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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Saturday, January 22, 2022

January 22, 2022

FedACTion Task Force

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Congress

U.S. Senate

Committee on Banking, Housing, and Urban Affairs

Statements on Federal Reserve's CBDC Report

January 20, 2022

Senator Sherrod Brown (D-OH), Chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs (Banking Committee), and Senator Pat Toomey (R-PA), Ranking Member of the Banking Committee, issued statements regarding the Federal Reserve's report on central bank digital currencies.

Federal Agencies

U.S. Department of the Treasury

Statement: Remarks by Secretary of the Treasury Janet L. Yellen at the 2022 Virtual Davos Agenda Hosted by the World Economic Forum

January 21, 2022

Secretary of the Treasury Janet L. Yellen gave prepared remarks at the 2022 Virtual Davos Agenda hosted by the World Economic Forum.

Federal Deposit Insurance Corporation

FDIC Approves Final Rule Regarding Deposit Insurance Simplification for Trusts and Mortgage Servicing Accounts

January 21, 2022

The Federal Deposit Insurance Corporation (FDIC) approved a final rule to simplify aspects of the FDIC's deposit insurance coverage rules.

Securities and Exchange Commission

Statement: Departing Statement of Commissioner Elad L. Roisman

January 21, 2022

Securities and Exchange Commission (SEC) Commissioner Elad L. Roisman gave a statement on his departure from the SEC.

Statement: Joint Statement on Departure of Commissioner of Elad L. Roisman

January 21, 2022

Securities and Exchange Commission (SEC) Chair Gary Gensler and SEC Commissioners Hester M. Peirce, Allison Herren Lee, and Caroline A. Crenshaw gave a joint statement on the departure of Commissioner Elad L. Roisman.

The Divisions of Corporation Finance and Investment Management Ask that Paper "Courtesy Copies" No Longer Be Provided Unless Requested by the Staff

January 21, 2022

The Divisions of Corporation Finance and Investment Management requested that paper "courtesy" copies no longer be sent as a matter of course and should only be furnished at the request of the staff.

Financial Crimes Enforcement Network

FinCEN Announces Inflation Adjustments to BSA Civil Monetary Penalties

January 21, 2022

The Financial Crimes Enforcement Network (FinCEN) issued a final rule to reflect annual inflation adjustments to its civil monetary penalties as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990.

Federal Financial Institutions Examination Council

Statement: Federal Financial Institutions Examination Council Issues Statement of Principles on Examination Information Requests

January 21, 2022

The Federal Financial Institutions Examination Council (FFIEC) issued a statement announcing best practices for requesting examination information from supervised entities, and a common authentication solution for secure access to the FFIEC members' supervision systems.

FINRA

Notice: FINRA Reminds Member Firms of Obligation to Execute Marketable Customer Orders Fully and Promptly

January 21, 2022

In light of the increasingly automated markets for National Market System stocks, the Financial Industry Regulatory Authority (FINRA) issued a Notice to remind member firms of their obligation to execute marketable customer orders fully and promptly. FINRA is also reminding firms of their obligation to ensure that their supervisory systems are reasonably designed to achieve compliance with this obligation.

U.S. Small Business Administration

SBA Announces New Pilot Program to Bolster Cybersecurity Infrastructure of Emerging Small Businesses


January 21, 2022

The U.S. Small Business Administration (SBA) announced $3 million in new funding for state governments to help emerging small businesses across America develop their cybersecurity infrastructure – a priority outlined in the President's Bipartisan Infrastructure Law. As part of the Cybersecurity for Small Business Pilot Program, through the Office of Entrepreneurial Development, state governments are eligible to compete for grants that will help deliver cybersecurity assistance to nascent and start-up business owners. Applications will be accepted from January 26, 2022, through March 3, 2022.

Readout: Administrator Guzman, SBA Leaders Participate in the 90th Winter Meeting of the U.S. Conference of Mayors

January 21, 2022

U.S. Small Business Administration (SBA) Administrator Isabella Casillas Guzman delivered remarks to more than 200 mayors and business leaders at the Mayors and Business Leaders Plenary Breakfast. In her remarks, Administrator Guzman highlighted how the SBA and local governments can work together to provide small businesses the assistance they need to survive and thrive amid the COVID-19 pandemic.

