STATE GOVERNMENT RELATIONS
Sen. Spencer Deery to remain on Nov. ballot
The Indiana Supreme Court ruled this week that Sen. Spencer Deery will remain on the November ballot. Sen. Deery fought a close primary battle in May, winning the election by just three votes. His opponent, Paula Copenhaver, later challenged the validity of several ballots. The Indiana Election Commission ruled with Copenhaver and dismissed six ballots, all for Deery, based on administrative errors. The Indiana Supreme Court heard arguments this week regarding whether to reinstate the six ballots and ruled shortly after that the six ballots are valid, placing Sen. Deery back on the ballot for November.
Read more from the Indiana Capital Chronicle
FEDERAL GOVERNMENT RELATIONS
Hill: FDIC on track to issue stablecoin rulemaking by year’s end
The Federal Deposit Insurance Corp. plans to issue a final rulemaking before the end of the year to establish an application process and prudential requirements for stablecoin issuers under its jurisdiction, although likely not until after the Office of the Comptroller of the Currency issues its own stablecoin rules, FDIC Chairman Travis Hill said.
Fannie Mae, Freddie Mac expand VantageScore availability to all lenders
Fannie Mae and Freddie Mac will now allow all lenders the option to use VantageScore 4.0 to assess the creditworthiness of single-family mortgages.
Agencies increase community bank eligibility for 18-month exam cycles
The federal banking regulators issued an industry-supported interim final rule increasing the number of community banks eligible for an 18-month exam cycle. The interim final rule from the Federal Deposit Insurance Corp., Office of the Comptroller of the Currency and Federal Reserve:
- Implements a provision of the 21st Century ROAD to Housing Act increasing the total asset threshold from $3 billion to $6 billion for certain supervised institutions to qualify for an extended 18-month on-site exam cycle.
- Reduces time and expense burdens for non-complex, low-risk institutions.
- Requires institutions to be well managed and well capitalized to qualify for the extended exam cycle.
- Will increase the number of eligible banks by approximately 188 (95 of which are supervised by the FDIC, 50 by the OCC, and 43 by the Fed), bringing the total number of institutions that may qualify to 4,016.
- Will be effective immediately upon publication in the Federal Register, and comments will be accepted for 30 days.
Fed’s Bowman: CECL has failed community banks
Federal Reserve Vice Chair for Supervision Michelle Bowman said the Current Expected Credit Losses accounting standard is costly and counterproductive for community banks. In a Wall Street Journal op-ed, Bowman said CECL has failed community banks and the Financial Accounting Standards Board should permit smaller institutions to return to the incurred-loss methodology. The incurred-loss standard let banks record loan-loss reserves only when losses became probable. CECL requires banks to immediately reserve for all expected credit losses over the life of a loan.
Read the op-ed (subscription required)
Treasury cracks down on transnational cyber scam operator
The Treasury Department announced it has seized infrastructure and digital asset wallets used by a Chinese platform that operates a large illicit online marketplace used to support cyber scams and fraud targeting Americans.
Treasury said Xinbi Guarantee operates an illicit online marketplace that serves as a central node connecting transnational criminal syndicates, including scam center operators, with merchants that provide financial services, technology and other goods.