PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update - Tuesday, May 12, 2020
May 12, 2020
FedACTion Task Force
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Major Developments
NY Fed Announces Start of Certain Secondary Market Corporate Credit Facility Purchases
May 11, 2020
The Federal Reserve Bank of New York announced that the Secondary Market Corporate Credit Facility will begin purchases of exchange-traded funds on May 12, 2020.
Federal Reserve Publishes Updates to the Term Sheet for the MLF
May 11, 2020
The Board of Governors of the Federal Reserve System published updates to the term sheet for the Municipal Liquidity Facility (MLF), to provide pricing and other information. The MLF will offer up to $500 billion in lending to states and municipalities to help manage cash flow stresses caused by the COVID-19 pandemic.
NY Fed Updates MLF FAQs
May 11, 2020
The Federal Reserve Bank of New York updated its Frequently Asked Questions (FAQs), which provide guidance on the MLF.
Congress
Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), 116 HR. 748, 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 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 Housing and Urban Development/Federal Housing Administration
HUD Allocates Third Wave of CARES Act Relief Funding
May 11, 2020
The U.S. Department of Housing and Urban Development (HUD) announced the allocation of a third wave of CARES Act relief funding, totaling $1 billion. The funding will be provided through HUD’s Community Development Block Grant program.
Department of Labor
Department of Labor Issues Guidance Announcing the Availability of STC Grant Funds
May 11, 2020
The U.S. Department of Labor issued guidance announcing the availability of grant funds under Section 2110 of the CARES Act. Section 2110 provides for $100 million to be given to states for the implementation, improved administration, and promotion of short-time compensation (STC) programs that conform to Section 3306(v) of the Federal Unemployment Tax Act. The new guidance encourages eligible states to submit STC grant applications, and provides instructions for the application process. The guidance sets forth a grant application deadline of Dec. 31, 2023.
International
European Commission
Commission Invites Comments on Updated Proposal on Simplified Rules for State Aid Combined with EU support
May 11, 2020
The European Commission (the Commission) invited Member States and other stakeholders to comment on its updated proposal to exempt from prior Commission scrutiny, under European Union (EU) State aid rules, aid granted through national funds for projects supported under certain EU centrally-managed programs. Member States have already been consulted on an earlier draft proposal. According to a statement by Executive Vice-President Margrethe Vestager, who is in charge of competition policy, the purpose of the simplified rules is to improve the interplay between EU funding rules and EU State aid rules.