PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Friday, November 6, 2020
November 06, 2020
FedACTion Task Force
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Major Developments
U.S. District Court Rules SBA Must Reveal Names, Addresses and Dollar Amounts for All Paycheck Protection Program and Economic Injury Disaster Loan Recipients
November 5, 2020
The United States District Court for the District of Columbia ordered the U.S. Small Business Administration (SBA) to disclose, by November 19, 2020, the exact loan amounts, names and addresses of all individuals and entities that received funds as part of the Paycheck Protection Program and Economic Injury Disaster Loans program, rejecting the SBA’s arguments that the Freedom of Information Act’s exemptions for confidential and private information supported its withholding of data relating to such loans.
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.
Federal Agencies
Federal Reserve Board
Federal Reserve Issues FOMC Statement
November 5, 2020
The Board of Governors of the Federal Reserve System issued a Federal Open Market Committee Statement addressing the COVID-19 pandemic and maintaining the federal funds rate in a target range of 0 to 1/4 percent.
U.S. Securities and Exchange Commission
Opening Remarks of Chairman Clayton and Commissioner Peirce at a Special Meeting of the SEC’s Asset Management Advisory Committee
November 5, 2020
U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton and Commissioner Hester M. Peirce delivered remarks at the November 5, 2020 meeting of the Asset Management Advisory Committee (AMAC). According to Mr. Clayton, the meeting provides an opportunity for the AMAC to provide particular recommendations for the SEC as it considers how best to apply the lessons and insights gained from COVID-19.
U.S. Department of Labor
Labor Department Issues Release on Unemployment Insurance Weekly Claims
November 5, 2020
The U.S. Department of Labor issued a release regarding weekly unemployment insurance claims. The release states that, in the week ending October 31, the advance figure for seasonally adjusted initial claims was 751,000, a decrease of 7,000 from the previous week’s revised level; the previous week’s level was revised up by 7,000 from 751,000 to 758,000; the four-week moving average was 787,000, a decrease of 4,000 from the previous week’s revised average; and the previous week’s average was revised up by 3,250 from 787,750 to 791,000.
International
European Commission
Autumn 2020 Economic Forecast: Rebound Interrupted as Resurgence of Pandemic Deepens Uncertainty
November 5, 2020
The European Commission released its Autumn 2020 Economic Forecast. According to the forecast, the coronavirus pandemic represents a large shock for the global and EU economies, with severe economic and social consequences. Economic activity in Europe suffered a severe shock in the first half of the year and rebounded strongly in the third quarter as containment measures were gradually lifted. However, the resurgence of the pandemic in recent weeks is resulting in disruptions as national authorities introduce new public health measures to limit its spread.
Bank of England
Bank Rate held at 0.1% and asset purchases increased by £150bn
November 5, 2020
The Bank of England’s Monetary Policy Committee (MPC) voted unanimously to maintain the Bank Rate at 0.1%. The MPC voted unanimously for the Bank of England to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £20 billion. The MPC also voted unanimously for the Bank of England to continue with the existing program of £100 billion of UK government bond purchases, financed by the issuance of central bank reserves, and also for the Bank of England to increase the target stock of purchased UK government bonds by an additional £150 billion, financed by the issuance of central bank reserves, to take the total stock of government bond purchases to £875 billion.
Monthly Decision Maker Panel Data - October 2020
November 5, 2020
The Bank of England released its Monthly Decision Marker Panel data for October 2020. In the survey, businesses estimated that their sales in Q3 2020 were 18% lower than they would otherwise have been because of COVID-19, employment 8% lower and investment 25% lower. The negative impact of COVID-19 on sales is expected to ease from 18% in Q3 2020 to 15% in Q4 2020, 14% in Q1 2021 and 9% in Q2 2021. On average, these expectations are around 2 percentage points lower than in the September 2020 survey.