Capitol Account

New Basel Plan Provokes Little Friction at House Hearing

Robert Schmidt — Tue, 28 Apr 2026 23:38:29 GMT

The 2023 Basel endgame proposal sparked an industry revolt and a lobbying campaign complete with ads at Washington bus stops. The latest version is shaping up to be a far less controversial affair. Case in point: today’s House Financial Services Committee hearing, which was largely devoid of the political discord that greeted the earlier effort.

Republic…

Opponents Take 'Last, Best' Crack at Overturning SEC Gag Rule

Robert Schmidt — Mon, 27 Apr 2026 23:53:18 GMT

For more than 50 years, the SEC has demanded that people settling enforcement cases forfeit their right to dispute the charges – or even publicly tell their side of the story. The “gag rule” has long been criticized as a First Amendment violation, but it’s never been abandoned. Now, a small band of determined opponents is taking another run at overturni…

From Sleepy to Proactive: Financial Services Forum Ups Its Washington Game

Robert Schmidt — Fri, 24 Apr 2026 23:33:39 GMT

Friday Q and A: Big banks have been on the defensive in Washington since the 2008 financial crisis, when taxpayer-funded bailouts left them with a “too-big-to-fail” reputation. They have been trying to shake off that albatross ever since, with limited success. Now, they’re shifting course.

This week we sat down with Financial Services Forum President Ama…

'You Can't Always Get What You Want.' Big Bank CEOs Divided on Capital Plan

Robert Schmidt — Thu, 23 Apr 2026 23:15:28 GMT

In releasing their revised Basel capital plan last month, bank regulators made clear that it would loosen requirements across the industry. But as big banks digest the complicated proposal, it turns out that the largesse may not be spread out so evenly. The result: a fissure is emerging among Wall Street’s top leaders about how forcefully to push back –…

Housing Overseers Embrace Credit Score Competition

Robert Schmidt — Wed, 22 Apr 2026 23:29:46 GMT

The Trump administration’s two top housing overseers moved to expand the credit-scoring methods available for mortgage lenders, unveiling a plan designed to boost home ownership and bring competition to a market long dominated by one company. “This is a very big deal,” FHFA Director Bill Pulte declared at a press conference, where his characteristic con…

Warsh Unruffled at Witness Table, but Confirmation Remains in Limbo

Robert Schmidt — Tue, 21 Apr 2026 23:28:42 GMT

If a smooth confirmation hearing were the only thing standing between Kevin Warsh and the Fed chairmanship, he would be a virtual lock for the job. The financier and former central bank governor was polished and largely unflappable today, parrying Democratic attacks about his personal fortune and dismissing accusations of fealty to Donald Trump.

“Politic…

Wells Fargo CEO Basks in Friendlier Washington Climate

Robert Schmidt — Mon, 20 Apr 2026 23:55:56 GMT

Making a rare public appearance in D.C., Wells Fargo’s Charlie Scharf was in high spirits – and for good reason. The giant bank he runs, which was constrained by a strict asset cap for most of his time as CEO, has been breathing easier since the Fed lifted the stricture last year. In fact, enough time has passed that Scharf told a packed house at the Ec…

`We've Never Quite Seen it as Severe as This.' Talking Attacks on ESG and Shareholder Proposals With a Longtime Advocate

Robert Schmidt — Fri, 17 Apr 2026 23:40:53 GMT

Friday Q and A: It may garner fewer headlines than crypto regulation, but SEC Chairman Paul Atkins’ decision to stop reviewing shareholder proposals this year has caused a major stir in corporate governance circles. Critics see the move as a harbinger of a larger effort to fundamentally tilt the balance of power between companies and their investors – a…

Selig's Embrace of Prediction Markets Draws Fire From House Democrats

Robert Schmidt — Thu, 16 Apr 2026 23:46:14 GMT

The CFTC’s aggressive assertion of authority over prediction markets dominated Mike Selig’s first appearance before the House Agriculture Committee, as Democrats blasted him for embracing event contracts that allow retail traders to wager on sports and geopolitics. The attacks, though unsurprising, made for a long and often contentious day for the chair…

OCC Chief Looks to Bolster Banks in Interchange Case

Robert Schmidt — Wed, 15 Apr 2026 23:49:40 GMT

As banks pursue a federal appeals court challenge to an Illinois law that is set to ban swipe fees on taxes and tips, Comptroller Jonathan Gould is taking matters into his own hands. The OCC chief this week signaled that he intends to issue a pair of regulatory actions to preempt the state’s statute – and potentially deter other jurisdictions from tryin…

Atkins' Plan for Overhauling Corporate Disclosure Draws Outpouring of Divergent Views

Robert Schmidt — Tue, 14 Apr 2026 23:36:43 GMT

Paul Atkins has recently been brandishing an energy company’s annual report to illustrate why he wants to cut back on corporate disclosure requirements. Pointing to a stack of nearly 1,000 pages during recent congressional testimony, he wondered how many investors would bother to read through a filing that “rivals ‘War and Peace.’”

