Posted June 27, 2017
White House Taps Key Senate Aide for Treasury Rescue Mission
As of June 27, 2017, the White House intends to nominate Chris Campbell, staff director for the Senate Finance Committee GOP, to serve as assistant Treasury secretary for financial institutions, people close to the matter said.
The job is among the most critical at Treasury as the department tries to push forward some of Trump's signature goals, including a major tax reform package and changes to Wall Street regulations. Treasury also faces the need to raise the nation's borrowing limit in the coming months to avoid a potentially catastrophic default.
Senate Releases Discussion Draft Re: Replacing Parts of AHCA
On June 22, 2017, The Senate released a discussion draft of legislation that would replace parts of the Affordable Health Care Act. Please see this side by side comparison of the Senate Draft Legislative Text vs. House-Passed bill.
Senate Majority Leader Mitch McConnell (R-Ky.) would like to have a completed bill voted on before the July 4 recess. At that point (if it passes), the legislation would go to a conference committee with the House.
Federal Reserve to Make Stress Testing More Transparent
On June 16, 2017, Federal Reserve Chair Janet Yellen sent a letter to Rep. Blaine Luetkemeyer (R-Mo.), stating that the Fed will make its stress testing for banks more transparent. She cautioned however, that disclosure of all details of the central bank’s modeling on the annual exams could lessen their effectiveness. "There would also be a risk of increased correlations in asset holdings among large banks, making the financial system more vulnerable to adverse economic shocks," Yellen wrote.
The Fed is currently weighing different approaches for providing more information to banks about the agency's modeling. "One way to do so would be to publish loss information for more asset categories than are currently included in the Federal Reserve's stress test results disclosure," Yellen stated in the letter to Rep. Luetkemeyer. "Another would be to publish a set of hypothetical portfolios with modeled losses on those portfolios." Methods for such disclosures are in development and the Fed will reach out for public comments in the coming months.
Yellen stated that the Fed will release instructions and scenarios for the stress tests by Feb. 15 and will provide more information about its qualitative assessments after this year's tests.
The Fed will begin releasing 2017 test results on June 22 for Dodd-Frank-mandated stress tests, and will announce results for the Comprehensive Capital Analysis and Review (CCAR) tests, (which will dictate if banks will be able to pursue capital distribution plans), on June 28.
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