CREFC’s Executive Director Lisa Pendergast: About This Week’s Issue…
November 13, 2023
Welcome to the November 13, 2023, edition of Policy and Capital Markets Briefing.
There is no shortage of consequential news in our nation’s capital this fall. Top of list is:
- The growing possibility of a U.S. government shutdown; funding expires on November 17. Finding consensus on a long list of issues, including funding for Israel, Ukraine, and the U.S. border, will prove challenging.
- Expect to see a Continuing Resolution that avoids a shutdown and buys time for further negotiations.
- Recall Moody’s put the U.S. on notice of a possible U.S. debt downgrade, citing risks to the nation's fiscal strength and political polarization. A shutdown could make such a downgrade inevitable.
On the regulatory front,
- Scrutiny on SEC’s Climate Proposal. There’s movement on the SEC’s 2022 Climate Proposal, with SEC Commissioner Uyeda seeking a re-proposal, citing concerns the current iteration could prove costly and ineffective (the commissioner is not alone on that view).
- Notably, the House Financial Services Committee held a hearing on financial regulation and the Biden Administration.
- The hearing focused on the proposed bank capital revisions, known as the Basel III Endgame.
- Heightened scrutiny and talk over the proposed Basel rules yielded an extension of the comment period to mid-January. Needless to say, increased bank capital requirements in a market beset by challenged liquidity will only add to further distress, particularly in markets like CRE finance.
Also, inside this edition you’ll find a spotlight on CREFC’s B-Piece Investor Forum. As always, the issue closes out with a very useful Capital Markets Update.
Wishing everyone a productive week. Lisa