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☆ Banks Sue Regulators Over Anti-Redlining Rule
▼ + stars: | 2024-02-05 | by ( Emily Flitter | More About Emily Flitter | ) www.nytimes.com time to read: +1 min

Some of the banking industry’s most powerful trade groups sued the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency on Monday, claiming that the regulators overstepped their authority in updating a law meant to reverse the effects of redlining. In October, the regulators imposed new frameworks for assessing whether banks are abiding by the 1977 Community Reinvestment Act, which requires banks to do business in neighborhoods made up largely of racial minorities or low-income households that they typically shunned. The lawsuit said the rule was “a complicated and burdensome regime” and might “ultimately result in reduced lending to the very populations that the C.R.A. was designed to benefit.”The suit was filed by the American Bankers Association, the Independent Community Bankers of America and the U.S. Chamber of Commerce, trade groups that represent virtually all U.S. banks. Several Texas groups joined as plaintiffs, allowing the Washington-based groups to sue in federal court in that state, where they have already won favorable rulings against the regulators.

Persons: “ Organizations: Federal Reserve, Federal Deposit Insurance Corporation, American Bankers Association, Independent Community Bankers of America, U.S . Chamber of Commerce, Texas Locations: Washington

The group usually has one active case against financial regulators, but currently has two against the Securities and Exchange Commission (SEC) and one against the Consumer Financial Protection Bureau (CFPB), he said. To be sure, the financial regulators have been sued many times during previous administrations, including by pro-reform advocacy groups. "There are some financial regulators that are walking right into it," he added. In September, for example, bank groups accused regulators including the Federal Reserve of violating the APA with a new capital rule. According to research by Wharton School professor David Zaring, neither industry groups nor individual lenders have filed more than one suit over the past decade challenging Fed policymaking.

Persons: Jim Bourg, Gibson, Dunn, Crutcher, Joe Biden's, Donald Trump's, Tom Quaadman, Jack Inglis, CFPB, Dennis Kelleher, Trump, Eugene Scalia, Gibson Dunn, Scalia, Antonin Scalia, Rebeca Romero Rainey, David Zaring, Kelleher, Douglas Gillison, Chris Prentice, Pete Schroeder, Nate Raymond, Jody Godoy, Megan Davies, Nick Zieminski Organizations: U.S . Securities, Exchange Commission, SEC, REUTERS, WASHINGTON, Democratic, Republican, Reuters, APA, U.S . Chamber of Commerce, Securities and Exchange Commission, Consumer Financial Protection Bureau, Funds, Alternative Investment Management Association, Fifth Circuit, Appeals, Better Markets, Biden, American Bankers Association, Labor, Supreme, Independent Community Bankers of, Federal, Wharton School, Thomson Locations: Washington, Independent Community Bankers of America

☆ Frustrated With New Rules, Bank Lobbyists Are Making Their Fight Public
▼ + stars: | 2023-11-02 | by ( Emily Flitter | More About Emily Flitter | ) www.nytimes.com time to read: +1 min

Banks have become increasingly frustrated with their federal regulators and, in a break with tradition, have brought the battle out into the open. In an effort to overturn new rules and challenge the legitimacy of regulators’ powers, bank lobbyists have added legal threats and public attacks to the more usual lobbying efforts that once took place behind closed doors on Capitol Hill. In recent months, trade groups representing banks of all sizes, including the American Bankers Association, the Independent Community Bankers of America and the Bank Policy Institute, have accused federal regulators like the Consumer Financial Protection Bureau and the Federal Reserve of regulatory overreach. Cam Fine, a former longtime president of the community bankers group, said the cultural shift leading to the lawsuits was notable. In his 18 years at the group, he said, he could remember going to court only twice.

Persons: Banks, Cam Fine Organizations: American Bankers Association, Independent Community Bankers of America, Bank Policy Institute, Consumer Financial Protection Bureau, Federal Reserve

"I expect rates may have to stay higher, and for longer, than previous projections had suggested," said Collins. San Francisco Fed President Mary Daly and Minneapolis Fed President Neel Kashkari are scheduled to make remarks later on Friday as the Fed's "blackout" period on post-meeting policy comments lifted. The central bank's decision to hold its benchmark overnight interest rate steady this week was unanimous. Collins does not currently have a vote on rate policy under a Fed system that rotates votes among the 12 reserve bank presidents year by year. New projections issued at the end of a two-day policy meeting on Wednesday showed 12 of 19 Fed officials expect one additional quarter point rate increase this year.

Persons: Dado Ruvic, Michelle Bowman, Susan Collins, Collins, Mary Daly, Neel Kashkari, Bowman, Howard Schneider, Paul Simao, Andrea Ricci Organizations: REUTERS, Rights, . Federal, Independent Community Bankers of, Maine Bankers Association, Boston, Fed, San Francisco Fed, Minneapolis Fed, Thomson Locations: Independent Community Bankers of Colorado

The service will compete with private sector real-time payments systems, including The Clearing House's RTP network, and was initially opposed by big banks who said it was redundant. Unlike peer-to-peer payments services like Venmo or PayPal, which act as intermediaries between banks, payments made via FedNow will settle directly in central bank accounts. The Fed also operates a real-time payments system called FedWire, but that's reserved for large-scale, mostly corporate payments and is only operational during business hours. While the new FedNow system is for everyone, it's likely to benefit consumers and small businesses the most, analysts have said. But Fed officials have downplayed those concerns, arguing that banks have tools available to mitigate a wave of outflows.

