The Financial Regulatory Week Ahead
FSOC Presents Its Annual Report to Congress, What Sort of Government Shutdown Will We Get?, Federal and State Regulators Battle Over Real Estate Escrow Accounts
February 2 - 6, 2026
Washington is still buried under frozen snow – known here as “snowcrete” because it is like chiseling concrete to clear it away. A number of schools remain closed (having been closed all last week, too), but the wheels of Congress and regulators continue to turn.
The big event of the week will be Treasury Secretary Scott Bessent testifying before the House Financial Services Committee and the Senate Banking Committee to present the Financial Stability Oversight Council (FSOC) 's annual report.
Both hearings look to be pretty wide open in terms of issues to discussed but we suspect a heavy focus of questioning will be on the Trump Administration’s evisceration of the Consumer Financial Protection Bureau (CFPB) and what the Administration intends to do with it going forward along with reform of the Federal Reserve (now that President Trump has nominated Kevin Warsh to be the next chair and Bessent has repeatedly said the Fed needs to reformed), and the future bank regulatory framework.
Looking at last week, we noted an unusual fight emerging between federal and state regulators over real estate escrow accounts. The fight comes at a sensitive time, as the cost of buying a new home has emerged as a serious political issue in this year’s midterm elections. The disagreement revolves around the interest paid on escrow accounts used by mortgage holders to pay expenses such as taxes and insurance. More than a dozen states require banks pay interest on escrow accounts.
However, the Office of the Comptroller of the Currency (OCC) recently proposed a rule that would allow nationally chartered banks under its supervision to pay no interest and charge fees to escrow account holders.
Elsewhere, we continue to track legislation introduced by Senators Roger Marshall (R-KS) and Dick Durbin (D-IL) to crack down on credit card swipe fees. Despite President Trump’s endorsement, we are seeing little progress in the Senate for the legislation and little appetite among senators to get in the middle of this long and messy fight.
Finally, Congress is in another shutdown, which they hope to fix either today or Tuesday, when the House votes on a continuing resolution to keep the government funded. A deal was struck last week, but not in time for the House to vote on it. But in our view, this might have become more complicated over the weekend, when Democrats won the traditionally Democratic 18th district in a special election to replace the recently deceased Representative Sylvester Turner (D-TX).
While it was not a surprising outcome, it means Republicans now have a one-seat majority in the House. For House Speaker Michael Johnson (R-LA), his life has become considerably more difficult because the odds of one Republican defecting to strike some sort of deal over something complete. So, brace for more drama in the House this week – and the rest of the year as this number is going to go back and forth from a one seat to two seat majority numerous times.
Below is the full report on financial regulatory-related events this week. Please let us know if you have any questions.
U.S. Congressional Hearings
U.S. Senate
· Tuesday, February 3, 10:00 a.m. – The Senate Judiciary Committee holds a hearing entitled “The Truth Revealed: Hidden Facts Regarding Nazis and Swiss Banks." Testifying will be:
Neil Barofsky, Independent ombudsperson and partner at Jenner & Block LLP, New York, N.Y.
Barbara Levi, Group general counsel for UBS Group AG and member of the Group Executive Board of UBS Group AG, Zurich, Switzerland
Rabbi Abraham Cooper, Associate dean and director of global social action at the Simon Wiesenthal Center, Los Angeles, Calif.
Robert Karofsky, Co-president for Global Wealth Management, president of UBS Americas and member of the Group Executive Board of UBS Group AG, New York, N.Y.
· Tuesday, February 3, 2:30 p.m. – The Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy, and Consumer Rights holds a hearings entitled “Examining the Competitive Impact of the Proposed Netflix-Warner Brothers Transaction.”
· Thursday, February 5, 10:00 a.m. – The Senate Banking Committee will hold a hearing entitled “The Financial Stability Oversight Council’s Annual Report to Congress.” Treasury Secretary Scott Bessent will testify.
House of Representatives
· Wednesday, February 4, 10:00 a.m. – The House Financial Service Committee will hold a hearing on the Annual Report of the Financial Stability Oversight Council. Treasury Secretary Scott Bessent will testify. You can find the Committee’s Memorandum on the hearing HERE.
· Wednesday, February 4, 2:00 p.m. – The House Financial Services Committee’s Subcommittee on Capital Markets will hold a hearing entitled “A New Day at the SEC: Restoring Accountability, Due Process, and Public Confidence.”
Federal Department & Regulatory Agency
Meetings & Events
The White House
· Monday, February 2, Time TBD – The White House is expected to host a summit with executives from the banking and cryptocurrency industries to discuss a path forward for landmark crypto legislation currently working its way through the Senate.
Federal Reserve Board and Federal Reserve Banks
· Monday, February 2, 12:30 p.m. – Atlanta Federal Reserve Bank President Raphael Bostic participates in moderated conversation on monetary policy before the Atlanta Rotary Club.
· Tuesday, February 3, 8:00 a.m. – Richmond Federal Reserve Bank President Thomas Barkin speaks before the SC First Steps “Early Advantage: Foundations for South Carolina's Economic Vitality" event.
· Wednesday, February 4, 6:30 p.m. – Federal Reserve Board Governor Lisa D. Cook gives a speech on monetary policy and the economic outlook at the Economic Club of Miami, Miami, Florida.
· Thursday, February 5, 10:50 a.m. – Atlanta Federal Reserve Bank President Raphael Bostic participates in a moderated conversation and Q&A on monetary policy and navigating the economic environment after graduation at an event hosted by the Clark Atlanta University School of Business.
· Thursday, February 5, 12:00 p.m. – Federal Reserve Board Vice Chair Philip N. Jefferson gives a speech on the economic outlook and supply-side inflation dynamics at a conference entitled: Supply-Side Factors and Inflation: What Have We Learned? Being hosted by The Brookings Institution, Washington, D.C.
U.S. Treasury Department
· Nothing significant to report.
Department of Commerce
· There are no significant events scheduled at this time.
Department of Housing and Urban Development
· There are no significant events scheduled at this time.
Securities and Exchange Commission
· There are no significant events scheduled at this time.
Commodities Futures Trading Commission
· Nothing significant to report.
Federal Deposit Insurance Corporation
· Nothing significant to report.
Office of the Comptroller of the Currency
· Nothing significant to report.
The Consumer Financial Protection Bureau
· There are no significant events scheduled at this time.
FINRA
· There are no significant events scheduled at this time.
National Credit Union Administration
· There are no significant events scheduled at this time.
Federal Trade Commission & Department of Justice Antitrust Division
· There are no significant events scheduled at this time.
Farm Credit Administration
· There are no significant events scheduled at this time.
Farm Credit System Insurance Corporation
· There are no significant events scheduled at this time.
International Monetary Fund & World Bank
· There are no significant events scheduled at this time.
North American Securities Administrators Association
· There are no significant events scheduled at this time.
Small Business Administration
· There are no significant events scheduled at this time.
Trade Associations & Think Tank Events
Trade Associations
· Nothing significant to report.
Think Tanks and Other Events
· Nothing significant to report.
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