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Daily Financial Regulation Update -- Thursday, May 13, 2021

May 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 (effective April 17, 2021)

Small Business Administration – Isabel 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, 2011)

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.