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Daily Financial Regulation Update -- Friday, October 22, 2021

October 22, 2021

By FedACTion Task Force

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Major Developments

Financial Stability Oversight Council

Report: Financial Stability Oversight Council Identifies Climate Change as an Emerging and Increasing Threat to Financial Stability

October 21, 2021

The Financial Stability Oversight Council (FSOC) released a new report in response to President Biden's Executive Order 14030, Climate-related Financial Risk, and for the first time identified climate change as an emerging and increasing threat to U.S. financial stability.

Consumer Financial Protection Bureau

CFPB Orders Tech Companies to Turn Over Information on their Payment System Plans

October 21, 2021

The Consumer Financial Protection Bureau (CFPB) issued a series of orders to collect information on the business practices of large technology companies operating payments systems in the United States. The information is intended to help the CFPB better understand how these firms use personal payments data and manage data access to users so the CFPB can ensure adequate consumer protection.

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 the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.

Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.

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. House of Representatives

Committee on Small Business

Chairwoman Velázquez Announces November Hearings

October 21, 2021

U.S. House Small Business Committee Chairwoman Nydia M. Velázquez (D-NY) announced several committee hearings throughout November:

  • Wednesday, November 3, 2021 at 10:00 a.m. E.T.: Entrepreneurship in the New Economy
  • Thursday, November 4, 2021 at 10:00 a.m. E.T.: The Community College Pipeline to Small Businesses
  • Tuesday, November 16, 2021 at 10:00 a.m. E.T.: A Discussion with Small Business Administration Administrator Isabella Casillas Guzman
  • Press Release

Federal Agencies

U.S. Department of the Treasury

FATF Works to Strengthen Financial Transparency, Combat Misuse of Virtual Assets

October 21, 2021

The Financial Action Task Force (FATF) concluded its October plenary, the sixth session since the start of the ongoing COVID-19 pandemic. The FATF advanced its core work on virtual assets, beneficial ownership transparency, and illicit finance risks.

Joint Statement: The United States, Austria, France, Italy, Spain, and the United Kingdom on a Compromise on a Transitional Approach to Existing Unilateral Measures During the Interim Period Before Pillar 1 is in Effect

October 21, 2021

The United States, Austria, France, Italy, Spain, and the United Kingdom released a joint statement regarding a compromise on a transitional approach to existing unilateral measures during the interim period before Pillar 1 is in effect.

The United States, Austria, France, Italy, Spain, and the United Kingdom Announce Agreement on the Transition from Existing Digital Services Taxes to New Multilateral Solution Agreed by the OECD-G20 Inclusive Framework

October 21, 2021

On October 8, an historic agreement was reached between 136 countries of the OECD-G20 Inclusive Framework – representing 94% of the world's GDP – on a two Pillar package of reforms to the international tax framework to be implemented in 2023. In support of this agreement, the United States, Austria, France, Italy, Spain, and the United Kingdom have announced the terms of an agreement on the transition from existing digital services taxes to the new multilateral solution.

Federal Reserve Board

Statement by Chair Powell on the FSOC's Report on Climate-Related Financial Risk

October 21, 2021

Federal Reserve Board Chair Jerome Powell issued a statement on the Financial Stability Oversight Council's Climate Change Report.

Federal Reserve Board Announces a Broad Set of New Rules That Will Prohibit the Purchase of Individual Securities, Restrict Active Trading, and Increase the Timeliness of Reporting and Public Disclosure by Federal Reserve Policymakers and Senior Staff

October 21, 2021

Following a comprehensive review, the Federal Reserve Board announced a broad set of new rules that will prohibit the purchase of individual securities, restrict active trading and increase the timeliness of reporting and public disclosure by Federal Reserve policymakers and senior staff. As a result of the new policies, senior Federal Reserve officials will be limited to purchasing diversified investment vehicles, like mutual funds.

