Larry Pruss

U.S. Government Accountability Office GAO's analysis of investment returns indicates crypto assets have uniquely high volatility—a measure of their riskiness to participants—and their returns can come with considerable risk. GAO's simulation found a high allocation (20 percent) to bitcoin, the crypto asset with the longest price history, can lead to higher volatility than smaller allocations (1 and 5 percent). Further, GAO's interviews with researchers and firms that develop crypto asset investment options indicate there is no standard approach for projecting the potential future returns of crypto assets. 401(k) Plans: Industry Data Show Low Participant Use of Crypto Assets Although DOL's Data Limitations Persist GAO-25-106161 Published: Nov 19, 2024. Publicly Released: Dec 04, 2024. #Bitcoin #Finance #401K #DigitalTransformation #Cryptocurrency #GAO #DOL #GovernmentAccountabilityOffice #Innovation #CryptoRevolution #DigitalGold #FutureOfFinance #DecentralizedEconomy #BlockchainTechnology #CryptoAdoption #GlobalFinance #BTC #FinTech #CryptoCommunity #FinancialFreedom #BitcoinEconomy #DigitalAssets #PeerToPeer #CryptoWorld #DecentralizedFinance #GlobalCurrency #CryptoFuture #financialmarket #commodities #capitalmarket #foriegnexchange

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There seems to be an increasing main stream media push to re-characterize traditional small "c" conservatives (fiscal responsibility, smaller government, individual responsibility) as either "hard-right", "far-right" or "extreme-right" which subtlety imbed perjorative negative impressions. My sense is this is only possible because the traditional "centre" has moved to the left under most western governments. There is nothing hard or extreme about excersing fiscal and financial discipline, taking personal responsibility and supporting free speech such that important questions can be debated freely and openly without fear of recrimination, cancellation or jail. Respect and civility should be the goal with the full acceptance that their will likely be divergent views on many topics. Common sense needs to prevail over disinformation and misinformed narratives. Budgets do not balance themselves. It is important to think hard about monetary policy impacts. If we want the best outcomes, we should support a meritocracy framework. Toxic forever chemicals and increasingly pervasive microplastics are a problem. Global biodiversity is under threat and we are approaching several environmental tipping points. We need to embrace a massive scale up of nuclear power to help decarbonize and most importantly provide safe, clean, scalable and affordable energy for the coming exponential increase in power consumption that AI adoption will bring. There is an environmental footprint with all activities. The goal should be to minimize it where possible as the economy is a wholly dependent subset of our natural ecosystem, not visa versa.

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CFPB Implements Open Banking Rules Today, the Consumer Financial Protection Bureau (CFPB) made a significant move to reshape the financial services landscape, finalizing a rule that gives consumers more control over their personal financial data. https://lnkd.in/gRW793p7 The rule mandates that financial institutions, credit card issuers, and other providers unlock personal financial information at the consumer's request, allowing individuals to transfer their data freely to other financial companies. By fueling competition, this landmark rule is expected to lower costs for loans and empower consumers to move away from companies that offer subpar services. By giving consumers the power to freely transfer financial data, it disrupts entrenched market concentration, giving people greater choice in financial services. The most immediate benefit will be the ability for consumers to switch banks or credit providers with ease, which creates an incentive for companies to offer more competitive products. The ease of comparison shopping for loans, payment services, or savings rates is expected to drive down costs across the board. This ruling also has profound implications for financial businesses, from fintechs to traditional banks. As competition ramps up, companies will need to innovate and enhance their customer service to retain business. Financial institutions can no longer rely on data silos to keep consumers locked in. Instead, they must offer better services and improve customer experiences to stay competitive. From an operational standpoint, businesses will need to invest in secure, efficient data-sharing technologies and ensure compliance with the rule’s strict privacy provisions. For consumers, this rule is a game-changer. It empowers individuals not only to seek out better rates but also to protect their data from misuse. The end of "screen scraping" and the move toward more secure data-sharing practices will ensure that sensitive information is not misused. In the long term, this new regulatory framework will likely spur innovation in financial products, as companies seek to differentiate themselves in an increasingly competitive market. Whether through lower loan rates, higher interest on deposits, or new payment solutions like “pay-by-bank,” consumers will benefit from a broader array of choices. The rule’s phased implementation allows larger institutions until April 2026 to comply, while smaller financial firms have until 2030, giving the industry time to adjust without sacrificing consumer protections. Havas Edge is keeping a close eye on the evolving landscape. We recognize the significant opportunities it presents for brands to better align their financial messaging and products with consumer needs. #CFPB #OpenBanking #ConsumerRights #FinancialInnovation

