Week InReview

Members of the INVESTORS Mortgage Securitization Council (MSC) were invited to attend a roundtable discussion at the U.S. Department of Treasury on Monday, May 1, from 1 - 4 p.m. The roundtable will be hosted by Craig Phillips, counselor to Treasury Secretary Steven Mnuchin, and will include a diverse group of market participants with an interest in the private label securitization markets.

The goals of the MSC are to represent the interests of INVESTORS members and their clients in encouraging gradual, well-planned GSE reform, combined with a process for reinvigorating the non-agency RMBS market. 

The focus of the MSC's commentary at the Treasury roundtable will most likely be the need for better investor protections, including the deal agent, bond holder communication, and standardized reps and warranties.
Fri Apr 27, 2017
Let's recap
In case you missed it . . .
CME spooks investors with warning on market data
Largest exchange company signals that the boom in selling market data may be easing (Apr 27)

Treasury Secretary Steven Mnuchin praised a sweeping Republican rewrite of the Dodd-Frank Wall Street Reform and Consumer Protection Act without explicitly endorsing it as the GOP administration and lawmakers work toward rolling back post-recession financial regulation (Apr 27)

House Republicans want to move quickly on passing their proposal to replace the Dodd-Frank Act, Financial Services Committee chair Jeb Hensarling said. But GOP leaders could face a hiccup before that vote because of opposition to a provision that would repeal the 2010 law's limits on debit card swipe fees (Apr 27)

Few agencies willing to reveal regulatory officer, task forces
Unclear whether many agencies have appointed regulatory reform officers; e xecutive order requires that officers, task forces be appointed by April 25; s cholar suggests agencies with political appointees probably further ahead (Apr 25)

Basel puts new banking policy initiatives on hold until 2019 pending review
The Basel Committee on Banking Supervision said that its priorities for the next two years would include finalizing a long-awaited overhaul of existing rules (Apr 25)
The Cyber Cafe
Cybersecurity news every Friday
Risks, rewards of running with the cybersecurity bulls
Growing cybersecurity risks draw players to crowded security-solutions field, opening investment opportunities; new investment increases chances of companies more quickly seeing advanced cybersecurity solutions.

FCA says firms ignoring cyber security basics
Financial services firms are often not getting the basics right on cyber security, leaving them vulnerable to attacks. This is the claim made by the U.K. Financial Conduct Authority's chief operating officer Nausicaa Delfas. In a speech on Apr 24, she said many companies falsely believed they getting the basics right when it came to cyber security. She cited research which showed that 10 vulnerabilities accounted for 85 per cent of successful breaches.

This is still the best way to protect your accounts
Looking to boost your cybersecurity? Turning on two-factor authentication whever possible is still the best way to increase security online.
House unanimously passes H.R. 1694
Would subject Fannie, Freddie to open records
(Apr 27) -- The House voted 425-0 to pass legislation that would subject Fannie Mae and Freddie Mac to records requests under the Freedom of Information Act if they remain under government conservatorship or are placed in receivership.
  • "What are we afraid of in terms of exposing the liabilities that Fannie and Freddie are creating for us?" -- Bill sponsor Jason Chaffetz (R-Utah), chairman of the House Oversight and Government Reform Committee, at a March 23 hearing.
  • Elijah Commings (D-Maryland), the panel's ranking Democrat urged the panel to consider whether Fannie and Freddie would be able to use exemptions under FOIA to protect sensitive commercial and financial information and examination records related to financial institutions.
  • A report from the Congressional Research Service (CRS) stated that private entities such as Fannie and Freddie aren't subject to other policies related to record keeping and public access. "It is not clear how an entity that is an agency for FOIA purposes, but not an agency for other purposes, would balance these constraints or incorporate new requirements," CRS wrote.
Meanwhile, at Treasury...
Mnuchin's take on Fannie, Freddie 
Apr 26) -- U.S. Treasury Secretary Steven Mnuchin says he's determined to change Fannie Mae and Freddie Mac 's line to Treasury.
  • "We need to have proper housing finance in this country."
  • No. 1 issue is we want to make sure we have proper liquidity in housing market, he said.
  • Mnuchin says we can't put taxpayers at risk and have a system where there's bailout of housing finance.
  • The administration is concerned about the growth of FHA loans.
Portfolio transfers from failed brokers
Trends in 'porting' customer portfolios discouraging: CFTC
(Apr 25) --  "The trend line [for porting] has been going in the wrong direction," said Robert Wasserman, chief counsel in the Commodity Futures Trading Commission's Division of Clearing and Risk (DCR) at a meeting of the regulator's Market Risk Advisory Committee.  Futures brokers are becoming more reluctant to take over customer portfolios held by other brokers that suddenly go out of business. 

Meeting agenda here.

Webcast of the meeting here.

CCP Risk Management Subcommittee final recommendations here.
Binge reading disorder
Hand-curated, chosen with love
Cheap ways to prevent executive burnout
Expensive 'holistic' leadership programs do not solve anything

Torching the modern-day Library of Alexandria
Somewhere at Google there is a database containing 25 million books and nobody is allowed to read them.