Metro Lex News

In a recent development, Congressman Andy Barr, Chairman of the Subcommittee on Financial Institutions and Monetary Policy, has led a group of 23 Republicans on the House Financial Services Committee in demanding transparency from Federal Reserve Chairman Jerome Powell. The demand comes in response to a leak of nonpublic confidential supervisory information (CSI) involving multiple financial firms that occurred on August 30.

The lawmakers have expressed their concerns about the leaks of confidential, market-moving information from the Federal Reserve regarding supervisory and regulatory plans and actions. They point out that on July 17, ten days before the Federal Reserve issued notices of proposed rulemakings (NPRs), details of the proposals were reported in the press. These details included significant and accurate aspects of the NPRs, which were not provided to the Financial Services Committee before publication.

Furthermore, on August 30, confidential supervisory information (CSI) was revealed in the press. This information included details of regulatory warnings labeled matters requiring attention (MRAs) and matters requiring immediate attention (MRIAs) for specific financial firms. The press reports sourced the nonpublic CSI information from "people familiar with the matter." The lawmakers find it unlikely that these individuals are from the listed firms or that the press reports are based on unsubstantiated speculation. They are concerned that the leaks may have originated from within the Federal Reserve or other agencies with whom the CSI was shared.

The lawmakers emphasize that any leak of CSI, particularly when tied to individual firms' identities, is a revelation of highly market-sensitive information. They believe that accountability and transparency are crucial in addressing this issue. Therefore, they have urged the Federal Reserve to provide additional details to ensure accountability and to identify the source of the leaks.

The full letter from Congressman Barr and the House Financial Services Committee can be accessed for further reference.

This demand for transparency is a significant step towards addressing the leaks of confidential information and ensuring the integrity and fairness of the financial system. The Federal Reserve's response to this request for information will be closely watched, as it will play a crucial role in maintaining public trust and confidence in the regulatory process.

For additional details, please follow this link: https://barr.house.gov/press-releases?ID=3006564D-1169-49D6-A1B0-BD351BFD86A3