’s Board of Governors
The White House has announced that it will nominate Randal Quarles to fill a vacant seat on the Federal Reserve’s Board of Governors as vice chair overseeing the banking system.
Quarles would take the lead on rolling back any banking regulation. The nomination requires Senate confirmation.
Quarles had been rumored for several months as a candidate for the position at the Federal Reserve Board, which has been operating with only four of its seven posts filled. Two Governor seats remain unfilled, including the seat designated for a community banker. NACHA has been working hard to support a community banker, with extensive experience in payments, to be nominated for that seat.
Chairman Hensarling Threatens CFPB Director Cordray with Contempt
House Financial Services Chairman Hensarling (R-Tx) threatened CFPB Director Richard Cordray with contempt, saying he has failed to respond fully to a subpoena request. In a July 5 letter provided to NACHA, Hensarling said the bureau missed a May 2 deadline for sending communications related to Bureau work arbitration agreements.
The CFPB's final rule on arbitration was expected to be released early this year. Many suggest that the bureau is reluctant to publish a final arbitration agreements rule because Congress is likely to challenge the regulation under the Congressional Review Act.
This showdown is taking place prior to a Supreme Court decision regarding if the highest court may hear the appeal in the PHH v CFPB case. Director Cordray’s term ends next July but he may resign later this year from the bureau to run for governor in Ohio.
House Financial Services & General Government Appropriations Subcommittee Releases FY2018 Legislation
The House Financial Services and General Government Appropriations Subcommittee has released the FY2018 bill, which includes a section that moves the CFPB to the regular appropriations process to increase oversight of the agency. The bill does not change the structure of the CFPB.
HFS Subcommittee Hearing: “Examining the BSA/AML Regulatory Compliance Regime”
On June 28, 2017, the House Financial Services Subcommittee on Financial Institutions and Consumer Credit held a hearing entitled “Examining the BSA/AML Regulatory Compliance Regime”.
- Ms. Faith Lleva Anderson, Senior Vice President & General Counsel, American Airlines Credit Union, on behalf of the Credit Union National Association
- Mr. Greg Baer, President, The Clearing House Association, Executive Vice President and General Counsel, The Clearing House Payments Company
- Mr. Lloyd DeVaux, President and CEO, Sunstate Bank, on behalf of the Florida Bankers Association
- Ms. Heather A. Lowe, Legal Counsel and Director of Government Affairs, Global Financial Integrity
This hearing examined BSA compliance challenges facing financial institutions, including compliance trends, the effectiveness of current reporting requirements, and opportunities to improve and enhance the federal government’s ability to combat money laundering and terrorist financing.
State Regulators and U.S. Secret Service Issue Industry Best Practices for Combating Cyber Crime
On June 28, 2017, state bank regulators, jointly with the U.S. Secret Service, released banker best practices for managing risks related to certain cyber threats. The best practices were developed by the Bankers Electronic Crimes Task Force, which includes bank CEOs and executive officers from banks across the U.S.
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