Top Ten Policymakers to Watch in 2014
January 8, 2014 7:30 AM
Here's who has the potential to shake up the debates over housing finance reform, "too big to fail," consumer regulation and other key banking issues in the new year.
(Image: Thinkstock)
#10 - Thomas Curry, comptroller of the currency
During 2013, Thomas Curry began quietly reasserting the OCC's role in banking regulation, warning banks to focus on operational risk, including cybersecurity, and undertaking an effort to self-assess the agency's culture. Many expect him to be even more prominent in 2014.
(Image: Bloomberg News)
#9 - The Government Accountability Office
One of the biggest battles over Dodd-Frank is whether it ended "too big to fail," namely the funding advantage that the largest institutions enjoy in the markets. The Government Accountability Office set out to study that issue in 2013, releasing their first of two reports in November detailing the extent of government support for the big banks. Yet the second report is the more anticipated of the two, as it is expected to measure any remaining funding advantages the largest banks retain as a result of government support.
(Image: Bloomberg News)
# 8 - The next chairman of the Senate Banking Committee
After Senate Banking Committee Chairman Tim Johnson announced his intention to retire at the end of 2014, speculation started immediately over who would take the gavel of the panel. If Republicans make enough gains in the midterm elections in the fall, Sen. Richard Shelby is likely to regain the chairmanship. But if the Democrats keep the chamber, there are at least four contenders: Sens. Jack Reed, Chuck Schumer, Sherrod Brown and Robert Menendez.
#7 - Sen. Elizabeth Warren, D-Mass.
The main question dogging Sen. Elizabeth Warren in 2013 was how the liberal academic would transform herself into a senator, including if she would pattern herself more after Hillary Clinton, who mostly kept her head down in the Senate, or Ted Cruz, who does anything but. Instead, Warren chose a hybrid approach , playing a prominent role on the Senate Banking Committee on several key issues while also focusing on the details of less-hyped bills. She is expected to play a big role in the debate over housing finance reform in 2014, among other topics.
(Image: Bloomberg News)
#6 - CFPB Director Richard Cordray
2014 will mark Richard Cordray's first full year as a Senate-confirmed director of the Consumer Financial Protection Bureau. The agency began last year under a legal cloud, including the possibility that a court of law could invalidate Cordray's recess appointment to the agency. But with that issue now resolved after Democrats successfully forced the nomination through in July, the CFPB's power has been solidified and enhanced . That gives Cordray substantial leeway to focus the agency in most any direction he'd like in the new year.
(Image: Bloomberg News)
#5 - Treasury Secretary Jack Lew
By all accounts, Treasury Secretary Jack Lew took a keen interest in 2013 in the progress of financial reform, including pressuring regulators to hurry up and complete the Volcker Rule. The Treasury secretary also appears poised to take a greater hand in reform of the government-sponsored enterprises in 2014.
(Image: Bloomberg News)
#4 - Sen. Tim Johnson, D-S.D., and Sen. Mike Crapo, R- Idaho
The two leaders of the Senate Banking Committee are working on a bill to reform the GSEs that is expected out early in 2014. While it is likely to be based on work already done by Sens. Bob Corker, R-Tenn., and Mark Warner, D-Va., banking lobbyists are eager to see how Johnson and Crapo put their own stamp on it.
(Image: Bloomberg News)
#3 - Rep. Jeb Hensarling, R-Texas
While House Financial Services Committee Chairman Jeb Hensarling successfully shepherded his own GSE reform bill through his panel in 2013, he was unable to bring it before the full House. It remains unclear whether the Texas Republican can still pass the bill without significant changes, considering that most of the housing lobby opposes it because it lacks a substantial government guarantee.
(Image: Bloomberg News)
#2 - Rep. Mel Watt
Rep. Mel Watt was unexpectedly confirmed to head the Federal Housing Finance Agency in December after Democrats changed chamber rules to make it more difficult to filibuster nominees. The North Carolina Democrat is expected to take office on Jan. 6, but has already taken his first action, delaying a planned increase in guarantee fees that was scheduled to go into effect this month.
(Image: Bloomberg News)
#1 - Janet Yellen
One of the biggest changes in the financial world is due to take place in January when Ben Bernanke steps down after almost eight years as the head of the Federal Reserve Board. Yet most expect the transition to be seamless as Fed Vice Chair Janet Yellen, who is expected to win Senate confirmation shortly, has already worked closely with Bernanke. Still, one big question for the year is how she may refocus the central bank in terms of monetary policy and bank regulation.
(Image: Bloomberg News)
