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Daily Financial Regulation Update -- Saturday, February 13, 2020

February 13, 2021

By FedACTion Task Force

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Administration Changes

Appointments/Confirmation Hearings

Department of the Treasury – Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (Nominee)

Securities and Exchange Commission – Gary Gensler (Nominee)

Small Business Administration – Isabel Guzman (Nominee)

Commodity Futures Trade Commission

National Credit Union Administration – Todd M. Harper

Department of Housing and Urban Development – Marcia Fudge (Nominee)

Department of Education – Miguel Cardona (Nominee)

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 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

Senators Warren, Brown, and Van Hollen Urge SEC to Strengthen and Enforce Insider Trading Rule

February 12, 2021

U.S. Senators Elizabeth Warren (D-MA), Sherrod Brown (D-OH), and Chris Van Hollen (D-MD), members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, sent a letter to the Securities and Exchange Commission (SEC) urging the agency to review and consider reforming policies regarding 10b5-1 plans, which are designed to prevent insider trading.

Senator Toomey, GOP Banking Committee Members Urge SEC to Block NASDAQ’s Proposed Diversity Rule

February 12, 2021

U.S. Senate Banking Committee (Committee) Ranking Member Pat Toomey (R-PA) and all Republican members of the Committee sent a letter to U.S. Securities and Exchange Commission (SEC) Acting Chair Allison Herren Lee, urging the SEC to reject a proposed rule from NASDAQ that requires publicly traded corporations to adopt new racial and gender diversity standards for boards of directors.

Federal Agencies

Department of the Treasury

Treasury Secretary Yellen Participates in G7 Finance Ministers and Central Bank Governors Meeting

February 12, 2021

Janet L. Yellen, Secretary of the U.S. Department of the Treasury (Treasury), participated in a virtual meeting with G7 finance ministers and central bank governors. According to a statement issued by a Treasury Spokesperson, Yellen emphasized the importance of providing further fiscal support to promote a robust and lasting recovery and expressed strong support for G7 efforts to tackle climate change.

Federal Reserve Board

Federal Reserve Board Releases Hypothetical Scenarios for its 2021 Bank Stress Tests

February 12, 2021

The Board of Governors of the Federal Reserve System (Board) released the hypothetical scenarios for its 2021 bank stress tests. Last year, the Board found that large banks were generally well capitalized under a range of hypothetical events, but due to continuing economic uncertainty, placed restrictions on bank payouts to preserve the strength of the banking sector.

Federal Reserve Bank of New York

FRBNY Issues New FAQ

February 12, 2021

The Federal Reserve Bank of New York issued an FAQ for the Corporate Credit Facilities - Corporate Bond and ETF Investment Management Services Prequalification process.

FRBNY Releases Monthly U.S. Economy Snapshot

February 12, 2021

The Federal Reserve Bank of New York released its U.S. Economy in a Snapshot presentation (Snapshot) for February 2021. According to the Snapshot, consumer spending fell again in December 2020; real expenditures on goods fell while spending on services was roughly unchanged; overall spending was down 3% over the year, with purchase of goods up 6% and those for services down 7%; and lower spending and higher income pushed up personal saving.

FRBNY Updates Labor Market for Recent College Graduates Page

February 12, 2021

The Federal Reserve Bank of New York updated its Labor Market for Recent College Graduates page, which now provides new 2020 fourth quarter data on unemployment, underemployment, and underemployed job types, as well as new annual data on wages and labor market outcomes by major.

Office of the Comptroller of the Currency

OCC Releases Dodd-Frank Act Stress Test Scenarios for 2021

February 12, 2021

The Office of the Comptroller of the Currency (OCC) released economic and financial market scenarios for use in the upcoming stress tests for certain national banks and federal savings association subject to stress testing.

International

Bank of England

Bank Issues Staff Working Paper on Banks, Shadow Banks, and Business Cycles

February 12, 2021

The Bank of England issued Staff Working Paper No. 907, titled “Banks, Shadow Banks, and Business Cycles” (Paper). In the Paper, the authors observe that credit spreads on household and business loans move in lockstep and spike in every recession, and propose a theory as to why banks tighten their lending standards following a drop in market sentiment.