Posted December 13, 2017
NACHA Executives Meet with Fed Operations & Payments System Staff
On Dec. 11, 2017, Members of NACHA’s Executive Team attended its third meeting of the year with Federal Reserve Bank Operations and Payments System staff. The meeting focused on Same Day ACH Phases 2 and 3 as well as potential future enhancements to the ACH Network. Other topics included NACHA’s leadership in the ASIG (API Standardization Industry Group) and a Fed staff-led discussion on their paper, Faster Payments: Market Structure and Policy Considerations.
Federal Judge Throws Out NYDFS Lawsuit Challenging OCC Fintech Charter
On Dec. 12, 2017, Federal Judge Naomi Reice Buchwald for the Southern District Court of New York dismissed a lawsuit filed by the New York State Department of Financial Services (NYDFS) which sought to block fintechs from being able to acquire special purpose national bank charters.
In her ruling, Judge Buchwald cited her reason for the dismissal as the court’s lack of “subject-matter jurisdiction” under the requirements of the ripeness doctrine, which states that federal courts must “limit their jurisdiction to causes of action that ‘present a real, substantial controversy, not a mere hypothetical question.’” She also suggested that the OCC give prior notice to the NYDFS before granting any charters to fintech companies, considering the New York regulator continues to oppose the concept.
Senate Banking Committee Approves Powell as Federal Reserve Board Chair
On Dec. 5, 2017, the Senate Banking Committee voted (22-1) in approval of Jerome Powell’s nomination as Chairman of the Federal Reserve Board and will next be voted on by the full Senate. It is expected that Governor Powell will be confirmed easily due to a good level of bipartisan support and he would begin his term on Feb. 3, 2018 as Chair Janet Yellen’s term ends.
Trump Nominates Jelena McWilliams to Lead FDIC
President Trump will nominate Fifth Third Bank Chief Legal Officer, Jelena McWilliams, for FDIC Chair. This appointment has been expected for months and is strongly supported by NACHA.
Trump Nominates Economist Goodfriend as Fed Governor
On Nov. 29, 2017, President Donald Trump nominated economist Marvin Goodfriend to serve as a Federal Reserve Board Governor. Goodfriend's appointment has been expected for several months. Goodfriend, a professor at Carnegie Mellon University, has been critical of the Fed's response to the 2008 financial crisis and has said its monetary policy moves should be more open to scrutiny by Congress.
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