Federal Reserve Board Announces It Will Begin Its Survey of Finance Companies This Month as Part of the Board's Continuing Effort to Improve Its Understanding of Credit Availability to Households and Businesses in the United States

October 21, 2021

The Federal Reserve Board announced that it will begin its Survey of Finance Companies this month as part of the Board's continuing effort to improve its understanding of credit availability to households and businesses in the United States.

Federal Reserve Bank of New York

Report: The Real Consequences of Macroprudential FX Regulations

October 21, 2021

The Federal Reserve Bank of New York published a staff report titled, "The Real Consequences of Macroprudential FX Regulations."

Blog Post: Severe Supply Disruptions Are Impeding Business Activity in the Region

October 21, 2021

The Federal Reserve Bank of New York published a Liberty Street Economics blog titled, "Severe Supply Disruptions Are Impeding Business Activity in the Region."

Office of the Comptroller of the Currency

Statement by the Acting Comptroller on FSOC Climate Change Report

October 21, 2021

Acting Comptroller of the Currency Michael J. Hsu issued a statement at the meeting of the Financial Stability Oversight Council (FSOC) with respect to the FSOC Climate Change Report.

Securities and Exchange Commission

Remarks: SEC Chair Gensler Prepared Remarks at DC Fintech Week

October 21, 2021

Securities and Exchange Commission Chair Gary Gensler gave prepared remarks at DC Fintech Week.

National Credit Union Administration

NCUA Board Approves Final Rules on CUSOs and CAMELS Rating System, Briefed on Cybersecurity

October 21, 2021

The National Credit Union Administration (NCUA) Board approved two items at its ninth open meeting of 2021: 1) A final rule that adds the sensitivity to market risk or "S" component to the existing CAMEL rating system and redefines the liquidity risk or "L" component; and 2) a final rule that expands the list of permissible activities and services credit union service organizations, or CUSOs, are allowed to engage in.

U.S. Department of Labor

Report: Unemployment Insurance Weekly Claims Report Update

October 21, 2021

In the week ending October 16, the advance figure for seasonally adjusted initial claims was 290,000, a decrease of 6,000 from the previous week's revised level. This is the lowest level for initial claims since March 14, 2020 when it was 256,000. The previous week's level was revised up by 3,000 from 293,000 to 296,000. The 4-week moving average was 319,750, a decrease of 15,250 from the previous week's revised average. This is the lowest level for this average since March 14, 2020 when it was 225,500. The previous week's average was revised up by 750 from 334,250 to 335,000.

U.S. Department of Education

Statement: Federal Student Aid Chief Operating Officer Rich Cordray on Loan Servicer Contracts

October 21, 2021

U.S. Department of Education Federal Student Aid Chief Operating Officer Rich Cordray released a statement regarding loan servicer contracts.

International

Bank of England

The Climate Financial Risk Forum Publishes Its Second Set of Guides to Help the Financial Industry Effectively Manage Climate-Related Financial Risks

October 21, 2021

A second round of guides to help financial firms manage climate-related financial risk has been published by the Climate Financial Risk Forum.

Bank of England Prudential Regulation Authority

Policy Statement: PS24/21 | CP10/21 - Implementation of Basel Standards: Non-performing Loan Securitizations

October 21, 2021

The Prudential Regulation Authority published Policy Statement PS24/21, which provides feedback to responses to Consultation Paper CP10/21 "Implementation of Basel Standards: Non-performing Loan Securitizations."

Administration Changes

Appointments/Confirmation Hearings

U.S. Department of the Treasury - Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau - Rohit Chopra (effective October 12, 2021)

Securities and Exchange Commission - Gary Gensler (effective April 17, 2021)

Small Business Administration - Isabella Casillas Guzman (effective March 16, 2021)

Commodity Futures Trade Commission

Financial Crimes Enforcement Network

National Credit Union Administration - Todd M. Harper

U.S. Department of Housing and Urban Development - Marcia Fudge (effective March 10, 2021)

Federal Housing Finance Agency

U.S. Department of Education - Dr. Miguel Cardona (effective March 2, 2021)