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The Consumer Financial Protection Bureau has released the first part of its 1033 rule - How it will recognize standards setting organizations. I'll have more to say after I've digested this portion of the rule. For now, from the CFPB's press release: To be recognized by the CFPB, the standard setters must apply to the CFPB and display the following attributes: ◼ Openness: The CFPB will not recognize any standard-setting organization that is rigged in favor of any set of industry players. The process must be open to all interested parties, including public interest groups, app developers, and a broad range of financial firms with a stake in open banking. ◼ Transparency: Procedures must be transparent to participants and publicly available. ◼ Balanced decision-making: The decision-making power to set standards must be balanced across all interested parties, including consumer and other public interest groups. There must also be meaningful representation for large and small commercial entities. No single special interest can dominate the decision-making process. ◼ Consensus: Standards development must proceed by consensus, though not necessarily unanimity. Comments and objections must be considered using fair and impartial processes. ◼ Due process and appeals: The standard-setting body must use documented and publicly available policies and procedures, provide adequate notice of meetings, sufficient time to review drafts and prepare views and objections, access to views and objections of other participants, and a fair and impartial process for resolving conflicting views. An appeals process is also available for the impartial handling of procedural appeals. https://lnkd.in/evJJ9KpC

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My discussion via ⁦‪@NPR‬⁩ ⁦‪@NPRinskeep‬⁩ on economic policy proposals during the current presidential campaign: Booth major presidential campaigns indicate a desire to expand the child tax credit. https://lnkd.in/eE5aGCnk

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As we look ahead to 2024, the intersection of politics, policy, and economics takes center stage. With the income Trump presidency poised to drive significant shifts in fiscal and foreign policy, the first 100 days of the next administration will set the tone for years to come. In our latest Economic Outlook, we examine: The potential policy priorities of a Trump Administration, including regulatory reforms, tax policies, and trade strategies. Key cabinet nominations and their implications for domestic and international priorities. Economic growth prospects, including our updated Q4 GDP growth estimate of 2.3% and what to expect in 2025. Critical geopolitical challenges, such as the ongoing conflicts in Ukraine and the Middle East, and how U.S. leadership changes may shape the global landscape. Our report dives deep into how these developments might influence markets, businesses, and consumers. Read the full report to stay informed and look for regular updates so that you are prepared for what lies ahead! #EconomicOutlook #PolicyAnalysis #GlobalEconomy #2024Election https://lnkd.in/e7fr_y-K

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Insightful report by Nate Scherer and Isaac Schick highlighting how the FHLBanks’ have evolved as economic realities and congressional mandates have changed over the past 90+ years, yet have held true to their mission of providing liquidity to members in support of housing and community development.    "It is unrealistic to expect the FHLB to maintain the same structure over nearly a century" and "perform new public services like providing profits to the Affordable Housing" Program (AHP). "Since 1990, all 11 FHLBanks have contributed over $7.6 billion ... supporting over one million households. The FHLB did not have to contribute funds towards housing in this manner when it began, thus its role in promoting homeownership has expanded, not declined."    The report also recognizes that the system voluntarily increased its commitment to support affordable housing and community development above the 10 percent statutory requirement to 15 percent during 2023, which has meant hundreds of millions of dollars in additional investments in affordable housing and community development in 2023 and 2024. 

