Pandemic response, CRA overhaul, election: The year in banking policy

December 27, 2020 9:00 PM

In 2020, the news in Washington was dominated by the regulatory impact of COVID-19 and presidential politics. There was also a new rule changing how national banks will be examined under the Community Reinvestment Act, and the 10th anniversary of Dodd-Frank. Here is a look back at stories from the past year.

What else can the Fed do to blunt coronavirus impact? (March 17)

The Federal Reserve's support for the commercial paper market made clear that it was willing to go beyond cutting interest rates, but the central bank may feel pressure to do even more as the crisis worsens.

(Full story here.)

Amid pandemic, state elected officials become de facto bank regulators (April 12)

In blue states in particular, governors and attorneys general are taking up the mantle of consumer protection during the coronavirus emergency, effectively adding another layer of regulation to the patchwork of state and federal oversight.

(Full story here.)

5 ways the CFPB has eased industry's coronavirus burden (May 18)

The agency has freed companies from reporting requirements and provided flexibility on exams to help them deal with COVID-19 fallout. It has also finished other regulatory relief efforts that were in the pipeline before the pandemic hit.

(Full story here.)

OCC to overhaul CRA rule as Otting plans to leave agency (May 19)

The final regulation will significantly revise a December proposal, responding to concerns from stakeholders. Meanwhile, in a surprising move, the regulator who had championed the reforms is expected to resign this week.

(Full story here.)

Should banks fear a blue wave in November? (May 21)

If Democrats retake both the White House and Senate in the 2020 election, analysts see threats to the industry from the appointment of new regulators and possible reversal of Trump-era deregulation. But legislation imposing new rules on financial institutions would face long odds.

(Full story here.)

GSE capital plan would make buying a home more expensive, critics say (June 8)

The FHFA's proposal is intended to strengthen Fannie Mae and Freddie Mac, but many experts warn that it could boost guarantee fees for lenders that they say may be passed on to borrowers.

(Full story here.)

Why bankers remain unsold on Fed's Main Street program (June 19)

Worried about a lack of demand and that some of their customers are ineligible, community banks are still on the fence about participating in the effort to back loans for businesses recovering from the pandemic crisis.

(Full story here.)

10 years after bruising Dodd-Frank fight, is bipartisanship returning? (July 6)

Rancor between Democrats and Republicans has made it hard to enact subsequent bills. But the 2018 reg relief package and more recent legislation offer hope for efforts to reach across the aisle.

(Full story here.)

PPP lenders nearing $10B asset mark fear regulatory nightmare (Sept. 3)

Several community banks are warning Congress that their participation in the Paycheck Protection Program could cause them to cross a threshold that may lead to, among other things, supervision by the CFPB and a cap on interchange fees.

(Full story here.)

Trump vs. Biden: What's at stake for banks (Sept. 17)

The future of Fannie Mae and Freddie Mac, the Fed's supervisory regime for the biggest financial institutions, reform of the Community Reinvestment Act and a host of other industry-related issues are on the ballot this November.

(Full story here.)

With Biden declared winner, what's next for banks? (Nov. 7)

With a Democrat set to take the White House in January, the agenda for agencies like the CFPB could undergo a rapid transformation, housing finance reform could be turned on its head and progressive banking ideas that were unthinkable over the past four years could gain traction.

(Full story here.)

Is GSE reform dead on arrival under Biden? (Nov. 18)

The Trump administration has moved forward on a plan to privatize Fannie Mae and Freddie Mac, but Joe Biden appointees could take steps to slow or stop their release from conservatorship.

(Full story here.)

MORE FROM AMERICAN BANKER

De novo institutions

Exclusive: Rep. Andy Barr to reintroduce de novo bank bill

The chairman of the financial institutions panel of the House Financial Services Committee said his newly reintroduced bill has a considerable chance of passing with Republicans in control of both chambers of Congress and the White House.

By Claire Williams

1h ago
Industry News

Goldman doubles profits, has high hopes for new Trump era

As Donald Trump returns to the White House, Goldman Sachs is looking forward to the "improving regulatory backdrop."

By Nathan Place

January 15
Earnings

Citi's Fraser defends expenses, long-term investments

Jane Fraser, CEO of Citigroup, told analysts she's not going to sacrifice growth-related investments for short-term gains. "You shouldn't want me to do that," she said.

By Allissa Kline

January 15
Politics and policy

Trump team eyes hiring freeze, regulatory rollbacks for CFPB

The incoming Trump administration's 'agency review team' has landed and is expected to name an acting director of the Consumer Financial Protection Bureau. Republicans on the Federal Deposit Insurance Corp. or the Federal Trade Commission are among the most likely candidates.

By Kate Berry

January 15
Commercial banking

Why investors seem giddy about once-troubled Wells Fargo

Wells Fargo CEO Charlie Scharf validates some of the optimism, telling analysts he feels "really great about our progress." But he said executives "don't want to get ahead of ourselves."

By Polo Rocha

January 15
Cyber security

New EU cyber law for banks could reshape global standards

Banks must comply with a European Union law known as DORA by Friday. The law aims to improve cybersecurity and reduce tech failures in financial services.

By Carter Pape

January 15