PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Tuesday, August 4, 2020
August 04, 2020
FedACTion Task Force
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Major Developments
Federal Financial Institutions Examination Council Issues Statement on Additional Loan Accommodations Related to COVID-19
August 3, 2020
The Federal Financial Institutions Examination Council on behalf of the federal financial regulatory agencies and state regulatory agencies issued a statement setting forth prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers as initial coronavirus-related loan accommodation periods come to an end and they consider additional accommodations.
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
Treasury Announces Marketable Borrowing Estimates
August 3, 2020
The U.S. Department of the Treasury announced its current estimates of privately-held net marketable borrowing for the July through September 2020 and October through December 2020 quarters. These estimates assume $1 trillion of additional borrowing need in anticipation of additional legislation being passed in response to the COVID-19 outbreak.
Assistant Treasury Secretary Michael Faulkender makes COVID-19-related Statement before the Treasury Borrowing Advisory Committee of the Securities Industry and Financial Markets Association
August 3, 2020
Michael Faulkender, Assistant Secretary of the U.S. Department of the Treasury, issued a statement for the Treasury Borrowing Advisory Committee of the Securities Industry and Financial Markets Association. The statement details COVID-19’s impact on Gross Domestic Product growth, prices, and labor markets and wages, and the U.S. government’s policy response to the pandemic.
Federal Reserve Bank of New York
Blog Post on Strains Endured by the Federal Reserve’s Large-Scale Repo Program
August 3, 2020
The Federal Reserve Bank of New York’s Liberty Street Economics blog released a blog post on the Federal Reserve’s large-scale repo program, which faced liquidity strains in March amid broader financial market volatility related to the COVID-19 pandemic and uncertainty regarding the path of policy. The strains were particularly severe in the term repo market, in which borrowing and lending arrangements are for longer than one business day. The blog post addresses the causes of the liquidity disruptions that arose in the repo market as well as the Federal Reserve’s actions to address those disruptions.
Conference of State Bank Supervisors
Blog Post on the Shape of Things to Come: A Reverse-Radical Recovery?
August 3, 2020
Thomas F. Siems, Ph.D., Senior Economist and Director of Research at the Conference of State Bank Supervisors, released a blog post discussing the shape of the economic recovery following the COVID-19 pandemic-inflicted economic lockdown recession. The blog post examines the curvilinear forms of past recessions and recoveries and then considers a possible path forward.