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Why National Bank of #Georgia is Ditching Dollars for Gold? ISET Policy Institutes new policy brief suggests the following: ⭕ Although NBG's recent acquisition of 7 tons of high-quality monetary gold valued at $500 million well aligns with the economic rationale, recent domestic developments in Georgia raise questions about alternative motives. ⭕ International experience suggests that gold is perceived as a secure and desirable reserve asset in situations where countries face financial #sanctions or the risk of asset freezes

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The CFPB has finalized a rule to supervise the largest nonbank companies offering digital funds transfer and payment wallet apps. The rule will help the CFPB to ensure that these companies – specifically those handling more than 50 million transactions per year – follow federal law just like large banks, credit unions, and other financial institutions already supervised by the CFPB. #payments #digitalwallets #banking #regulation

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New review by Zachary Shore of Andrew J. Bacevich's _On Shedding an Obsolete Past: Bidding Farewell to the American Century_. https://lnkd.in/dkEcDV67 "If you ever worry that America is being run by a bumbling mass of venal nincompoops, or fret that American society is slouching toward self-destruction, Andrew Bacevich’s collected essays will provide ample fodder for your fears. _On Shedding an Obsolete Past: Bidding Farewell to the American Century_ is not a work of scholarship, but rather a compilation of learned opinions. Bacevich peppers his pieces with a sprinkle of sarcasm and a dash of venomous invective, pulling no punches, barbs, or jibes as he excoriates the United States’ institutions, most notably its military, media, and political elites. Unfortunately, he has no shortage of material, and not just regarding President Donald Trump, a 'bozo of such monumental proportions as to tax the abilities of our most talented satirists' (129). Bacevich himself might qualify for membership in that club of humorists. When discussing the efforts to impeach the former president, he quips that replacing Trump with Vice President Mike Pence is 'the equivalent of exchanging Groucho for Harpo' (304). But Trump is just the lowest hanging fruit. The author reaches much deeper. Bacevich’s primary concern is with the eight-decade-old paradigm of America as the 'indispensable nation,' a notion he views as dangerously obsolete. As he sees it, a self-reproducing cadre of foreign policy gurus, sometimes called 'the Blob,' has convinced itself that US military dominance and overseas meddling are requirements of a stable world order, one that largely benefits the US. Although this notion does nothing to aid average Americans, it preserves the status of the establishment."

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Discover the power of Community Development Financial Institutions (CDFIs): We’re sharing the essentials: - What are CDFIs and how do they operate? - What does the current CDFI market look like? - Where do CDFIs source their capital? - How are CDFIs paving the way for a more equitable future? - How can CDFIs be included in client portfolios? Dive in and see how CDFIs are making a difference. Find out more: https://lnkd.in/enRY9ECw #ImpactInvesting #CommunityDevelopment #CDFI #SocialFinance #EconomicEmpowerment

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We're proud to be a #CDFI, and join the other CDFI's and Responsible Lenders across the country in making real change! Community Development Finance Institutions (CDFIs) have turned ripples of finance into waves of change for individuals, businesses and social enterprises across the UK.  They provided opportunity and built resilience for disadvantaged communities and those excluded from mainstream finance. In 2023, lending from CDFI's hit a record high of £287 million - and CDFIs now operate at 31 times the scale they did in 2003, when the sector lent £9.2 million. This growth reflects how CDFI's fill widening needs seen for the right finance at the right time.  Here’s what CDFIs achieved in 2023: - Supported 4,546 start-ups and SMEs with £102m of loans.  - 12,135 jobs were created or safeguarded.  - 99% of businesses had been declined by another lender.  - 371 social enterprises were supported with £119m of loans.   - Households saved £29m in interest repayments compared to high-cost lenders.   - CDFIs lent £66m to 85,208 individuals.  - CDFIs identified a total of £601m of unclaimed benefits for 143,050 customers. Read more about the impact of CDFIs’, plus lots of customer stories in: https://lnkd.in/eWSFydQ2 #RipplesToWaves #ResponsibleFinance #CDFIs Responsible Finance 👏

