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          the Federal Housing Finance Agency said yesterday. The total   well,” the groups wrote in a letter to House Energy and
          book value of the FHLB’s eligible collateral rose to $2.8 trillion,   Commerce committee leaders, who had requested comments
          an increase of 21 percent from a year prior.           on data breach legislation. “Protecting this system is a shared
                                                                 responsibility of all parties involved and we must work together
          Whole loans accounted for 61 percent of all eligible collateral
          pledged to the FHLBs, while other real estate-related collateral   to invest the necessary resources to combat never-ending threats
          accounted for 29 percent,  securities accounted for 8 percent   to the payments system.”
          and community financial institution collateral accounted for 2   The groups called specifically for legislation that would require
          percent.                                               all entities to protect consumers’ sensitive personal and financial
                                                                 data, notify consumers in a timely manner in the event of a
          To read more visit:
          ReportDocuments/FHLB-Collateral-Pledged-Report-Dec2017.  breach and ensure compliance via appropriate federal and state
          pdf                                                    oversight. They added that any national data breach legislation
                                                                 “must ensure that all entities that handle consumers’ sensitive
                                                                 financial data have in place a robust – yet flexible and scalable
          Fed Issues Final Rules                                 – process to protect data, which must be coupled with effective
          Amending Regs A, D                                     oversight and enforcement procedures to ensure accountability
                                                                 and compliance.”
          The Federal Reserve adopted a final
          rule to increase the primary credit
          rate at the Federal Reserve Banks                      Senate Blocks Garrett
          from 1.75 percent to 2 percent. The                    Nomination to Lead Ex-Im Bank
          secondary credit rate has also been
          increased from 2.25 to 2.50 percent.                   By a vote of 13 to 10, the Senate Banking Committee has
                                                                 rejected the nomination of former Rep. Scott Garrett (R-N.J)
          In addition, the Fed adopted a final                   to lead the Export-Import Bank. Sens. Mike Rounds (R-S.D.)
          rule to revise the rate of interest paid on balances maintained   and Tim Scott (R-S.C.) joined Democrats in opposing the
          to satisfy reserve balance requirements (IORR) and the rate   confirmation of Garrett, who has been a vocal critic of the bank
          of interest paid on excess balances (IOER) maintained at   in the past.
          Federal Reserve banks by or on behalf of eligible institutions.
          Both IORR and IOER increased 0.25 percentage points to 1.5   The committee approved four other nominees to serve on the
          percent.                                               Ex-Im Bank’s board, including Rep. Spencer Bachus (R-Ala.),
                                                                 Kimberly Reed, Judith Pryor and Claudia Slacik. While the
          To read the Reg A final rule visit: https://s3.amazonaws.  nominees were confirmed with bipartisan support by the
          com/  committee, their nominations could face challenges before the
          To read the Reg D final rule visit: https://s3.amazonaws.  full Senate in the weeks ahead; Sens. Richard Shelby (R-Ala.)
          com/  and Pat Toomey (R-Pa.) have previously said they would work
                                                                 to block the nominations from moving forward if Garrett was
          Trade Associations Urge                                not confirmed.
          Congress to Pursue National                            Associations Call on IRS to Fix
          Data Breach Standard                                   Tax Transcript Issue

          ABA, ICBA and five other                               In a comment letter with
          financial trade associations                           eight trade associations,
          called on Congress to move                             ABA and ICBA urged the
          forward with legislation to                            IRS to take immediate
          implement  strong national                             steps to fix problems with the tax transcript process that could
          data security and breach                               result in significant delays for consumers attempting to purchase
          notification requirements                              or refinance a home. The IRS recently made changes (including
          that would replace the                                 the incorporation of multifactor authentication) to its system
          current inconsistent patchwork of state laws.
                                                                 for processing tax transcript requests, which lenders are often
          “Our existing payments system serves hundreds of millions of   required to use to verify mortgage purchases or refinance
          consumers, retailers, financial institutions and the economy   transactions.

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