left-caret
Insights

ph fedaction financial regulatory updates homepage

Daily Financial Regulation Update -- Wednesday, August 12, 2020

August 12, 2020

By FedACTion Task Force

Subscribe to

PH Client Alerts

to read more from our Coronavirus series.

Major Developments

Federal Reserve Board Reduces Pricing for its Municipal Liquidity Facility

August 11, 2020

The Board of Governors of the Federal Reserve System announced reduced pricing for its Municipal Liquidity Facility. The revised pricing reduces the interest rate spread on tax-exempt notes for each credit rating category by 50 basis points and reduces the amount by which the interest rate for taxable notes is adjusted relative to tax-exempt notes.

New York Fed Issues Revised Frequently Asked Questions for the Municipal Liquidity Facility

August 11, 2020

The Federal Reserve Bank of New York issued revised FAQs for the Municipal Liquidity Facility (MLF) reflecting the reduced pricing for the MLF as well as some clarifying program updates.

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 Banking, Housing, and Urban Affairs

Crapo, McHenry Call on Treasury and Federal Reserve to Fully Utilize COVID-19 Relief Funds

August 10, 2020

Senate Committee on Banking, Housing, and Urban Affairs Chairman Mike Crapo (R-Idaho) and Ranking Member of the House Committee on Financial Services, Patrick McHenry (R-North Carolina), urged U.S. Department of the Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell to utilize the remaining funds in the Exchange Stabilization Fund (ESF) to its fullest extent to support business and employees in need of liquidity.

Federal Agencies

Conference of State Bank Supervisors

CSBS Economist Provides Retrospective on How to Spot Recessions in Real-Time

August 11, 2020

The Conference of State Bank Supervisors released a blog post by its Senior Economist and Director of Research, Dr. Thomas F. Siems, providing a self-described “unconventional” retrospective on how to spot recessions in real-time. Siem describes using a variety of high-frequency indicators to mark the beginning of the current U.S. recession as March 12, 2020, the day after the World Health Organization declared COVID-19 a pandemic.

International

European Commission

Eight Macro-Financial Assistance Programs Agreed to Support Enlargement and Neighborhood Partners

August 11, 2020

The European Commission, on behalf of the EU, has agreed to a Memoranda of Understanding on macro-financial assistance (MFA) programs with eight partners. The agreements are part of the €3 billion MFA package to help them limit the economic fallout of the COVID-19 pandemic.

European Banking Authority

EBA Publishes Guidance on Impact of CRR Adjustments in Response to the COVID‐19 Pandemic on Supervisory Reporting and Disclosure

August 11, 2020

The European Banking Authority published a revised version of its Implementing Technical Standards on supervisory reporting v3.0 and two sets of Guidelines on disclosures and supervisory reporting requirements. These products provide clarifications on the application of certain adjustments on institutions’ disclosures and supervisory reporting introduced in the Capital Requirements Regulation in response to the COVID-19 pandemic.