Sundry Edition
A Biweekly Newsletter by Salt of the Earth Consulting, LLC
Vol. 4 | August 10, 2022
Big Tech & Regulatory Intervention
By Gretchen Bruinsma
In 2020, American Banker asked the question: can regulators catch up to tech changes? The article (linked below) offers predictions and valuable insights from people we follow in the industry, including Amy Friend, Jo Ann Barefoot, and Michael Barr – all three of whom we consider ‘salt of the earth’. In the article, Michael Barr, Vice Chair for Supervision, Federal Reserve Board of Governors, commented, “It’s … likely that you’ll see a series of interventions, maybe around many mini-crises, or maybe around many mini-possibilities for innovation or mini-realizations about important areas.”
These ‘mini-interventions’ are occurring now with tech companies like Apple and Robinhood. Last month, Financial Times reported that the Consumer Financial Protection Bureau would be looking into the implications of Apple and other tech companies entering the buy now, pay later lending business space. And The Wall Street Journal shared earlier this month that Robinhood was fined $30 million by The New York State Department of Financial Services for “alleged violations of anti-money-laundering and cybersecurity regulations, in the department’s first crypto enforcement action.” Both articles are linked below, as well as an article from Reuters which details how tech companies would be a “timely fit” for the Financial Stability Oversight Council (FSOC), which “is charged with identifying risks to the financial stability of the United States; promoting market discipline; and responding to emerging risks to the stability of the United States’ financial system.”
Interested in the regulatory services that Salt of the Earth Consulting has to offer?
Kathy Dick, SOTE’s Founder & CEO, has over 26 years of regulatory experience from her work at the Office of the Comptroller of the Currency (OCC). SOTE is able to provide regulatory services in the forms of: preparing for regulatory examinations, responding to regulatory findings, advising on actions to improve regulatory relations, and supporting executives overseeing regulatory remediation efforts. Want to learn more about what we offer? Click Here to read about all of our services.
What We’re Reading…
Food For Thought…
“Nearly 3,000 miles separate Silicon Valley and Washington, D.C. But comparing the pace of progress in the two locales, they may as well be different solar systems.“
What We’re Listening To…
NOTHING EVER CHANGES
We Were Promised Jetpacks
The upbeat song from this Scottish indie rock band features lyrics such as “Nothing ever happens unless you set yourself a challenge” and “If nothing’s ventured, nothing’s gained” — both of which are fitting sentiments for the financial service industry to keep in mind when navigating how to regulate the new services tech companies are offering. Plus it is just a great song!
Salt of the Earth Consulting 