U.S. Department of Housing and Urban Development/Federal Housing Administration

Freddie Mac: Housing to Remain Stable as Rates Rise and Prices Cool

January 21, 2022

Freddie Mac published a new Quarterly Forecast, which estimates that rising rates will lead to moderation in homebuyer demand, slowing house price growth somewhat.

Ginnie Mae

Blog Post: An Update on Blockchain at Ginnie Mae

January 21, 2022

Ginnie Mae published a blog post titled, "An Update on Blockchain at Ginnie Mae."

Ginnie Mae Streamlines Requirements for Servicers Moving Homeowners from Forbearance to Permanent Loan Modification

January 21, 2022

Ginnie Mae announced in All Participants Memorandum 22-01 that it is streamlining its documentation requirements for servicers participating in the Federal Housing Administration Advanced Loan Modification program. This step will eliminate the requirement for recordation and title insurance

U.S. Department of Labor

US Secretary of Labor Announces Coordinated Effort to Improve Job Quality Nationwide

January 21, 2022

U.S. Secretary of Labor Marty Walsh announced an initiative aimed at improving job quality throughout the country. The "Good Jobs" initiative, led by the Department of Labor, will provide criticalinformationto workers, employers and government entities as they seek to improve job quality, andcreateaccess to good union jobs– free from discrimination and harassment– forallworkers and job seekers.

Bank Policy Institute

Statement: BPI Statement on Federal Reserve's Central Bank Digital Currency Report

January 21, 2022

In response to the Federal Reserve's discussion paper on central bank digital currency to solicit public feedback, Paige Pidano Paridon, Senior Vice President and Associate General Counsel of the Bank Policy Institute, issued a statement.

International

European Banking Authority

EBA Consults on Draft Guidelines on Remuneration and Gender Pay Gap Benchmarking Exercise for Banks and Investment Firms

January 21, 2022

The European Banking Authority (EBA) launched a consultation to update its Guidelines on the remuneration benchmarking exercise under the Capital Requirements Directive (CRD), which was originally published in 2012 and updated in 2014. The review integrates additional requirements introduced by CRD V regarding the application of derogations to the requirement to pay out a part of variable remuneration in instruments and under deferral arrangements and the benchmarking of the gender pay gap. In addition, the review also includes guidance on how to harmonize the benchmarking of approvals granted by shareholders to use higher ratios than 100% between the variable and fixed remuneration. A separate and specific set of Guidelines is provided for investment firms under Investment Firms Directive. The consultation runs until March 21, 2022.

EBA Consults on Updates to its Guidelines on Data Collection Exercises Regarding High Earners

January 21, 2022

The European Banking Authority (EBA) launched a consultation on updates to its Guidelines on the data collection exercise on high earners, which were originally published in 2012 and revised in 2014. The review of the data collection exercises reflect the amended remuneration framework laid down in the Capital Requirements Directive (CRDV), including the introduction of derogations to pay out a part of the variable remuneration in instruments and under deferral arrangements. In addition, the need to update these Guidelines stems from the specific remuneration regime that has been introduced for investment firms and is laid down in the Investment Firms Directive (IFD) and Investment Firms Regulation (IFR). The consultation runs until March 21, 2022.

Bank of England

Speech: On Returning Inflation Back to Target – Speech by Catherine L. Mann

January 21, 2022

Catherine L. Mann, External Member of the Monetary Policy Committee of the Bank of England gave a speech titled, "On Returning Inflation Back to Target."

Administration Changes

Vacancies

Federal Reserve Board

  • Vice Chair for Supervision – Sarah Bloom Raskin nominated January 14, 2022
  • Governor – Lisa Cook nominated January 14, 2022
  • Governor – Phillip Jefferson, nominated January 14, 2022

Federal Deposit Insurance Corporation

  • Chair – Martin Gruenberg will become Acting Chair as of February 1, 2022
  • Vice Chairman

Office of the Comptroller of the Currency

  • Comptroller – Vacant (Michael Hsu serves as Acting Comptroller)

Commodity Futures Commission

  • Three (3) Commissioner Vacancies

Appointments/Confirmation Hearings

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

Federal Reserve Board

Federal Reserve Bank of New York

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 – Rostin Behnam (effective December 17, 2021)

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 – Sandra L. Thompson

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

PH Client Alerts

Click here to read more from our Coronavirus series.

Legislation/Legislative Updates

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.

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