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Daily Financial Regulation Update -- Wednesday, August 26, 2020

August 26, 2020

By FedACTion Task Force

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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.

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.