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Daily Financial Regulation Update -- Friday, December 11, 2020

December 11, 2020

By Paul Hastings Professional

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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.

U.S. Senate

Committee on Small Business and Entrepreneurship

Small Business in Crisis: The 2020 Paycheck Protection Program and its Future

December 10, 2020

U.S. Senator Marco Rubio (R-FL), Chairman of the Senate Committee on Small Business and Entrepreneurship, convened a hearing titled “Small Business in Crisis: The 2020 Paycheck Protection Program and its Future.”

Federal Agencies

Conference of State Bank Supervisors

How Concerned Are Community Banks in These 11 Areas?

December 10, 2020

The Conference of State Bank Supervisors (CSBS) has posted a blog post noting that it is collecting data from community banks to populate the fourth quarter Community Bank Sentiment Index. The index gauges how community banks are feeling about the economy based on questions dealing with business conditions, monetary policy, profitability, regulatory burden and expansion. This quarter, the CSBS is asking community banks to describe their level of concern about 11 critical areas, including COVID-19 and economic lockdowns.

CSBS Letter: Borrower Protections under Section 4022 of the CARES Act

December 9, 2020

The Conference of State Bank Supervisors has written a letter to the U.S. Department of Housing and Urban Development, Federal Housing Finance Agency, Federal Housing Administration, U.S. Department of Agriculture and U.S. Department of Veteran Affairs regarding borrower protections under Section 4022 of the CARES Act. The letter states that state regulators request that prior to year end the Federal housing agencies come to consensus on the appropriate covered period for Section 4022 of the CARES Act and publicly communicate that consensus to avoid any further confusion.

Federal Housing Finance Agency

FHFA Further Extends COVID-Related Loan Flexibilities

December 10, 2020

The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will extend several loan origination flexibilities until January 31, 2021. The changes are to ensure continued support for borrowers during the COVID-19 emergency. The flexibilities were set to expire on December 31, 2020.

U.S. Department of Labor

Labor Department Issues Release on Unemployment Insurance Weekly Claims

December 10, 2020

The U.S. Department of Labor issues a release regarding weekly unemployment insurance claims. The release state that, in the week ending December 5, the advance figure for seasonally adjusted initial claims was 853,000, an increase of 137,000 from the previous week’s revised level; the previous week’s level was revised up by 4,000 from 712,000 to 716,000; the four-week moving average was 776,000, an increase of 35,500 from the previous week’s revised average; and the previous week’s average was revised up by 1,000 from 739,500 to 740,500.

International

Bank of England Prudential Regulation Authority

PRA Statement on Capital Distributions by Large UK Banks

December 10, 2020

The Bank of England Prudential Regulation Authority (PRA) has released a statement on capital distributions by large UK banks. According to the statement, at the end of March 2020, the PRA welcomed the decisions of the boards of the large UK banks to suspend dividends and buybacks on ordinary shares until the end of 2020. At the PRA’s request they also cancelled payments of any outstanding 2019 dividends and restricted cash bonus payments to senior staff. The exceptional request reflected the unprecedented levels of economic uncertainty facing the global economy at that time due to the onset of the COVID-19 pandemic.