Persons: JPMorgan Chase, FedNow, Anu Somani, it's, ”, Carl Slabicki, Lance Noggle, Hannah Lang, Michelle Price, Andrea Ricci Organizations: U.S . Federal, European Union, JPMorgan, Bank of New York Mellon, US Bancorp, RTP, U.S . Bank, PayPal, Fed, Mellon’s Treasury Services, “, Independent Community Bankers of, Thomson Locations: United Kingdom, India, Brazil, FedNow, Independent Community Bankers of America, Silicon, Washington

☆ 'Hard choices' will need to be made about which bills go unpaid if the debt ceiling is not raised, Yellen says
▼ + stars: | 2023-05-21 | by ( Ashley Capoot | ) www.cnbc.com time to read: +2 min

Treasury Secretary Janet Yellen said Sunday that "hard choices" will need to be made about which bills will go unpaid if the debt ceiling is not raised. "We're focused on raising the debt ceiling, and there will be hard choices if that doesn't occur," she told NBC's "Meet the Press." "There can be no acceptable outcomes if the debt ceiling isn't raised, regardless of what decisions we make." Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president in order to prevent default. Yellen also warned that a debt ceiling breach could affect essential government services.

☆ US economy 'hangs in the balance' as debt limit impasse drag on, Yellen says
▼ + stars: | 2023-05-16 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

WASHINGTON, May 16 (Reuters) - The standoff over the federal debt limit is already having dire consequences for the U.S. economy, driving borrowing costs higher and adding to the country's debt burden, U.S. Treasury Secretary Janet Yellen is expected to say in prepared remarks on Tuesday. "The U.S. economy hangs in the balance. Congress should address the debt limit as soon as possible." Yellen said the 2011 crisis - when lawmakers raised the debt limit shortly before the government had to stop making payments - showed the serious repercussions of not acting sooner. Investors had already become more reluctant to hold government debt that matures in early June, and the deadlock was increasing the overall debt burden, she said.

☆ Yellen warns of broken markets, disrupted services as she ramps up debt ceiling pressure
▼ + stars: | 2023-05-16 | by ( Emma Kinery | ) www.cnbc.com time to read: +3 min

Janet Yellen, US Treasury secretary, during a news conference at the Treasury Department in Washington, DC, US, on Tuesday, April 11, 2023. "A default would crack open the foundations upon which our financial system is built," Yellen warned in prepared remarks. Yellen also warned that a debt ceiling breach could affect essential government services. Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default. "A default could cause widespread suffering as Americans lose the income that they need to get by," Yellen said.

☆ Live Updates: Biden, Congressional Leaders to Meet on Debt Limit
▼ + stars: | 2023-05-16 | by ( Zolan Kanno-Youngs | Catie Edmondson | ) www.nytimes.com time to read: +7 min

President Biden and his allies said the White House and congressional teams had productive talks in recent days. The government reached the $31.4 trillion debt limit on Jan. 19, and the Treasury Department has been using accounting maneuvers to keep paying its bills. The president is scheduled to depart for Japan on Wednesday to attend the Group of 7 meeting, heightening the sense of urgency to make progress on the debt limit. While Mr. McCarthy played down progress, Mr. Biden and his allies said the White House and congressional teams had productive talks in recent days. “SNAP already has work requirements,” said Senator John Fetterman, Democrat of Pennsylvania, referring to the Supplemental Nutrition Assistance Program.

Paying more for deposits is an effective way for banks to keep customers loyal, analysts said. Smaller banks, which were most strained by the recent crisis, have been able to stem the exodus of deposits for now, according to weekly from the Federal Reserve. That said, the Fed’s data showed deposits at smaller banks were still down some $216 billion during the week ending March 22 from a December high. Meanwhile, large U.S. banks lost out on $96.2 billion in deposits in the week ending March 22, the Fed data showed. Deposits at large banks dropped some $519 billion from as high as $11.2 trillion in February last year.

☆ Community banks are a positive picture amid banking turmoil
▼ + stars: | 2023-03-31 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCommunity banks are a positive picture amid banking turmoilRebeca Romero Rainey, Independent Community Bankers of America president and CEO, joins 'Squawk Box' to discuss what independent community banks are if Rainey's bankers need help, and more.

March 24 (Reuters) - Financial sector headwinds are creating fresh openings for private equity investments in aerospace, as suppliers' need for capital to meet soaring demand for planes and parts risks further turbulence, executives said. He said he would not oppose a private equity investment, as long as he maintains control and the combination makes sense by lowering costs. Global private equity deals among companies with aerospace portfolios rose to 216 in 2022, more than double 2019's figure and the highest in over a decade, according to Refinitiv data. Permanent Equity wants to invest in repair stations and suppliers with large inventories of aerospace parts. In Canada, while bank loans remain accessible for small suppliers, rising rates have flattened real estate pricing.

☆ U.S. banks cut donations to federal candidates, up Democrats' share ahead of mid-terms
▼ + stars: | 2022-10-10 | by ( Pete Schroeder | ) www.reuters.com time to read: +5 min

Following the 2007-09 financial crisis when Democrats cracked down on banks, lenders have typically looked to business-friendly Republicans for support in Congress. And of the top-20 congressional recipients of bank PAC donations this cycle, 10 are Democrats compared with six in 2020, three in 2018, and one ahead of the 2016 election. Reuters GraphicsThe shift in giving patterns shows how banks are rethinking their allegiances amid increased political partisanship. To be sure, the party in power commonly enjoys a bounce in donations and banks are also spreading their bets ahead of a tightening contest, said Ballentine and the other sources. Nine of the top 10 recipients of industry donations are Republicans, including Representative Patrick McHenry who is likely to chair the House finance panel if Republicans win that chamber.

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