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Daily Financial Regulation Update - Saturday, June 20, 2020

June 20, 2020

By FedACTion Task Force

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Congress

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

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

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

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

Rubio, Cruz, Scott Introduce Bill to Expand PPP Eligibility to Chambers of Commerce, DMOs

June 18, 2020

U.S. Senators Marco Rubio (R-FL), Chairman of the Senate Committee on Small Business and Entrepreneurship, Ted Cruz (R-TX) and Tim Scott (R-SC) introduced a bill to expand Paycheck Protection Program (PPP) eligibility to local chambers of commerce, which provide resources to small businesses, and Destination Marketing Organizations (DMOs), which market and promote tourist destinations and attractions.

U.S. House of Representatives

Committee on Financial Services

Waters Announces Updates to Committee’s June Schedule

June 18, 2020

Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services (Committee), announced several updates to the Committee’s June 2020 schedule:

  • the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets hearing entitled “Capital Markets and Emergency Lending in the COVID-19 Era,” scheduled for June 25, 2020 at 12:00 PM Eastern, will convene in a “hybrid” format, and

  • the Subcommittee on Housing, Community Development, and Insurance virtual hearing entitled “Insuring Against a Pandemic: Challenges and Solutions for Policyholders and Insurers,” has been postponed due to changes in the House calendar and will convene at a date to be determined.

Federal Agencies

U.S. Small Business Association

SBA Introduces Tool to Connect Small Businesses with Lenders Participating in PPP

June 19, 2020

Jovita Carranza, Administrator of the U.S. Small Business Administration (SBA), announced the launch of a dedicated online tool, Lender Match, for small businesses and non-profits to be matched with Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies, Farm Credit System lenders, Microlenders and traditional smaller asset size lenders participating in the Paycheck Protection Program (PPP).

Board of Governors of the Federal Reserve System

Quarles Delivers Speech on Stress Testing at WFH Meeting

June 19, 2020

Randal K. Quarles, Vice Chair for Supervision of the Federal Reserve, delivered a speech entitled “The Adaptability of Stress Testing” due to COVID-19 before the group Women in Housing and Finance in Washington, D.C.

Federal Reserve Bank of Boston

Rosengren Delivers Speech on the Main Street Loan Program to Greater Providence Chamber of Commerce

June 19, 2020

Eric Rosengren, President of the Federal Reserve Bank of Boston, delivered a speech entitled “An Update on the Economy and the Main Street Lending Program” to the Greater Providence Chamber of Commerce.

Securities and Exchange Commission

SEC Extends Relief for Virtual Meetings of Fund Boards

June 19, 2020

The U.S. Securities and Exchange Commission (SEC) announced it is extending conditional relief from the in-person voting requirements for fund boards that it originally provided in March, 2020 as a result of COVID-19.  The SEC’s relief will now extend at least through December 31, 2020.  The extension is designed to provide flexibility to boards of registered funds and business development companies (funds) that may continue to face challenges meeting in person because of the COVID-19 pandemic.

Commodity Futures Trading Commission

National Credit Union Association

NCUA Announces Phased Approach to On-site Operations

June 20, 2020

In a letter to Federally Insured Credit Unions (Credit Unions), Rodney E. Hood, Chairman of the National Credit Union Administration (NCUA), advised the Credit Unions that the NCUA had developed a multi-phase transition plan for the resumption of its on-site operations and is now preparing to implement that plan.

International

Bank of England

BoE Provides Update on US Dollar Liquidity-Providing Operations

June 19, 2020

The Bank of England (BoE) announced that, as of July 1, 2020, “[i]n view of the improvements in US dollar funding conditions and the low demand at recent 7-day maturity US dollar liquidity-providing operations due to COVID-19, the (BoE), the Bank of Japan, the European Central Bank and the Swiss National Bank, in consultation with the Federal Reserve, have jointly decided to reduce the frequency of their 7-day operations from daily to three times per week.”

BoE Provides Update on CTRF

June 19, 2020

The Bank of England (BoE) announced that, in light of continued improvements in funding market conditions and recent usage patterns due to COVID-19, the BoE will discontinue the one-month Contingent Term Repo Facility (CTRF) operations at the end of June, 2020. The final CTRF operation is scheduled to take place on June 26, 2020. In its announcement, the BoE noted that “CTRF operations can be rapidly reintroduced at any stage if justified by market conditions.”

UK Financial Conduct Authority

FCA Announces Proposals to Further Support Consumer Credit Customers

June 19, 2020

The UK Financial Conduct Authority (FCA) announced proposals designed to provide continued support for users of certain consumer credit products, who are facing a financial impact because of the COVID-19 pandemic.