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Advice for Businesses in Dealing with the Expanding Coronavirus Events

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Daily Financial Regulation Update -- Tuesday, November 24, 2020

By
FedACTion Task Force
On Nov 24, 2020

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Click here to read more from our Coronavirus series.

Congress

Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.

Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.

Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.

U.S. House of Representatives

Committee on Financial Services

Chairmwoman Waters Announces December Hearing Schedule

November 23, 2020

Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services (Committee), announced that the full Committee will convene for a hybrid hearing titled “Oversight of the Treasury Department’s and the Federal Reserve’s Pandemic Response” on December 2, 2020 at 10:00 a.m. Eastern.

Committee on Small Business

Chairwoman Velázquez Calls on Trump Administration to Reverse Stance on Deductibility for PPP Borrowers

November 23, 2020

Representative Nydia M. Velázquez (D-NY), Chairwoman of the House Small Business Committee, wrote to the Small Business Administration, Department of the Treasury and the Internal Revenue Service asking the agencies to reverse their stance on the deductibility of expenses payed for with funds obtained via Paycheck Protection Program loans.

Federal Agencies

Federal Reserve Board, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency

Agencies Provide Temporary Relief to Community Banking Organizations

November 20, 2020

The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency announced an Interim Final Rule (IFR) that provides temporary relief for certain community banking organizations and entities that were below $10 billion in total assets as of December 31, 2019 related to certain regulations and reporting requirements as a result, in large part, of their growth in size from the coronavirus response. Such regulatory relief applies to certain institution’s capital adequacy, as well as limits applicable on regulations addressing Debit Card Interchange and Management Interlocks, caused by participating in federal coronavirus response programs and other lending that caused unexpected increases in their asset sizes, which are generally expected to be temporary. Under the requirements covered by the IFR, banking organizations that have crossed a relevant threshold due to the temporary increase generally will have until 2022 to either reduce their size, or to prepare for new regulatory and reporting standards.

Federal Reserve Bank of New York

Monetizing Privacy with Central Bank Digital Currencies

November 23, 2020

The Federal Reserve Bank of New York’s Liberty Street Economics blog has released a post titled “Monetizing Privacy with Central Bank Digital Currencies.” According to the post, evidence suggests that digital payment adoptions have accelerated as a result of the COVID-19 pandemic. While digitalization of payment activity improves data utilization by firms, it can also infringe upon a consumer’s right to privacy. This authors explain how payment data acquired by firms impacts market structure and consumer welfare. They also look at the implications of introducing a central bank digital currency that offers consumers a low-cost, privacy-preserving digital cash or other electronic means of payment.