The underlying logic of this enforcement action seems similar to various enforcement actions that the SEC brings as to securities products, particularly mutual funds, where a broker-dealer is charged, essentially, for failing to put the investor into the best fund or class of securities of a fund.  

The CFPB is adopting policies that will apply going forward, right before a new Administration takes office. Why not just leave the approvals in a ready-to-sign state, and let the new Administration decide whether to adopt or tinker?  

According to the Report, the major benefit of sponsored (centrally cleared) repo is that it provides broker-dealers and banks an accounting benefit. However, since this accounting benefit does not change the fundamental economics or risk of a transaction, it is not obvious why central clearing should prevent market disruptions caused by real world events, such as the Covid-19 pandemic.  

It is troublesome that the FRBNY does not seem to understand how cleared repo works. For…

Under Mr. Behnam's leadership, the CFTC successfully avoided most of the criticisms of regulatory over-reach and exceeding the limits of statutory authority that have been leveled at the SEC. (Though there have been missteps, for example attempting .)

Mr. Behnam's remark that the CFTC requires more funding to combat climate change is also an indicator of the great temptation—to which all the regulators seem vulnerable—to chase issues of political interest that are outside of the…