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Daily Financial Regulation Update -- Saturday, July 10, 2021

July 10, 2021

By FedACTion Task Force

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Click here to read more from our Coronavirus series.


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 Financial Services

Waters Secures Commitment from President Biden to Include Housing in Reconciliation

July 8, 2021

Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, released a statement after securing a commitment from President Biden that funding for housing will be included in a prospective infrastructure bill that would be passed via the reconciliation process.

Federal Agencies

Department of the Treasury

Treasury Secretary Yellen Delivers Remarks on Climate Change at G20 Symposium

July 9, 2021

Janet L. Yellen, Secretary of the U.S. Department of the Treasury, delivered remarks in which she stressed the need for G20 countries to take steps to address climate change, at the G20 Finance Ministers and Central Bank Governors Meeting’s High Level Symposium on International Tax.

Treasury Deputy Secretary Adeyemo Hosts Roundtable Discussion with Emergency Rental Assistance Program Grantees

July 9, 2021

Wally Adeyemo, Deputy Secretary of the U.S. Department of the Treasury, hosted a roundtable discussion with leading Emergency Rental Assistance program grantees who provide vital assistance to households across the country that are unable to pay rent or utilities.

Federal Reserve Bank of New York

FRBNY Staff Report: Reserves Were Not So Ample After All

July 9, 2021

The Federal Reserve Bank of New York released a report entitled, “Reserves Were Not So Ample After All.” The report’s authors show that repo rates rose above efficient-market levels when the total reserve balances held at the Federal Reserve by the largest repo-active bank holding companies declined, and that repo rate spikes are strongly associated with delayed intraday payments of reserves to these large bank holding companies.

FRBNY Releases Monthly U.S. Economy Snapshot

July 9, 2021

The Federal Reserve Bank of New York released its U.S. Economy in a Snapshot presentation (Snapshot) for July 2021. According to the Snapshot, among other findings, output in 2021 Q1 rose to near its year-ago level; personal income fell in May 2021 because of a decline in government transfer payments; housing starts were down in May 2021 relative to the March 2021 peak, but in line with pre-pandemic levels; and payroll employment growth increased in June 2021, while the unemployment rate moved up slightly.

Commercial Paper Funding Facility Makes Final Distribution of Assets

July 8, 2021

The final distributions of assets of the dedicated funding vehicle established in connection with the Commercial Paper Funding Facility took place on June 29 and July 7, 2021, returning the full equity investment of $10 billion from the U.S. Department of the Treasury (Treasury) (plus amounts earned through the investment of that capital), and sending residual profits of $49.1 million to the Treasury and Federal Reserve Bank of New York at the 90-10 ratio set out in the vehicle’s limited liability company agreement.


Bank of England

Banking Sector Regulatory Capital Statistics in the UK Banking Sector

July 9, 2021

The Bank of England (Bank) issued its Banking Sector Regulatory Capital Statistical Release for 2021 Q1. The quarterly statistical release shows levels of capital and risk-weighted assets for the UK banking sector and includes breakdowns of the movements in different tiers of capital and risk exposure types, and overall capital ratios.

Bank Releases Staff Working Paper on Machine Learning and Big Data’s Impact on Credit Markets

July 9, 2021

The Bank of England released Staff Working Paper No. 930, entitled “The Impact of Machine Learning and Big Data on Credit Marks.” The authors provide a model in which traditional banks compete with fintechs that screen borrowers using machine learning technology and show that the impact of the adoption of machine learning technology on credit markets depends on the characteristics of the market, including borrower mix, cost of innovation, the intensity of competition and precision of the innovative technology.

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 (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

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

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