Rodge Cohen, S&C’s Senior Chair, joined the Banking with Interest podcast to discuss a range of issues the banking industry faces in 2023, including heightened regulatory scrutiny of both bank mergers and partnerships between banks and fintechs. He also addressed the Federal Reserve’s ongoing capital review, the modernization of the Community Reinvestment Act and the need for legislation to regulate the cryptocurrency industry.
Rodge indicated that the biggest hurdle for banks will be preparing for and reacting to a potential recession, including the impact it may have on earnings. “At the end of the day, if there are higher loan defaults, that affects the banking industry, but they’re well-placed to deal with it,” Rodge said.
Regarding cryptocurrency regulation, Rodge emphasized the desirability of legislation to develop a new legal framework. “Cryptocurrency and other crypto assets do not readily fit into any of the existing legal schemes,” he noted. “[T]here’s not a comprehensive regime [for cryptocurrency], so legislation is the best […] way to go.”
Listen to “Rodgin Cohen on Crypto, Capital and M&A Challenges.”