Interest rates

Fed signals rates will stay near zero for at least three years

The central bank said it would keep interest rates at current levels through at least to help the U.S. economy recover from the coronavirus pandemic.

September 16

OpinionHousing market needs SOFR alternative — now

This proposed Libor replacement is an imaginary, backward-looking benchmark dreamed up by the economists at the Fed with no discernible market.

September 2

Christopher Whalen

Chairman

Whalen Global Advisors LLC

SOFR

PodcastLibor is out, but SOFR isn't quite in

As the discredited Libor interest rate benchmark enters its last months, some banks are turning away from the repo-based alternative that regulators prefer. What could go wrong?

By John Heltman

August 12

Lawsuits

States' lawsuit alleges OCC rule enables 'rent-a-bank’ schemes

The complaint filed by New York, California and Illinois argues that the regulation, issued in response to the 2015 Madden decision, undermines state laws intended to protect consumers.

July 29

The OCC's rule was meant to help banks avoid the effects of the 2015 court decision in Madden v. Midland Funding. The ruling cast doubt on the longtime legal principle that a loan is "valid when made."

LIBOR

Libor transition recommendation gets boost from further ARRC guidance

Newly published conventions from an industry-led benchmark replacement study group could spark adoption of more built-in rate transition plans into loan documents.

By John Hintze

July 26

CFPB

CFPB proposes rule to facilitate Libor transition for creditors

The Consumer Financial Protection Bureau seeks to address challenged posed by the sunset of the London interbank offered rate at the end of 2021.

By Hannah Lang

June 4

OCC

OCC finishes rule meant to sidestep 'Madden' ruling

The new regulation is intended as a workaround for banks affected by the 2015 decision that created legal uncertainty for loans sold across state lines.

By Brendan Pedersen

May 29

The OCC's rule seeks to clarify that a loan's interest rate can remain legally intact even after it is acquired by a purchaser in a state with a lower rate cap.

GSEs

GSEs issue Libor-to-SOFR transition playbook

Fannie Mae and Freddie Mac have different timelines for the switch.

By Brad Finkelstein

May 28

Federal Reserve

Fed can do only so much to limit pandemic's economic hit: Powell

The head of the U.S. central bank said its emergency credit programs were not designed to prop businesses up over the long term.

By Hannah Lang

May 13

“The recovery may take some time to gather momentum, and the passage of time can turn liquidity problems into solvency problems,” said Fed Chairman Jerome Powell.

Interest rates

JPMorgan says benefit of negative U.S. rate might outweigh costs

A negative Federal Reserve policy rate is still improbable, but if it were to happen it could be a net benefit, according to a note from JPMorgan Chase.

May 13