PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Thursday, May 13, 2021
May 13, 2021
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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)
- Acting Director: Dave Uejio (January 20, 2020)
- Confirmation hearing held on March 2, 2021
- Committee approval March 10, 2021
- Toomey Opening Statement During Chopra, Gensler Nomination Hearing (March 2, 2021)
Securities and Exchange Commission – Gary Gensler (effective April 17, 2021)
- Alex Oh Resigns from SEC; Melissa Hodgman Named Acting Director of Enforcement (April 28, 2021)
- Jessica Wachter Named SEC Chief Economist and Director of the Division of Economic and Risk Analysis (May 3, 2021)
Small Business Administration – Isabel Guzman (effective March 16, 2021)
Commodity Futures Trade Commission
Financial Crimes Enforcement Network
- FinCEN Announces Acting Director and New Deputy Director (April 2, 2021)
- Statement from Treasury Deputy Secretary Adeyemo on Leadership Announcement (April 2, 2021)
National Credit Union Administration – Todd M. Harper
Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)
- Statement by Senate Committee on Banking, Housing, and Urban Affairs Chair Sherrod Brown at Nomination Hearing for Adrianne Todman to be Deputy Secretary (May 11, 2021)
- Statement by Senate Committee on Banking, Housing, and Urban Affairs Ranking Member Pat Toomey at Nomination Hearing for Adrianne Todman to be Deputy Secretary (May 11, 2021)
Department of Education – Dr. Miguel Cardona (effective March 2, 2011)
- U.S. Department of Education Announces Richard Cordray as Chief Operating Officer of Federal Student Aid (May 3, 2021)
- Statement from Secretary Miguel Cardona on the Confirmation of Cindy Marten as Deputy Secretary of the U.S. Department of Education (May 11, 2021)
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. Senate
Committee on Banking, Housing, and Urban Affairs
Senators Brown and Toomey Reach Bipartisan Agreement on Amendment to China Competition Bill
May 12, 2021
U.S. Senate Committee on Banking, Housing and Urban Affairs Chairman Sherrod Brown (D-OH) and Ranking Member Pat Toomey (R-PA) announced an agreement on bipartisan legislation called the “Meeting the China Challenge Act of 2021.” The Brown-Toomey amendment addresses critical concerns about China in the national security and financial services arena, including urging intensified use of existing sanctions authorities against Chinese violators on Hong Kong, human rights, cyber espionage, illicit trade with North Korea, fentanyl production and distribution, and other issues. The legislation also provides for broad new mandatory sanctions on Chinese actors engaged in cyberattacks against the U.S., or in the theft of intellectual property from U.S. firms.
Federal Agencies
U.S. Department of the Treasury
Nearly 1 Million Additional Economic Impact Payments Disbursed under the American Rescue Plan
May 12, 2021
The U.S. Department of the Treasury, the Internal Revenue Service and the Bureau of the Fiscal Service announced they are disbursing nearly one million payments in the ninth batch of Economic Impact Payments from the American Rescue Plan.
Federal Reserve Board
Speech: U.S. Economic Outlook and Monetary Policy
May 12, 2021
Richard H. Clarida, Vice Chair at the Board of Governors of the Federal Reserve System, gave a speech at the “NABE International Symposium: A Vision of the Economy Post COVID,” titled “U.S. Economic Outlook and Monetary Policy.”
Federal Reserve Bank of New York
Staff Report: Specialization in Banking
May 12, 2021
The Federal Reserve Bank of New York released a staff report titled “Specialization in Banking.”
Staff Report: Complexity and Riskiness of Banking Organizations: Evidence from the International Banking Research Network
May 12, 2021
The Federal Reserve Bank of New York released a staff report titled “Complexity and Riskiness of Banking Organizations: Evidence from the International Banking Research Network.”
Credit Card Balances See Second Largest Quarterly Decline in Series’ History, Driven by Paydowns among Borrowers and Constrained Consumption Opportunities
May 12, 2021
The Federal Reserve Bank of New York’s Center for Microeconomic Data issued its Quarterly Report on Household Debt and Credit. The report shows that total household debt increased by $85 billion (0.6%) to $14.64 trillion in the first quarter of 2021, led by an increase in Mortgage balances—the largest component of household debt. According to the report, credit card balances declined by $49 billion—the second largest quarterly decline in the history of the series (which dates back to 1999). Credit card balances are $157 billion lower than they had been at the end of 2019, consistent with both paydowns among borrowers and constrained consumption opportunities.
Federal Reserve Bank of Boston
Remarks: Central Bank Perspectives on Central Bank Digital Currencies
May 12, 2021
Eric S. Rosengren, President and Chief Executive Officer of the Federal Reserve Bank of Boston delivered remarks at Harvard Law School’s Program on International Financial Systems, as part of the panel discussion titled “Central Bank Perspectives on Central Bank Digital Currencies.”
