Authorised intermediaries are a subset of banks, but unlike banks, they are allowed to lend money.
They are supposed to provide loans, but only for a limited period of time and are subject to regulatory scrutiny, and some are subject even to investigations for failing to disclose their relationship with clients.
A new Department of Justice investigation, however, has highlighted that the US government is now trying to impose a ban on the intermediaries’ access to the federal lending system.
It is part of the broader crackdown on bank credit by the Trump Administration that has seen the US economy shrink by more than 2% over the last six months.
This is not the first time that the Trump administration has been criticised for imposing a regulatory burden on bank lending.
In January 2018, the US Treasury Department issued guidance that directed the Federal Reserve to create a framework for the establishment of the National Banking Credit System (NBCS).
The Treasury Department’s Office of the Inspector General has also recently examined the Treasury’s policy on bank-sponsored debt (BSP) which has seen banks subject to a variety of new rules and regulations.
In July 2018, a coalition of leading financial institutions including the National Association of Realtors (NAIRU), the National Credit Union Administration (NCUA), the Federal Deposit Insurance Corporation (FDIC), the U.S. Commodity Futures Trading Commission (CFTC), and other federal agencies issued a joint letter to Congress asking for “appropriate guidance” on how the US banking system could better regulate the financial services industry.
This comes on top of the Treasury Department guidance that the Federal Housing Finance Agency (FHFA) had already issued in September 2018, in which it warned that “bank supervision and regulation of the financial sector are essential to maintaining a sound, safe and efficient financial system that serves the economic interests of all Americans”.
In its September 2018 guidance, the Department of Treasury also suggested that banks be subject to stricter “capital requirements” and a “risk management regime”.
In an effort to increase transparency in the banking industry, the Obama Administration also issued guidance in May 2018, which suggested that financial institutions should disclose the amount of capital they hold, as well as the size of their balance sheet, and whether they have any liquidity shortfalls or reserves.
The Department of the Interior in July 2018 also suggested increasing the minimum balance sheet requirement for new banks to $10 billion.
This suggests that the government is trying to encourage the banking sector to reveal the full amount of assets and liabilities held in their accounts, as a way of protecting them from predatory lending.
It would also help to ensure that banks can better serve consumers by reducing the number of times they are required to make loan payments.
On the other hand, it is not clear whether the Federal Financial Institutions Association (FFIA), a group of major banks, supports these proposed regulations.
It also has concerns about the impact of regulations on the US financial sector and the banking system as a whole.
A recent report by the FTI Consulting Group, a financial services consultancy, stated that “regulatory requirements on the banking and credit sectors would result in the closure of the banks’ businesses and harm the ability of banks to compete globally and maintain sustainable business models in the longer term.”
In addition to the new regulations on bank intermediaries, the Treasury and the Federal Bureau of Investigation have also been pushing for the creation of a new Financial Terrorism Task Force, which would oversee the use of “banking and financial services companies as front companies for terrorism financing”.
According to a report by The New York Times, the task force is being designed to investigate financial crimes against the US and other countries, as “the financial sector’s ability to respond to such crimes has largely stagnated for decades.”
It also suggests that it could be a source of increasing pressure on banks to cooperate with the government’s investigations.
The Financial Crimes Enforcement Network (FinCEN) is currently examining the possibility of the creation a new terrorist tax, or a similar measure, to curb the financing of terrorism.
FinCEN, which is charged with cracking down on financial crime, has also suggested in the past that it may create a new “counterfeit” tax to curb counterfeiting and money laundering.
FinTech companies, including those in the tech space, have also raised concerns about these new regulations.
As part of their efforts to address the financial industry’s problems, the Trump Department of Commerce and Treasury have announced a new initiative to increase the number and diversity of financial service companies.
The US is the world’s largest financial services market, accounting for more than 60% of global financial transactions and more than $US10 trillion in annual revenue.
The number of US financial service providers has grown by an average of 14% per year, but it has also fallen by 1% since Trump took office.
This has forced many firms to consolidate their businesses or even leave the country altogether.
The financial industry is now looking to the United States for solutions to its financial problems.
The Trump administration is also considering a