PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update - Thursday, June 11, 2020
June 11, 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.
U.S. Senate
Committee on Small Business and Entrepreneurship
Rubio Chairs Hearing on the Implementation of Title I of the CARES Act
June 10, 2020
U.S. Senator Marco Rubio (R-FL), Chairman of the U.S. Senate Committee on Small Business and Entrepreneurship, convened a hearing titled, “Implementation of Title I of the CARES Act.”
A stream of the hearing can be found on the committee’s website here.
Cardin, Coons and Shaheen Announce Legislation to Get Capital to Small Businesses Hardest Hit by COVID-19
June 10, 2020
U.S. Senate Committee on Small Business & Entrepreneurship Ranking Member Ben Cardin (D-MD), and Senators Chris Coons (D-DE) and Jeanne Shaheen (D-NH), , announced their intention to introduce the Prioritized Paycheck Protection Program (P4) Act. The bill, if enacted, will authorize new lending under the Paycheck Protection Program (PPP) to small businesses with 100 employees or less, including sole proprietorships and self-employed individuals. Eligible businesses must have already expended an initial PPP loan, or be on pace to exhaust the funding, and must demonstrate a revenue loss of 50 percent or more due to the COVID-19 pandemic.
U.S. House of Representatives
Committee on Small Business
Chairwoman Velázquez and Ranking Member Chabot Lead Bipartisan Letter to SBA on Issues Within COVID-19 Relief EIDL Program
June 9, 2020
House Small Business Committee Chairwoman Nydia M. Velázquez (D-NY) and Ranking Member Steve Chabot (R-OH) led a bipartisan group of Committee members in a letter to the Small Business Administration (SBA) seeking more information regarding issues small business borrowers are facing within the Economic Injury Disaster Loan (EIDL) program.. The letter called on the SBA to improve its management of the program and to provide regular updates to Congress to ensure the program is operating effectively.
Federal Agencies
Federal Reserve Board
Federal Reserve issues FOMC statement
June 10, 2020
The Board of Governors of the Federal Reserve System announced its decision to implement the monetary policy stance announced by the Federal Open Market Committee (the FOMC) in its June 10, 2020 statement. In light of the ongoing effects of the current public health crisis on these developments, the Committee maintained the target range for the federal funds rate at 0 to 1/4 percent and expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.
Federal Reserve Board and Federal Open Market Committee release economic projections from the June 9-10 FOMC meeting
June 10, 2020
The Federal Open Market Committee (FOMC) released a table and charts that summarize the economic projections and the target federal funds rate projections made by FOMC participants for its June 9-10, 2020 meeting.
Federal Reserve Bank of New York
New York Fed Issues Statement Regarding Treasury Securities, Agency Mortgage-Backed Securities, and Agency Commercial Mortgage-Backed Securities Operations
June 10, 2020
The Federal Open Market Committee (FOMC) directed the Open Market Trading Desk at the Federal Reserve Bank of New York to increase the System Open Market Account holdings of Treasury securities, agency mortgage-backed securities, and agency commercial mortgage-backed securities at least at the current pace to sustain the smooth functioning of markets for these securities.
New York Fed Announces Future Subscription and Closing Dates for the Term Asset-Backed Securities Loan Facility
June 10, 2020
The Federal Reserve Bank of New York published future Subscription and Closing Dates for the Term Asset-Backed Securities Loan Facility (TALF). The first Subscription and Closing Dates for the TALF will be June 17, 2020 and June 25, 2020, respectively. The following dates are set for July 6, 2020 and July 15, 2020, with additional dates posted through September.
Conference of State Bank Supervisors
Hagler Writes Blog Post on How Fintech Tools Are Helping Regulators During the Pandemic
June 10, 202
Kevin Hagler, Chairman of the Conference of State Bank Supervisors (CSBS). released a blog post detailing the ways in which investment in technology has helped state financial regulators monitor for safety and soundness and support communities. Such technology includes the State Examination System, a new nationwide technology operated by CSBS that provides state agencies a single technology platform to supervise nonbank financial institutions.Blog Post
Commodity Futures Trading Commission
CFTC Extends No-Action Relief to Market Participants in Response to COVID-19
June 10, 2020
The Commodity Futures Trading Commission (CFTC) announced it has extended through September 30, 2020, certain elements of the no-action relief issued in response to the COVID-19 pandemic that was set to expire on June 30, 2020. On March 17, 2020, the CFTC’s Division of Swap Dealer and Intermediary Oversight and Division of Market Oversight granted targeted, temporary relief to a broad spectrum of market participants to support orderly trading and liquidity as they implemented social distancing measures.
International
Bank of England
Bank of England Examines the Role Margin Played During the COVID-19 Shock
June 10, 2020
As part of its “Bank Overground” web series, the Bank of England published an article addressing the importance of margin during the COVID-19 shock. According to the article, recent market turbulence highlighted the importance of margin as a safeguard against counterparty credit risk. The article also argues that prudent margining is not a trade-off with liquidity risk, and liquidity strategies should account for potential margin calls.
UK Financial Conduct Authority
Woolard Discusses Emergency Regulation and Learning from the Coronavirus Crisis
June 10, 2020
In his first “Inside FCA Podcast” interview, Interim Chief Executive Chris Woolard discussed how the Financial Conduct Authority (FCA) has rapidly reprioritized work in light of the coronavirus pandemic. Woolard also explained specific areas of intervention, including mortgages and business interruption insurance, and addressed priorities in the FCA’s business plan.