PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Friday, October 9, 2020
October 09, 2020
FedACTion Task Force
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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.
Federal Agencies
Department of the Treasury
SBA and Treasury update FAQs on Paycheck Protection Program
October 7, 2020
The U.S. Small Business Administration and the U.S. Department of the Treasury published Question 52 to the Frequently Asked Questions for the Paycheck Protection Program (PPP), which asks whether lenders and borrowers are required to modify promissory notes used for PPP loans to reflect the extended deferral periods introduced under the Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act). In response, the SBA confirmed that lenders are not required to make a formal modification to the promissory note as the extension of the deferral period under the Flexibility Act automatically applies to all PPP loans. Accordingly, lenders are required to give immediate effect to the statutory extension and should notify borrowers of the change to the deferral period.
Federal Reserve Bank of Boston
Boston Fed President Rosengren Delivers Speech on Implications for Recovery from the Pandemic
October 8, 2020
Federal Reserve Bank of Boston President Eric Rosengren delivered a speech at Marquette University regarding the implications for recovery of the COVID-19 pandemic. Rosengren discussed how the state of the economy as it encounters a shock or downturn – and the health of the financial system – can play important roles in recessionary dynamics, and how the recessionary burden is spread across the economy. Increased risk-taking in the low-interest-rate environment that preceded the current economic downturn will likely make the recovery from the pandemic more difficult.
Federal Deposit Insurance Corporation
Chairman McWilliams Delivers Remarks at Single Resolution Board’s Annual Conference
October 8, 2020
Federal Deposit Insurance Corporation (FDIC) Chairman Jelena McWilliams delivered remarks at the Single Resolution Board’s Annual Conference: “Resolution Readiness: Adapting to our Uncertain World.” Chairman McWilliams discussed lessons learned during the COVID-19 pandemic, including the importance of using capital and liquidity buffers wisely. Because banks had built up strong capital and liquidity reserves during the past decade, they have been able to help support the real economy through the ongoing COVID-19 crisis.
Department of Labor
DOL Releases Unemployment Insurance Weekly Claims Report Update
October 8, 2020
The U.S. Department of Labor released its Unemployment Insurance Weekly Claims Report Update, which found that in the week ending October 3, the advance figure for seasonally adjusted initial claims was 840,000, a decrease of 9,000 from the previous week’s revised level. The previous week’s level was revised up by 12,000 from 837,000 to 849,000. The 4-week moving average was 857,000, a decrease of 13,250 from the previous week’s revised average. The previous week’s average was revised up by 3,000 from 867,250 to 870,250.
International
Bank of England
Bank of England Publishes Record of FPC Meeting on September 30
October 8, 2020
The Bank of England published the Financial Policy Summary and Record (Record) of the meeting of the Financial Policy Committee (FPC) on September 30, 2020. Members of the FPC discussed the risks faced by the UK financial system and assessed the resilience of the system to those risks.
UK Financial Conduct Authority
Executive Director Davidson Delivers Speech on Mortgages and the Coronavirus - Enabling Positive Consumer Outcomes
October 8, 2020
Jonathan Davidson, Executive Director of Supervision (Retail and Authorizations) of the Financial Conduct Authority (FCA) delivered a speech at the FCA’s Mortgage Forbearance Webinars. Davidson discussed the need to prioritize support for borrowers that are most at risk of harm and the FCA’s desire that firms ensure that more hands-on support is available for those that need it.