Quantitative easing 30 billion

Leading the Past WeekWhile the Senate was on recess, the House was in, but staffs from both budget committees were hard at work trying to put together a budget deal.  By the end of the week, rumors were circulating that a deal that would modestly raise the $967 billion discretionary spending level under the sequester by $34 billion to $1.001 trillion for FY2014, with the increase being distributed evenly across domestic and defense spending. While this would still be a decrease in defense spending from the last fiscal year, it would be $17 billion more than anticipated under FY2014 sequester levels.While it remains to be seen if negotiators can come together on a budget deal, the week did close with a better than expected jobs report. The economy added 203,000 jobs in November with the unemployment rate dropping to 7 percent. This successful jobs report was viewed by some as a potential key factor for the Federal Open Market Committee (FOMC) discussion later this month focusing on … [Read more...] about Financial Services Legislative and Regulatory Law Update

Last week closed with the long anticipated ability-to-repay and qualified mortgage rules coming into full effect. The rules, meant to ensure that borrowers will be able to repay their mortgage, are intended to prevent businesses from lending abuses and other deceptive practices. These rules mark the beginning of even more changes to the housing market as Mel Watt takes the reins at the Federal Housing Finance Agency (FHFA), the Senate Banking Committee continues to debate housing finance reform, and more rules from the Consumer Financial Protection Bureau (CFPB) are expected to make changes to the mortgage market. Even as the rules took effect, minutes from last month’s Federal Open Markets Committee (FOMC) meeting indicated that though members agreed that the taper was appropriate, it is possible the housing recovery could be impacted.Also closing out the week was far lower than expected job estimates for December. Although analysts were largely predicted a month of strong job … [Read more...] about Financial Services Legislative and Regulatory Update – January 13, 2014

Financial Services Legislative and Regulatory UpdateLeading the Past WeekYesterday marked the 3rd Anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Now several years removed from the passage of the law, regulators continue to work towards implementation of the financial reforms with strong indications that most major rulemakings will be completed by the end of the year. For example, last week, in addition to finalizing the cross-border derivatives rules, regulators also hinted that several other key portions of the law could be finalized in coming months, including the CEO pay ratio rule at the Securities and Exchange Commission (SEC) and a re-proposed fiduciary definition at the Department of Labor (DOL). As the Dodd-Frank Act continues to be implemented in the aftermath of the financial crisis that prompted the reforms, Congress is now turning its focus on another major reform, this time focusing on the nation’s housing finance … [Read more...] about Financial Services Legislative and Regulatory Update – July 22, 2013

Leading the Past WeekLast week ended with a stronger than expected jobs report at plus 204,000 jobs, a stronger than anticipated announcement of economic growth, at 2.8%, and an internet company stock “popping” on the IPO.  It was almost as if someone who had been in a coma since March 10, 2000 suddenly woke up, they might not think anything had changed -- except that they would likely be confused as to why the Office of Management and Budget (OMB) was reporting that the federal government shutdown cost taxpayers $2 billion dollars, and why the Republicans were battling with a Tea Party. So while those of us in northern climates may wish it was March, we are, in fact, in November, and with the deadline for the budget conference just about one month away, lawmakers appear to be refocusing their attention to potential tax cuts and entitlement reforms on which budget negotiators may be able to find bipartisan agreement. Last week, several lawmakers … [Read more...] about Financial Services Legislative and Regulatory Law Update – November 11, 2013

Leading the Past Week Congress returned from a two-week recess and the President finally released his FY14 Budget, which was immediately attacked by friend and foe alike. Some view this bipartisan attack as a sign that the President made a real effort to offer a framework for serious negotiation. Later in the week the President met with fifteen CEOs from some of the largest financial institutions, including: JP Morgan CEO Jamie Diamond, Goldman Sachs CEO Lloyd Blankfein, AIG CEO, Bob Benmosche, Citigroup CEO Michael Corbat, MetLife CEO Steve Kandarian, Bank of America CEO Brian Moynihan, in a meeting generally described as positive. Although there weren’t any detailed press accounts of the meeting, other than that it included discussion of immigration, cybersecurity, the stability of the financial system, and the nation’s long-term fiscal health, one wonders whether the CEOs shared their thoughts about a leaked draft of legislation being pushed by Senators Brown and Vitter … [Read more...] about Financial Services Legislative and Regulatory Update – Week of April 15, 2013