President-elect Joe Biden on Tuesday appointed longtime credit union executive Bill Bynum and former Consumer Financial Protection Bureau Deputy Director Leandra English to his CFPB agency review team. The teams are designed to help ease the transition from Trump Administration agencies to Biden Administration agencies. The teams also include one that will examine the Federal Reserve, Banking and Securities Regulators. English is the team lead for the CFPB team. She served as deputy director of the CFPB under former Director Richard Cordray. Her appointment is likely a sign that Biden intends to re-invigorate the CFPB, which has tilted toward a
The Federal Reserve is now accepting applications for a pilot test program for its FedNow Service. Financial institutions, including credit unions, are among those eligible to apply, Fed officials said. Once it is implemented, the FedNow service will allow customers to send and receive payments at financial institutions instantly. Credit union trade groups have expressed their support for the program. The pilot program will include three phases: advisory, testing and closed-loop production. Institutions that are not members of the FedNow Community must first enroll by submitting a participant profile form. Organizations that are interested in participating must submit an application
A Federal Reserve U.S. Coin Task Force has developed a toolkit for financial institutions and retailers in an effort to push more coins into circulation.
In forming the task force earlier this year, Fed officials said that with many retail businesses where coins are used closed due to the coronavirus crisis, the normal coin circulation network has been disrupted. They said that there is not a shortage of coins, adding that more than $40 billion in coins are in circulation, but many of them are not being used.
Financial institutions are unlikely to face official enforcement actions if they commit small, isolated violations of the Bank Secrecy Act or Anti-Money Laundering rules, federal banking regulators, including the National Credit Union Administration, said last week.
The Federal Reserve’s FedNow payment system is expected to be launched in 2023 or 2024, even though many in the financial community have urged the agency to implement it sooner.
Once it is implemented, the Fed has said the service would allow customers to send and receive payments at financial institutions instantly.
Amid signs that federal pandemic assistance funds have not reached businesses that need them the most, Sen. Brian Schatz (D-Hawaii) this week introduced legislation creating a new $2 billion emergency fund for Community Development Financial Institutions.
The legislation, S. 4430, would automatically provide capital for CDFIs during a natural disaster or economic crisis. The legislation is cosponsored by nine Democrats and Independent Bernie Sanders of Vermont.
Presumptive Democratic presidential nominee Joe Biden said Tuesday that, if elected, he will push plans to use Community Development Financial Institutions to help close the racial wealth gap.
A draft of the 2020 national Democratic platform calls for an “up-dated and modernized version” of the Glass-Steagall Act and for an examination of postal banking.
The draft document, which the Democratic National Committee is scheduled to consider on Monday, said the party will push for “a new economic contract that provides access for all to reliable and affordable banking and financial services.”
It also calls for beefing up the Consumer Financial Protection Bureau and doubling funding for the Community Development Financial Institutions program.
A Democratic “unity” task force designed by supporters of presumptive Democratic presidential nominee Joe Biden and Sen. Bernie Sanders (I-Vt.) is recommending that post offices provide banking services to improve access to financial services.
Credit union trade groups are pushing the Federal Reserve to definitely state that it has no plans to reinstate a rule that limited consumers to six transactions a month from their savings account.