US Reg Round-Up: 26/06/2025

Federal Reserve

Federal Reserve Board announces that reputational risk will no longer be a component of examination programs in its supervision of banks

The Federal Reserve Board announced that reputational risk will no longer be a component of its bank examination programs. The Board has initiated a review to remove references to reputation and reputational risk from supervisory materials, such as examination manuals, replacing them with specific financial risk discussions where appropriate. To ensure consistent implementation, the Board will train examiners and collaborate with other federal bank regulatory agencies as needed. This change does not affect the expectation for banks to maintain robust risk management practices for safety, soundness, and legal compliance, nor does it restrict banks from incorporating reputational risk in their internal risk management

Federal Reserve Board and Federal Open Market Committee release economic projections from the June 17-18 FOMC meeting

On June 18, 2025, the Federal Reserve Board and Federal Open Market Committee (FOMC) released the Summary of Economic Projections (SEP) from their June 17-18 meeting, outlining forecasts for real GDP growth, unemployment, inflation, and the federal funds rate for 2025–2027 and the longer run. The median projections indicate slower GDP growth at 1.4% for 2025 (down from 1.7%), a slightly higher unemployment rate at 4.5%, and elevated core PCE inflation at 3.1% (up from 2.8%) due to trade tariffs and energy price pressures, with inflation expected to approach the 2% target by 2027. The federal funds rate is projected to remain at 3.9% in 2025, implying one 25-basis-point cut from the current 4.25%–4.5% range, with two cuts anticipated by year-end.

The projections reflect a cautious monetary policy stance amid heightened uncertainties from trade policy shifts, such as proposed U.S. tariffs, and geopolitical tensions impacting energy prices. The FOMC’s outlook suggests a hawkish approach, prioritizing inflation control over immediate rate reductions, with potential stagflation risks highlighted by lower growth and higher inflation forecasts. Markets anticipate at least one rate cut by September, but ongoing risks could alter this trajectory, impacting financial institutions and economic stakeholders.

Link: Projections

Securities and Exchange Commission

SEC Announces Agenda and Panelists for Roundtable on Executive Compensation Disclosure Requirements

The Securities and Exchange Commission (SEC) announced the agenda and panelists for its June 26, 2025, roundtable on executive compensation disclosure requirements, held at SEC headquarters in Washington, D.C., from 1:00 p.m. to 5:35 p.m. ET. The event, open to the public with a live webcast on SEC.gov and a recording available later, requires registration for in-person attendance due to limited capacity and security checks. The roundtable aims to evaluate the effectiveness of current disclosure rules under Item 402 of Regulation S-K, focusing on their complexity, materiality to investors, and alignment with policy objectives, including the 2006 amendments and Dodd-Frank Act mandates. Public comments are invited via SEC’s online form or email (File Number 4-855).

The agenda includes opening remarks by Chairman Paul Atkins and Commissioners Hester Peirce, Caroline Crenshaw, and Mark Uyeda, followed by three panels. Panel 1 (1:30–2:45 p.m.) will explore how public companies set executive compensation, the influencing factors, and its role in investor decisions, moderated by Keir Gumbs (Edward Jones) with panelists from PNC, Norges Bank, and others. Panels 2 (2:55–4:10 p.m.) and 3 (4:20–5:35 p.m.), moderated by James Cotton (United Airlines) and Ning Chiu (Davis Polk & Wardwell), respectively, will discuss the evolution of disclosure rules, their challenges, investor-relevant information, and future reforms, featuring experts from Compensia, BlackRock, and ExxonMobil, among others. The roundtable seeks to inform potential updates to enhance transparency and reduce compliance burdens while ensuring material disclosures for investors