U.S. Financial Regulatory Week Ahead

Apr 28

Congress Returns to Work, HFSC Focuses on the Power of Proxy Advisors, Atkins Sworn in as SEC Chair, OCC Agenda Detailed, and Fed Releases Financial Stability Report

April 28 - May 2, 2025

Washington has just finished a frenetic World Bank/IMF Spring meeting week, but won’t be slowing down in the coming week. Congress returns to work after a two-week break and will hunker down and focus on hammering out the massive Reconciliation package. Achieving a successful outcome will not be easy or soon, as House and Senate Republicans continue to battle over basic elements of the tax portion of the bill. We also anticipate new battles emerging as members of Congress seek to restore budget cuts imposed by DOGE.

It appears the House Financial Services Committee (HFSC) intends to help with the budget-cut effort by taking funding from the Consumer Financial Protection Bureau (CFPB) while also eliminating the Public Company Accounting Oversight Board (PCAOB), folding its work back into the Securities and Exchange Commission. Of note, all collected fines, aside from money paid to direct victims, will be sent to the Treasury, helping to reduce the deficit. The HFSC will mark up legislation on Wednesday to make all this happen and is expected to pass on a strict party-line vote.

Over in the Senate, we will likely get clarity this week as to when Comptroller of the Currency nominee Jonathan Gould will get his final Senate confirmation vote and when the Senate Banking Committee will vote on the confirmation of Fed Governor Michelle Bowman as Vice Chair for Supervision.

In advance of Gould’s final vote, Acting Comptroller Rodney Hood will be giving a talk on the OCC’s work and agenda on fintech, debanking, and the agency’s overall regulatory priorities at a conference this week.

Credit union regulation gets a lot of attention this week. Former National Credit Union Administration (NCUA) board members Todd Harper (who was NCUA Chair under President Biden) and Tanya Otsuka announced they have filed suit against President Trump for firing them earlier this month. Harper will be speaking at the Brookings Institution on Thursday about the future of credit union regulation and what he thinks is going to happen at the NCUA.

Looking back at the last week, Paul Atkins was sworn in as the Securities and Exchange Commission’s 34th Chairman. And, as the always excellent Capitol Account pointed out, he was immediately flooded with letters and memos from a host of financial trade groups pleading for regulatory relief and/or offering the new chair advice on all the things he should do (and not do). As Capital Account pointed out, among the many issues raised ranged from enforcement to e-delivery, to corporate governance to all things crypto (side note: Capitol Account is the best daily report on what’s going on with regard to financial services and well worth the subscription. It’s a true must-read).

Finally, we would note that the Federal Reserve released its semi-annual Financial Stability Report last week. You can find the report HERE. Among the rising risks to overall financial stability cited by the Fed include global trade uncertainty and continued worry about the sustainability of US debt, including a significant rise in concern over the functioning of US Treasury markets. The report also raised concerns over hedge fund leverage, noting that the largest funds are now at historic highs.

Below is all we see happening in the coming week. Please let us know if you have any questions.

U.S. Congressional Hearings

U.S. Senate

· Thursday, May 1, 10:00 a.m. – The Senate Banking Committee will hold a hearing entitled “Examining Insurance Markets and the Role of Mitigation Policies.”

House of Representatives

· Tuesday, April 29, 10:00 a.m. – The House Financial Services Committee’s Subcommittee on Capital Markets will hold a hearing entitled “Regulatory Overreach: The Price Tag on American Prosperity.”

· Tuesday, April 29, 2:00 p.m. – The House Financial Services Committee will hold a hearing entitled “Exposing the Proxy Advisory Cartel: How ISS & Glass Lewis Influence Markets.”

Federal Department & Regulatory Agency Meetings & Events

Federal Reserve Board and Federal Reserve Banks

· There are no significant events or speeches scheduled at this time.

U.S. Treasury Department