FEDERAL GOVERNMENT RELATIONS
House passes tax, spending package in narrow vote
The House passed the Republican tax and spending package by 215 to 214 votes early Thursday. The bill, which seeks to extend 2017 tax cuts and implement other priorities, now heads to the Senate.
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Trump considers taking Fannie, Freddie public
President Donald Trump is considering taking Fannie Mae and Freddie Mac public, consulting with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Federal Housing Finance Agency Director William Pulte. The move could significantly impact the mortgage market, as the companies support about 70% of U.S. mortgages.
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House panel approves bills on bank supervision, mergers
The House Financial Services Committee advanced several bills aimed at bank supervision and regulation, including measures to set time frames for merger approvals, limit reputational risk assessments and create an appeals process for supervisory determinations. The merger timeline bill would force the Federal Reserve to decide on deal applications within 90 days, while a separate bill would establish an Office of Independent Examination Review to provide a mechanism for banks to challenge regulatory decisions.
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House passes measure to repeal OCC rule on bank mergers
The House approved a Congressional Review Act resolution to repeal a rule finalized by the Office of the Comptroller of the Currency in September with the goal of subjecting bank mergers to stricter regulatory oversight. The resolution, which would bar the OCC from proposing substantively similar rules in the future, now advances to President Donald Trump's desk.
FDIC's Hill proposes recalculating DIF reserve ratio
Travis Hill, acting chair of the Federal Deposit Insurance Corp., has proposed a change in how the Deposit Insurance Fund's reserve ratio is calculated. Hill suggested that the denominator of the ratio could be the assessment base, which considers banks' total liabilities instead of just insured deposits. The goal is to correct "a mismatch in how assessments are charged and how the health of the DIF is measured," Hill said.
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House GOP approaching deal on SALT deduction cap
House Speaker Mike Johnson, R-La., is close to securing a deal with Republican House members from blue states to raise the state and local tax deduction cap to $40,000 for individuals earning up to $500,000. President Donald Trump has urged the holdouts to agree to the terms, which include a 1% annual income phaseout over 10 years. The deal is crucial for Johnson, who aims for a House vote on the bill this week.
Stablecoin bill passes key Senate procedural vote
The Senate has voted 66-32 to advance the GENIUS Act, a stablecoin regulation bill, after overcoming initial opposition among Democrats. The bill faced delays due to concerns about potential conflicts of interest tied to President Donald Trump's cryptocurrency ventures.
Moody's downgrades US credit rating amid debt concerns
Moody's Ratings downgraded the U.S. credit rating from the highest-possible Aaa rating to Aa1, pointing to the country's increasing government debt burden and higher interest costs. The downgrade is expected to raise yields on U.S. Treasury debt and might negatively affect investor sentiment regarding U.S. assets. The move by Moody's aligns with previous downgrades by S&P and Fitch Ratings.