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Last week, the Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency and U.S. Department of Justice finalized new policies for reviewing bank mergers. That left the Federal Reserve Board as the odd agency out.  Once a top concern for Michael Barr, the Fed’s chief regulator, merger policy has taken a backseat to capital reform and other priorities at the central bank. But that doesn’t mean the Fed will be unmoved by the actions of its regulatory counterparts — at least not necessarily.  To see where the Fed stands on bank mergers, look no further than the proposed combination of Capital One and Discover Financial Services. For details on what to look for and more context about how we got here, see my latest for American Banker. https://lnkd.in/eAr8n_Mt

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I'm more sanguine than most on the SBTi's mega word dump today. While I understand and share much of the exasperation, I actually think it's not that bad, for four reasons: (i) it was no surprise, (ii) the risks they highlight are largely mitigated (including through ratings), (iii) there are some pretty decent ideas in there, hiding among all the waffle, and (iv) SBTi matters less and less. 🙀 (i) It's no surprise they didn't unveil a sweeping policy shift today, not only because the all-powerful CTO said last week that they wouldn't, but because the SBTi is not a decisive organisation. The exception that proves the rule came when the SBTi board unexpectedly announced, back in April, a possible shift towards a substantively new position on carbon credits - the organisation had a seizure and almost imploded entirely. Much safer to set policy on glacial timeframes. 🕰 (ii) Their analysis - by fetishising peer-reviewed literature, which by definition is a time capsule due to the publication process - is out of date, as many of the risks they set out are now tractable. The discussion paper sets out a long list of integrity risks to the use of carbon credits, all of which are valid, but they fail to mention is that the data and tools to mitigate these risks largely already exist. In many cases Ratings specifically are a solution. Everyone knows not all credits are equal and we have plenty of tools available to help discern quality and direct investment toward the most effective solutions. 💚 (iii) There is some good stuff in there. I'm thinking here of discussion paper scenarios 3, 4 and especially 5 (imagine if 33% of all scope 3 emissions were addressed through high quality carbon credits, that would be huge). These ideas are sound, striking the balance between prioritising reductions while enabling more investment. Yet, without the full seal of approval from the SBTi, they’re destined to remain plans instead of action. This is unfortunate, to say the least, at a time when we need every company reducing as much as possible and increasing their investment into real climate action. 📉 (iv) The SBTi matters less and less. We've started to see governments, including the US and UK, hint at clear policy divergences with SBTi, and with the ISO now developing a Net Zero Standard, it feels like peak SBTi is behind us. At least as the monopoly voice on corporate decarbonisation. I think they've done loads of great work and hope they continue to grow, but with a narrower focus on the target-setting frameworks, leaving the language around claims to others. So in sum, I think SBTi will get there, in the end. But it will probably be too late for them to retain the relevance and reverence they currently enjoy but are increasingly squandering ⏳ .

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For fintech customers caught in the Synapse collapse, the ball is unfortunately in the bankruptcy court, meaning resolution is likely to be maddeningly slow. But it's hard to ignore the tepid regulatory response to the collapse of Synapse. Fintechs are NOT banks and do not take deposits -- and thus are not insured. Regulators need to do something about this problem. https://lnkd.in/gAJ67tY5  

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No - thats not how a legal interpretation of 1033 reads - it reads that you have to give the information to the member/consumer. Doesn't the member already own the data in a credit union? Opening up APIs to every and all fintechs is not just going to lead to mergers... its going to lead to the largest data breaches in HISTORY. We have to think differently - and to do that we can look to the past.... Just like Amazon and Google weren't built on Web1 Bulletin Board Systems... the financial institutions of the future wont be built on Web2 API technology. In the words of Steve Jobs. Think Differently. Thats all it takes.

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According to PitchBook's new Q2 2024 Retail Fintech Report, Venture Capital investment in retail fintech has bounced back, with a total deal value of $4.5 billion, marking a 270.8% increase from Q1. This surge is attributed to substantial fundraising rounds for lending, credit, and banking startups. In the article below, we look at some of the other highlights from their analysis. #PitchBook #Fintech #VentureCapital

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