These actions include issuing executive orders creating the Special Presidential Envoy for Climate establishing the White House Office of Domestic Climate Policy to coordinate domestic and foreign policy-making and oversee the implementation of such policies forming the National Climate Task Force directing Treasury Secretary Janet Yellen to utilize the Treasury Department’s Financial Stability Oversight Council to assess the risk climate change poses to the US financial system instructing the Directors of the Office of Management and Budget and National Economic Council, with Secretary Yellen, to develop recommendations for the National Climate Task Force to integrate climate-related financial risk into federal financial management and financial reporting (particularly as applied to federal lending programs) and, instructing the Director of the OMB to assess, plan for, and reduce long-term fiscal exposure to climate-related financial risk. ![]() ![]() These announcements come just three months after former FDIC Chairman Jelena McWilliams-an appointee of President Trump-declined to sign off on the Financial Stability Oversight Council’s (“FSOC”) Report on Climate-Related Financial Risk, 15 voicing her concern about the reliability of the report’s conclusions because “FSOC has not had an adequate opportunity to conduct sufficient analysis, fully consider broader macro consequences, and thoroughly evaluate the impact of its recommendations.” 16 Acting Chairman Gruenberg’s priorities are consistent with other actions by the Biden administration to take a more aggressive approach to mitigate climate-related financial threats. 13 The OCC stated in its request that the principles will support large banks’ climate change efforts, noting that the “anks are likely to be affected by both the physical risks and transition risks associated with climate change.” 14 11 Additionally, in December 2021, the Office of the Comptroller of the Currency (the “OCC”) issued a formal Request for Information on its draft “Principles for Climate-Related Financial Risk Management for Large Banks.” 12 The OCC’s proposed principles, which would apply to banks with over $100 billion in total consolidated assets, are designed to support the identification and management of climate-related financial risks. Gruenberg of the Federal Deposit Insurance Corporation (“FDIC”) released the FDIC’s priorities for 2022, which introduced the agency’s focus on “ddressing the financial risks that climate change poses to banking organizations and the financial system.” 10 In its press release, the FDIC announced its intent to seek public comment on guidance to assist banks in navigating climate change risk, establish a working group on climate-related financial risks, and join the international Network of Central Banks and Supervisors for Greening the Financial System. Raskin’s nomination comes at a time when government regulators are making climate-related regulations a priority. They do not choose winners and losers.” 7 Instead, she emphasized that the policymaking of the Federal Reserve requires a collaborative process that assesses risk. Raskin acknowledged that “it is not the role of the Fed to be directing credit allocation. Senator Pat Toomey, Ranking Member of the Committee, referred to her confirmation as “a referendum on the independence,” and criticized her climate regulation views as having “devastating consequences not just for energy workers, but also for consumers.” 6 Ms. Raskin’s comments were of primary concern for Senate Republicans in her confirmation hearing before the Committee. all US regulators can-and should-be looking at their existing powers and considering how they might be brought to bear on efforts to mitigate climate risk.” 5 Raskin questioned efforts to amend the Federal Reserve’s Main Street Lending Program that would allow companies in the fossil fuel industry to receive loans from the Federal Reserve. Senate, but Republican committee members boycotted the vote, delaying a full Senate vote. 2 The Committee was scheduled to vote on Februto move President Biden’s nominees out of committee to the full U.S. ![]() Department of Treasury and former governor of the Federal Reserve Board, seemed to be more controversial than her fellow nominees given her past statements arguing that the Federal Reserve, and other bank regulators, should take a more active role in promulgating regulations aimed at climate-related financial risks. Raskin, a former deputy secretary of the U.S. Philip Jefferson to be members of the Board of Governors. Senate Committee on Banking, Housing, and Urban Affairs (the “Committee”) considered President Biden’s nomination of Sarah Bloom Raskin for Vice Chair for Supervision and a Member of the Board of Governors of the Federal Reserve System (the “Federal Reserve”), along with the nominations of Dr. Public Services, Infrastructure, Transportation.
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