PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Friday, July 24, 2020
July 24, 2020
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Major Developments
Federal Reserve Board
Federal Reserve Board Expands Counterparties, Agents for Emergency Lending Facilities; Issues Revised FAQs
July 23, 2020
The Board of Governors of the Federal Reserve System (FRB) broadened the set of firms eligible to transact with the FRB and provide services in the Term Asset-Backed Securities Loan Facility (TALF), Commercial Paper Funding Facility (CPFF), and Secondary Market Corporate Credit Facility (SMCCF). By encouraging a broader range of agents for the TALF, and counterparties for the CPFF and SMCCF, the FRB is seeking to increase participation in the programs.
Federal Reserve Board Publishes Main Street Lending Program’s FAQs for Nonprofit Lending
July 23, 2020
The Board of Governors of the Federal Reserve System released new Frequently Asked Questions (FAQs) specifically addressing the Main Street Lending Program facilities for nonprofit organizations, including the Nonprofit Organization New Loan Facility and the Nonprofit Organization Expanded Loan Facility.
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. Senate
Committee on Small Business and Entrepreneurship
Hearing on Capital Access for Minority Small Businesses
July 23, 2020
The Senate Committee on Small Business and Entrepreneurship (Committee), held a hearing titled, “Capital Access for Minority Small Businesses: COVID-19 Resources for an Equitable and Sustainable Recovery.”
A live-stream of the hearing can be found on the Committee’s website.
U.S. House of Representatives
Committee on Financial Services
Financial Services Committee Holds Hearing on Economic Recovery
July 23, 2020
The House Committee on Financial Services (Committee) held a full Committee hearing entitled, “The Heroes Act: Providing for a Strong Economic Recovery from COVID-19.” Congresswoman Maxine Waters (D-CA), Chairwoman of the Committee, delivered an opening statement at the hearing.
A webcast of the hearing can be found on the Committee’s website.
Federal Agencies
Department of Labor
Labor Department Issues News Release on Unemployment Insurance Weekly Claims
July 23, 2020
The U.S. Department of Labor issued a News Release regarding weekly unemployment insurance claims. The News Release states that, for the week ending July 18, the advance figure for seasonally adjusted initial claims was 1,416,000, an increase of 109,000 from the previous week’s revised level; the previous week's level was revised up by 7,000 from 1,300,000 to 1,307,000; the four-week moving average was 1,360,250, a decrease of 16,500 from the previous week's revised average; and, the previous week’s average was revised up by 1,750, from 1,375,000 to 1,376,750.
International
European Banking Authority
EBA Publishes Guidelines on 2020 Supervisory Review and Evaluation
July 23, 2020
Following the publication of its statement on additional supervisory measures in relation to the COVID-19 pandemic, the European Banking Authority (EBA) published Guidelines setting forth a special procedure for the supervisory review and evaluation process (SREP) for the year 2020. The new Guidelines identify how flexibility and pragmatism can be exercised in relation to the SREP framework, in the context of the COVID-19 pandemic. The SREP is the process by which supervisors regularly assess and measure risks for individual banks, and provide the banks with key objectives to address the identified risks.
Bank of England
Brazier Delivers Speech on Corporate Sector’s Financing Needs
July 23, 2020
Alex Brazier, the Bank of England’s Executive Director for Financial Stability Strategy and Risk, delivered a speech entitled, “Protecting Economic Muscle: Finance and the Covid Crisis”. In his speech, Mr. Brazier discussed the United Kingdom’s corporate sector’s financing needs, analyzed how cash flows could evolve in the coming months, and examined how companies could finance their cash-flow deficit.
Haskel Delivers Speech on Economic Effects of COVID-19
July 23, 2020
Jonathan Haskel, External Member of the Bank of England’s Monetary Policy Committee, delivered a speech entitled, “From Lockdown to Recovery - the Economic Effects of COVID-19”. In his speech, Mr. Haskel discussed some of the initial modelling of the economic impact of COVID-19, and how recent developments in economic modelling can shed light on how the dual fears of infection and unemployment might shape the recovery.