April 2024 Regulatory Update: Bank Supervision, Consumer Protection, and Market Enforcement

In this episode we examine the major financial regulatory and supervisory developments that shaped April 2024 across banking regulators, consumer protection agencies, market authorities, and state enforcement bodies. The discussion highlights how supervision, enforcement, and policy initiatives continued to evolve across both federal and state levels of the financial system.We begin with developments from the federal banking regulators. The episode reviews supervisory and policy updates from the FDIC, including new reporting on the resolution of large global systemically important banks and updates to the Deposit Insurance Fund restoration plan. We also discuss Community Reinvestment Act examination results, enforcement actions against banks and bank employees, and regulatory comment period extensions affecting bank mergers and major acquisition proposals.The conversation then turns to Federal Reserve activity and financial stability oversight. Topics include recent enforcement actions and the Federal Reserve’s Financial Stability Report, which identifies key risks facing the financial system, including persistent inflation pressures, policy uncertainty, and stress in commercial real estate markets.Next we explore consumer protection developments. The episode discusses findings related to credit reporting accuracy and regulatory attention on the treatment of fraudulent or trafficking related information in consumer credit files. We also examine a report on financial activity within online video games and virtual environments, highlighting emerging concerns around digital payments, lending features, and consumer protection gaps in virtual economies.The episode also reviews securities and derivatives regulation. Topics include enforcement actions related to violations of the SEC marketing rule for investment advisers and new CFTC rules modernizing large trader reporting in futures and options markets.Beyond financial regulators, the episode covers broader federal policy developments that affect financial institutions and the business environment. These include a new rule banning most employee non compete clauses, updates to health breach notification requirements that expand coverage to digital health tools, and enforcement actions targeting deceptive marketing practices and consumer billing schemes.We also examine anti money laundering policy discussions and regulatory developments involving real estate transactions, including coordinated comments from multiple state attorneys general supporting expanded reporting requirements aimed at reducing illicit financial activity in property markets.Finally, the episode reviews activity from state regulators and attorneys general. Topics include enforcement actions involving financial services companies, licensing and compliance actions by state banking departments, and consumer protection settlements addressing account restrictions and payment processing practices.Together these developments provide a comprehensive look at how federal and state regulators addressed banking supervision, consumer protection, market conduct, and enforcement priorities during April 2024.