The Roundup: A Quarter Point Rate Cut, Regulators Eye the $100B Asset Threshold, CFPB Agenda Includes Rollbacks, Compliance Priorities to Stay Ahead
Welcome to the PerformLine Regulatory Compliance Roundup, home of the latest news, articles, and reports from our industry, curated for you. Let’s get into it.
In this edition: Quarter point rate cut and more coming, regulators are eyeing the $100B asset threshold for banks, the CFPB has unveiled an agenda that may roll back may rulemakings and protections created under the Biden administration, the FDA sends out cease-and-desist letters targeting drugmaker TV ads as well as paid social-media influencer posts.
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Fed Cuts Rates by Quarter Point and Signals More Are Likely
The Federal Reserve approved a quarter-point interest rate cut today. In leading his colleagues to cut rates, Fed Chair Powell is making a calculation that the risks from inflation may be easier to manage and that the Fed should accept more inflation risk to prevent deeper cracks from imperiling the labor market. [ Wall Street Journal ]
Will Regulators Lift The $100B Threshold?
Regulators are weighing whether to raise the $100 billion asset threshold that subjects banks to stricter oversight, with industry hopes growing that it could be lifted as high as $250 billion. Such a move would significantly ease compliance requirements and costs for regional banks approaching the current limit, while signaling a broader shift toward deregulation. Though no official decision has been made, growing optimism reflects the possibility of meaningful relief for institutions caught in the existing regulatory band. [ American Banker ]
Significant Stat:
$7.5M
The amount the FTC fined an education technology company for not offering a simple cancellation mechanism and continuing subscription charges in violation of ROSCA.
The CFPB Unveils Plans to Roll Back Biden-Era Rules
The Consumer Financial Protection Bureau has unveiled a sweeping deregulatory agenda for the coming year, including 24 rulemakings aimed at rolling back or rewriting many Biden-era protections. Among the proposed changes: scaling back nonbank supervision in areas like auto finance and money transfers, revisiting open banking/data access rules, weakening the disparate-impact standard in fair lending, rescinding payday-lending rules, and streamlining mortgage servicing and loan-originator compensation regulations. [ American Banker ]
Executive Action Cracks Down on Misleading Pharma Ads
President Trump on Tuesday signed an executive action calling for stepped-up federal enforcement of rules for pharmaceutical ads.The enforcement effort targets drugmaker TV ads as well as paid social-media influencer posts and telehealth advertising, administration officials said. The FDA said it was sending about 100 companies cease-and-desist letters over advertisements and then thousands more would receive similar letters that warn about ads. [ Wall Street Journal ]
Where Compliance Priorities Must Be Focused
While federal agencies like the CFPB may be scaling back, state regulators, the FTC, and private litigants are filling the gaps. Subscription models, junk fees, and deceptive marketing remain top enforcement priorities, and compliance teams must stay proactive.
