A Thursday Morning Hodgepodge

Believe it or not, Christmas is only a week and a half away. Today’s news has me thinking that a lot of policymakers want to clean off their desks before they take their long winter naps.

NCUA to Consider RBC Compliance Extension

The NCUA Board holds its last meeting of the year today. Among the issues to be discussed is a final rule on risk-based capital. In July, NCUA proposed a second extension of its risk-based capital rule to January 2022. During this time, the NCUA Board will be further analyzing additional changes to the RBC rule, as well as considering the extent to which supplemental capital could be used to satisfy RBC requirements. This further delay is an addition to the NCUA’s earlier decision to raise the threshold level for RBC compliance from $100 million to $500 million. Why doesn’t NCUA just admit that the whole RBC idea was fatally flawed and scrap the whole thing?

CFPB Director Looks Back on First Year in Office

CFPB’s Director Kathy Kraninger used an opportunity before the National Association of Attorneys General to reflect on her first year and comment on some pending big-ticket items. She indicated that while her mind is still open to suggestions, the CFPB is taking a serious look at changing the payday lender regulations finalized in the closing days of the Cordray reign by scrapping the requirement that payday loans be subject to underwriting requirements. Keeping in mind that this is one man’s opinion, for you fans of the Cordray administration, you have to admit that Kraninger has been a refreshing change from the interim oversight of her former boss Mick Mulvaney. Let’s face it; it was always strange to have someone vehemently opposed to a Bureau to be in charge of it. As for us more moderate types, Kraninger has struck the appropriate balance between enforcement, regulation and common sense, which means that she hasn’t ignored the potentially negative impacts of well-intended regulations. I’m sure she is ecstatic to know that I have given her my stamp of approval.

NY Senate Republicans Dropping Like Flies

It was Watergate that condemned New York’s Assembly Republicans to permanent minority status, and it increasingly appears as if the election of Donald Trump will be dagger in the heart of the New York State Senate Republicans, at least if they ever thought they would have a chance of once again being in the majority. As of my last count, we are now up to as many as eight Republicans who have announced they either will not run for reelection or seek other seats. This is an amazing turnaround for an institution which not long ago was the best place for a Republican to be, short of statewide office.

The latest longtime senator to announce his departure is none other than Joe Robach of Rochester. He joins North Country’s Betty Little, Western New York Senator Michael Razenhofer and the Capital Region’s Joe Amedore. In addition, freshman Central New York Senator Bob Antonacci jumped ship and secured a judgeship. Further, Senators Chris Jacobs and Rob Ortt are both running for Congress. Remember folks, this is on top of the fact that the GOP is already down to 23 senators. The recent wave of retirements raises the real possibility that the Senate democrats will join the Assembly democrats in having supermajority control in both chambers. This may not seem like a big deal, but it gives the legislative leaders that much more leverage in negotiating against governors when they know they can override vetoes in a worst-case scenario.