FinCEN: Banks must consider crypto risk exposure

For banks, more stimulus could come with a downside | A look at how the too-big-to-fail reforms have worked out | Commentary: Dwindling hedging options could hurt stocks Created for {EMAIL} | [Web Version]( October 7, 2020 [SIGN UP]( ⋅ [SHARE]( [] Risk Management and Insurance [] [For banks, more stimulus could come with a downside]( The Federal Reserve and US Treasury may have to deliver further stimulus to keep the economy running but that has the potential to create problems for the nation's biggest banks. If further government stimulus results in more deposits on banks' balance sheets, as it has during the first wave of relief, it could raise the capital requirements imposed on them by regulators. Full Story: [The Wall Street Journal (tiered subscription model)]( (10/5) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] [A look at how the too-big-to-fail reforms have worked out]( Federal Reserve Bank of New York researcher Asani Sarkar analyzes the conclusions of a June 2020 report from the Financial Stability Board assessing the effects of the post-crisis too-big-to-fail reforms on global systemically important banks. Full Story: [Liberty Street Economics (Federal Reserve Bank of New York)]( (9/30) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] - [Commentary: Dwindling hedging options could hurt stocks]( The Wall Street Journal (tiered subscription model) (10/3) [] - [Fed official: No guarantee on forward-looking SOFR]( MLex (free content) (9/30) [] Cybersecurity [] [FinCEN: Banks must consider crypto risk exposure]( Financial Crimes Enforcement Network Director Kenneth Blanco told a virtual conference that financial institutions must assess their cryptocurrency risk exposure. Blanco said banks need to ask themselves: "Do we have the tools we need to identify and report potentially suspicious activity occurring through our financial institution?" Full Story: [The Block]( (9/30) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] Government Regulation [] [Banks ask regulators to hold off on liquidity rule]( US regulators are working to finalize the Net Stable Funding Ratio, a new liquidity rule proposed in 2016, but some in the industry are pointing to the risks of doing so during the coronavirus pandemic. "It does make it ironic that they are adopting this in the wake of events for which it was demonstrably not needed, and it would have made it worse," said Bank Policy Institute Chief Economist Bill Nelson. Full Story: [American Banker online (subscription required)]( (10/5) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] - [Fed must overshoot inflation target, Evans says]( Reuters (10/5) [] Innovation [] [Visa, Mastercard eye opportunities in digital payments]( Mastercard and Visa are seeking roles in reshaping the payment system amid a surge in digital payments. Both firms have responded to challenges from fast automated clearinghouses and technology giants through partnerships and acquisitions, in a shift away from their traditional credit card business. Full Story: [The Economist (tiered subscription model)]( (10/3) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] News from Aon [] To deliver ESG progress, go beyond the ratings Corporate boards and executives, institutional asset managers and investors are all increasingly focused on environment, social and governance (ESG) issues. 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