Conference of State Bank Supervisors
Statement on Senate Passage of the CRA Joint Resolution to Strike down OCC True Lender Rule
May 12, 2021
John W. Ryan, President and Chief Executive Officer of the Conference of State Bank Supervisors, delivered a statement on the Senate’s passage of the Congressional Review Act joint resolution to strike down the Office of the Comptroller of the Currency’s true lender rule.
U.S. Securities and Exchange Commission
Staff Statement on Funds Registered Under the Investment Company Act Investing in the Bitcoin Futures Market
May 11, 2021
The Division of Investment Management Staff of the U.S. Securities and Exchange Commission released a statement regarding funds registered under the Investment Company Act investing in the Bitcoin futures market.
Federal Deposit Insurance Corporation
Remarks: The Dodd-Frank Act Post Covid-19 and the Future of Financial Regulation
May 11, 2021
Jelena McWilliams, Chairman of the Federal Deposit Insurance Corporation, gave remarks at the Federalist Society Conference: “The Dodd-Frank Act Post COVID-19 and the Future of Financial Regulation.”
FINRA
FINRA Shares Practices Firms Use to Protect Customers from Online Account Takeover Attempts
May 12, 2021
The Financial Institution Regulatory Authority (FINRA) issued a regulatory notice related to practices firms use to protect customers from online account takeover attempts.
National Credit Union Administration
NCUA and CDFI Fund to Cohost Webinar on Small-Dollar Loan Program
May 12, 2021
The National Credit Union Association and Department of the Treasury’s Community Development Financial Institution Fund (CDFI Fund) announced that they are co-hosting a webinar on May 27, 2021 at 2:00 p.m. Eastern on the CDFI Fund’s Small-Dollar Loan Program.
NCUA Board Member Rodney E. Hood Remarks at National Association of Federally Insured Credit Unions CEOs and Senior Executives Conference
May 12, 2021
National Credit Union Administration Board member Rodney E. Hood gave remarks at the National Association of Federally Insured Credit Unions CEOs and Senior Executives Conference.
Small Business Administration
Administrator Guzman Announces Latest Application Data Results for the Restaurant Revitalization Fund
May 12, 2021
Administrator Isabella Casillas Guzman, head of the U.S. Small Business Administration, announced the latest application data results for the $28.6 billion Restaurant Revitalization Fund (RRF), passed as part of the American Rescue Plan. The RRF has received more than 147,000 applications from women, veterans and socially and economically disadvantaged business owners, requesting a total of $29 billion in relief funds.
SBA OIG Report 21-16: Independent Auditors’ Report on SBA’s Compliance with Payment Integrity
May 12, 2021
The Office of the Inspector General of the U.S. Small Business Administration (SBA) released its Independent Auditors’ Report on SBA’s compliance with the Payment Integrity Information Act of 2019.
International
European Commission
Spring 2021 Economic Forecast
May 12, 2021
The European Commission (EC) issued a release that states that the spring 2021 Economic Forecast projects that the European Union (EU) economy will expand by 4.2% in 2021 and by 4.4% in 2022.
European Banking Authority
EBA Announces High-Level Conference as Part of its 10th Anniversary Celebrations
May 12, 2021
The European Banking Authority (EBA) announced that it will organize a conference on October 26, 2021, during which stakeholders will reflect on financial integration in the EU over the last 10 years in the context of rebuilding the financial regulatory framework globally.
José Manuel Campa Speaks at the 35th Annual General Meeting of ISDA
May 12, 2021
José Manuel Campa, Chairperson of the European Banking Authority, delivered a key note address at the 35th Annual General Meeting of the International Swaps and Derivatives Association (ISDA). Mr. Campa spoke about the measures taken by banks in relation to COVID-19 and their future support for the recovery after the pandemic. He also spoke about the full, timely and consistent implementation of Basel III and the importance of a high quality regulatory framework for a robust European Union banking sector.
EBA Observes Achievements in a Number of Key Areas of the Supervisory Review across the EU, but Also Highlights Items Requiring Continued Attention
May 12, 2021
The European Banking Authority (EBA) published its report on convergence of supervisory practices in 2020.
Bank of England
Speech: Taking Our Second Chance to Make MMFs More Resilient
May 12, 2021
Andrew Bailey, Governor at the Bank of England, gave a speech at the ISDA 35th Annual General Meeting titled “Taking Our Second Chance to Make MMFs (Money Market Funds) More Resilient.”
Financial Conduct Authority
FG21/4: Guidance for insolvency practitioners on how to approach regulated firms
May 12, 2021
The Financial Conduct Authority published non-handbook guidance for insolvency practitioners on how to approach insolvencies of regulated firms.