PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Wednesday, August 12, 2020
August 12, 2020
FedACTion Task Force
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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
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 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.