Banking and Consumer Regulatory Digest

Editor's Note
The following newsletter provides a roundup summarizing enforcement actions, guidance, rulemakings, and other public statements taken by a federal and/or state financial services regulatory agency, specifically focusing on: (1) the source of the development (regulator, legislative body, etc.), (2) the subject matter (consumer lending, money transmission, capital markets, etc.), and (3) the general issue covered.

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Regulatory Developments

• Consumer Financial Protection Bureau. Overdraft Fees. On January 17, 2024, CFPB proposed a rule that would close a loophole that exempts overdraft lending services from provisions of the Truth in Lending Act and other consumer financial protection laws. President Joe Biden and CFPB Director Ronit Chopra issued separate statements about the rule.
• Federal Deposit Insurance Corporation. Finalizing Endgame Reforms, Investigating the "Big Three," Updating Application Policy. On January 5, 2024, FDIC Director Jonathan McKernan gave remarks at the Session on Financial Regulation at the Annual Meeting of the Association of American Law Schools.
• Federal Deposit Insurance Commission. Consumer Compliance Examination Manual. On January 12, 2024, FDIC issued revisions to Section IV-3.1 (Fair Lending Scope and Conclusions Memorandum) and Section VI-1.1 (Expedited Funds Availability Act) of its Consumer Compliance Examination Manual.
• Federal Reserve Board. New Year's Resolutions for Bank Regulatory Policymakers. On January 8, 2024, FRB Governor Michelle W. Bowman gave a speech at the South Carolina Bankers Association 2024 Community Bankers Conference. Her speech covered "monetary policy, bank regulatory reforms, the evolving standards in bank supervision, and new developments in the payments system."
• Federal Reserve Board. U.S. Economic Outlook. At The Brookings Institution on January 16, 2024, Federal Reserve Governor Christopher J. Waller gave a tour d'horizon of the U.S. economy and shared his thoughts on the pace of future interest rate reductions.
• Federal Reserve Board. Bank Capital Reform. On January 17, 2024, FRB Governor Michelle W. Bowman spoke about "The Path Forward for Bank Capital Reform." Her speech came one day after CSBS sent a letter to the FRB urging "substantial revisions" to the September 18, 2023, Basel III Endgame Proposal.
• Federal Reserve Board. Cyber Risk. On January 17, 2024, FRB Vice Chair for Supervision Michael S. Barr spoke about the cyber risk to banks and to financial markets at the "Conference on Measuring Cyber Risk in the Financial Services Sector."
• Financial Crimes Enforcement Network. Corporate Transparency Act. On January 8, 2024, Treasury Secretary Janet L. Yellen gave remarks at the Financial Crimes Enforcement Network. Her speech referenced the Corporate Transparency Act's Beneficial Ownership Reporting Rule, and the settlement with Binance, among other topics.
• Financial Crimes Enforcement Network. Paycheck Protection Program. On January 12, 2024, FinCEN issued an updated FAQ regarding implementation of the Paycheck Protection Program. The U.S. government "will not challenge lender PPP actions that conform to this guidance."
• National Mortgage Licensing System. Business Activity Definitions. On January 5, 2024, NMLS released its updated business activity definitions for 2024. The topics included are: Mortgage; Consumer Finance; Debt; and Money Services.

Enforcement and Litigation

• Department of Justice. Telemarketing Sales Rule. On January 2, 2024, the United States settled its suit against telecommunications service provider XCast Labs Inc. for violating the TSR by assisting and facilitating illegal robocalls.
• Department of the Treasury. Internal Revenue Service. On January 12, 2024, Treasury released a fact sheet detailing a new IRS initiative to use Inflation Reduction Act funding to "ensure large corporate, large partnership and high-income individual filers pay the taxes they owe," as well as initiatives to improve efficiency and privacy protection.
• Office of the Comptroller of the Currency. Community Reinvestment Act. On January 2, 2024, OCC released a list of December 2023 CRA performance evaluations for 25 national banks and federal savings associations.

Jonathan Cristol is a regulatory analyst with Davis Wright Tremaine LLP.