Welcome to this week's edition of Cabinet News and Views covering the latest speeches and publications by U.S., UK and Asia government agencies and their leaders on recent developments in the banking industry.

My colleague, Mercedes Kelley Tunstall, provides two updates on the Consumer Financial Protection Bureau. She reports on a recent speech by CFPB Director Rohit Chopra addressing concerns regarding technology companies and other nonbanks getting involved in the creation and issuance of stablecoins; and reviews the publication of a CFPB Advisory Opinion regarding “Consumer Information Requests to Large Banks and Credit Unions.”

FRB Governor Bowman has been fairly prolific in speaking recently, with a speech on Responsible Innovation in Money and Payments on Tuesday, that I would commend to anyone interested in the CBDC discussion, but I take a look at Governor Bowman’s remarks she made in Morocco last week on the financial stability risks and vulnerabilities she is most focused on and her views on the overall resilience of the U.S. banking system.

My colleague Alix Prentice examines a speech by Sam Woods, the Deputy Governor for Prudential Regulation and CEO of the Prudential Regulation Authority, on this year’s banking failures, the lessons learned and priorities going forward for the Authority.

My colleagues Jason Halper and Sara Bussiere discuss a recent directive issued by The Hong Kong Monetary Authority, Hong Kong’s de facto central banking institution, for banks setting out high-level principles on planning for a transition to a net-zero economy.

Finally, by way of preview, both the FRB and FDIC have given Sunshine Act notices for open meetings next week. The FRB will have an open meeting on October 25 proposing revisions to Reg. II on debit interchange. The FDIC’s October 24 open meeting will consider a final rule on the Community Reinvestment Act and an Interagency Policy Statement on climate-related financial risk management. We will plan to cover those important topics next week.

As always, we welcome your thoughts. Just drop me a note here.

Daniel Meade 
Partner and Editor, Cabinet News and Views

By Mercedes Kelley Tunstall

Partner | Financial Regulation

Earlier this month, Rohit Chopra, the Director of the Consumer Financial Protection Bureau, gave a speech at the Brookings Institute’s “Payments in a Digital Century” event.  In his prepared remarks, Chopra addressed concerns regarding technology companies and other nonbanks getting involved in the creation and issuance of stablecoins and blurring “the lines between payments and commerce [in such a way that it] creates the incentives for excessive surveillance [of consumers and their spending habits] and even financial censorship.”

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By Daniel Meade

Partner | Financial Regulation

Last week, Federal Reserve Board Governor Michelle Bowman gave a speech entitled Financial Stability in Uncertain Times, focusing on the “financial stability risks and vulnerabilities” she is most focused on. 

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By Mercedes Kelley Tunstall

Partner | Financial Regulation

The Consumer Financial Protection Bureau announced last week the publication of an Advisory Opinion regarding “Consumer Information Requests to Large Banks and Credit Unions.” The Advisory Opinion applies to “large banks and credit unions”, which means those with $10 Billion or more in assets, and will begin to be enforced against these institutions starting February 1, 2024. 

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By Alix Prentice

Partner | Financial Regulation

In a speech published earlier this week, Sam Woods the Deputy Governor for Prudential Regulation and CEO of the Prudential Regulation Authority ("PRA") discussed this year’s banking failures, the lessons learnt and priorities going forward in the work that needs to be done to "improve and refine the regulatory regime for banks".

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By Jason M. Halper

Partner | Global Litigation

By Sara Bussiere

Special Counsel | Global Litigation

The Hong Kong Monetary Authority, Hong Kong’s de facto central banking institution, issued a directive for banks setting out high-level principles on planning for a transition to a net-zero economy. In a “Dear CEO” letter dated August 29, 2023, to all authorized institutions, Daryl Ho, Executive Director of the Banking Policy Division, directed banks to integrate net zero transition into their planning activities by (i) aligning their objectives with net zero, and (ii) incorporating net zero into their internal processes. The HKMA stated that the new principles are geared towards helping banks maintain “safety and soundness in the transition.”

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