The answer, it turns o…

As SEC Readies Tokenization Guidance, Crypto Firms Take Aim at Corporate Consent Requirement

Robert Schmidt — Mon, 13 Apr 2026 23:22:24 GMT

As the SEC puts the finishing touches on an “innovation exemption,” the crypto industry is mounting a last-minute campaign to reshape one of the key aspects of the plan: a requirement that companies provide permission before their stocks can be tokenized.

The angst has been building since Chairman Paul Atkins, previewing the guidance at a conference last…

Talking With Robinhood's Point Man on Event Contracts

Robert Schmidt — Fri, 10 Apr 2026 23:39:09 GMT

Friday Q and A: With all the sturm und drang surrounding prediction markets, it’s easy to forget that they burst into the mainstream less than two years ago. So it’s not surprising that their regulatory framework is far from settled.

This week, we sat down with someone whose work on the issue spans more than a decade. Jon DeBord, Robinhood Markets’ head …

Banks Warily Eye FCC Plan to 'Onshore' Call Centers

Robert Schmidt — Thu, 09 Apr 2026 23:26:39 GMT

Financial executives don’t usually lose much sleep over what’s happening at the FCC, but an unapologetically populist rule proposal that seeks to “onshore” foreign call centers is causing consternation at some of the largest banks. The regulator’s plan largely focuses on telecommunications firms, but it also raises the possibility of applying the direct…

A Notable Omission in Basel Plan Draws Scrutiny from Critics

Robert Schmidt — Wed, 08 Apr 2026 23:11:46 GMT

The banking agencies’ revised Basel plan clocks in at some 1,800 pages, but as lawyers pore over the details, some have been struck by what has been left out. Nowhere does the proposal explain how the Fed, FDIC and OCC are complying with a congressional directive that sets a minimum mandatory capital level for U.S. banks.

The omission is notable because …

Bank Overseers Move to Overhaul AML Rules

Robert Schmidt — Tue, 07 Apr 2026 23:59:20 GMT

The Treasury Department and banking regulators advanced one of the industry’s top deregulatory priorities today, launching a long-awaited rewrite of the rules governing financial firms’ anti-money laundering programs. And though the details trickled out quietly – via written statements and an uneventful FDIC board meeting – officials cast it as a profou…

Dimon's Deep Thoughts on Banking Regulation

Robert Schmidt — Mon, 06 Apr 2026 23:43:58 GMT

Jamie Dimon is certainly feeling better about the regulatory climate than he was a year ago when Wall Street was still recovering from the Biden administration’s onslaught of rules. Surprisingly, however, the JPMorgan Chase CEO’s annual letter to shareholders showed he still has plenty to get off his chest about what’s going on in Washington.

“Change is …

A Federal Appeals Court's 'Rude Wake-Up Call' for Finra Enforcement

Robert Schmidt — Thu, 02 Apr 2026 23:46:54 GMT

[Note to readers: Capitol Account will be off tomorrow for Good Friday.]

Conservatives who have been on a mission to constrain Finra have yet to see their efforts come to fruition, despite filing a flurry of challenges to its oversight power in the federal courts. But a recent Sixth Circuit decision is giving opponents hope that the tide may be turning a…

Trump Administration Retreats on Mass Firings at CFPB, but Still Wants Major Cuts

Robert Schmidt — Wed, 01 Apr 2026 23:33:38 GMT

The Trump administration backed off its effort to lay off nearly the entire CFPB staff, telling a federal appeals court late last night that it now intends to retain a workforce about one-third of its peak size in the Biden era. The surprise move arguably marks a win for the employees’ union challenging the dismissals, yet there’s a growing fear among t…

New PCAOB Chief Pledges to 'Get Back to the Basics'

Robert Schmidt — Tue, 31 Mar 2026 23:34:40 GMT

Demetrios “Jim” Logothetis made his public debut at the PCAOB this morning, emphasizing that the board will “get back to the basics – back to the fundamentals of audit quality, investor protection and disciplined, responsible oversight.” The new chairman has said little about his agenda since emerging as the dark horse pick for the job in January, but a…