PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Wednesday, August 26, 2020
August 26, 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.
Federal Agencies
Federal Deposit Insurance Corporation
FDIC-Insured Institutions Reported Lower Profitability but Strong Liquidity and Higher Capital Levels in Second Quarter of 2020 During COVID-19 Pandemic
August 25, 2020
The Federal Deposit Insurance Corporation (FDIC) reported that commercial banks and savings institutions saw a decrease in net income of 70% from a year ago, while liquidity and capital levels remained strong to meet loan demand and absorb any losses in the future. For the 5,066 commercial banks and savings institutions insured by the FDIC, aggregate net income totaled $18.8 billion in second quarter 2020, down $43.7 billion (70.0%) from a year ago. The decline in net income is a continuation of uncertain economic conditions, which drove an increase in provision expenses. Financial results for second quarter 2020 are included in the FDIC’s latest Quarterly Banking Profile.
Federal Housing Finance Agency
U.S. House Prices Up 5.4% from Last Year; Prices Rise 0.8% in Second Quarter despite COVID-19
August 25, 2020
The Federal Housing Finance Agency (FHFA) issued a news release that, according to its House Price Index, U.S. house prices rose 5.4% from the second quarter of 2019 to the second quarter of 2020. House prices were up 0.8% in the second quarter of 2019. FHFA’s seasonally adjusted monthly index for June 2020 was up 0.9% from May 2020.
International
Bank of England
Bank of England Releases Findings on how COVID-19 Affected the Finances of UK Households
August 25, 2020
The Bank of England released findings on how COVID-19 has affected the finances of UK households. Its latest survey of British households pointed to large declines in household income and spending due to COVID-19. The results of such survey showed that many households cut spending, even if their income did not fall.