PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Thursday, May 27, 2021

May 27, 2021

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. Senate

Committee on Banking, Housing, and Urban Affairs

Committee Holds Annual Wall Street Oversight Hearing

May 26, 2021

The U.S. Senate Committee on Banking, Housing, and Urban Affairs (Committee) held a hearing entitled, “Annual Oversight of Wall Street Firms.” Senator Sherrod Brown (D-OH), Chairman of the Committee, and Senator Pat Toomey (R-PA), Ranking Member of the Committee, both delivered opening statements at the hearing.

Federal Agencies

Department of the Treasury

Yellen Delivers Remarks on Financial Inequalities

May 26, 2021

Janet L. Yellen, Secretary of the U.S. Department of the Treasury, delivered remarks to the Financial Literacy and Education Commission. Secretary Yellen’s remarks addressed the United States’ economy’s longstanding failure to work fairly for people of color.

Federal Reserve Board

Quarles Delivers Remarks on Federal Reserve’s Insurance Regulation and Supervision Priorities

May 26, 2021

Randal K. Quarles, Vice Chair for Supervision of the Board of Governors of the Federal Reserve System, delivered remarks, via prerecorded video, at the National Association of Insurance Commissioners International Insurance Forum. Vice Chair Quarles’ remarks highlighted the Federal Reserve System’s priorities on insurance regulation and supervision, both domestically and internationally.

Federal Reserve Bank of New York

Report and Blog: The Overnight Drift in U.S. Equity Returns

May 26, 2021

The Federal Reserve Bank of New York released a Staff Report titled “The Overnight Drift”, and an accompanying Liberty Street Economics blog post titled “The Overnight Drift in U.S. Equity Returns,” which document and examine large positive returns to holding U.S. equity futures overnight during the opening hours of European markets.

Conference of State Bank Supervisors

Blog: An Early Look at Q1 2021 Bank Performance

May 26, 2021

The Conference of State Bank Supervisors released a blog post entitled “An Early Look at Q1 2021 Bank Performance,” in which it examined the performance of both state chartered and national banks based on early indications from the first quarter 2021 call report filings.

Federal Deposit Insurance Corporation

FDIC Releases Quarterly Banking Profile

May 26, 2021

The Federal Deposit Insurance Corporation (FDIC) released its latest Quarterly Banking profile, including financial results for the first quarter of 2021. According to the profile, reports from the commercial banks and savings institutions insured by the FDIC reflect aggregate net income of $76.8 billion in the first quarter of 2021, an increase of $58.3 billion (315.3%) from a year ago. Aggregate negative provision expense, reflecting improvements in the economy and asset quality, drove the increase in quarterly net income.

Financial Crimes Enforcement Network

FinCEN to Host Innovation Hours Program Workshop Focusing on Privacy Enhancing Technologies

May 26, 2021

The Financial Crimes Enforcement Network (FinCEN) will host a special virtual FinCEN Innovation Hours Program on September 9, 2021, focusing on the important role of privacy-preserving principles in developing technical solutions that enhance financial services innovation.

U.S. Small Business Administration

SBA Proposes Increased Size Standard Revisions for Wholesale and Retail Trade Sectors

May 26, 2021

The U.S. Small Business Administration (SBA) is seeking public comments on a proposed rule that would revise the small business size standards for businesses in two North American Industrial Classification System sectors -- Wholesale Trade and Retail Trade -- to increase small business eligibility for SBA’s loan programs. SBA proposes to increase size standards for 49 industries in those sectors.

SBA Launches $100M Community Navigator Pilot Program

May 25, 2021

The U.S. Small Business Administration (SBA) announced it is accepting applications for its new Community Navigator Pilot Program. This new initiative, established by the American Rescue Plan, will leverage a community navigator approach to reach the nation’s smallest businesses, with a priority focus on those owned by socially and economically disadvantaged individuals, as well as women and veterans. SBA will accept applications through July 12, 2021, and anticipates making award decisions by August 2021.

Department of Labor

Labor Department Announces Selection of Researchers to Analyze How Labor Policies, Protections, Programs Reach Underserved Communities

May 26, 2021

The U.S. Department of Labor announced the selection of five teams and individuals to analyze how federal labor policies, protections and programs reach historically underserved communities. The researchers will examine data on unemployment insurance, disability employment, H-2A temporary agricultural employment enforcement, and the Family and Medical Leave Act. Each of the groups and individuals will receive up to $30,000 to support their efforts.

Department of Education

Secretary Cardona Holds Virtual Roundtable Discussion on Pell Grants for Incarcerated Individuals

May 25, 2021

Miguel Cardona, Secretary of the U.S. Department of Education, held a virtual roundtable regarding the importance of providing Pell Grants to incarcerated individuals. As part of the roundtable, Secretary Cardona spoke with students and former students who took college courses in prison.


UK Financial Conduct Authority

FCA Releases Statement on Recovery Loan Scheme

May 26, 2021

The UK Financial Conduct Authority (FCA) released a statement on its regulatory role in the Recovery Loan Scheme (RLS), which was launched by the government-owned British Business Bank on April 6, 2021 to provide financial support to UK businesses following the COVID-19 pandemic. According to the statement, “[m]ost of the lending available as part of the RLS won’t be a regulated activity. Therefore, most lending applications will be outside (the FCA’s) regulatory perimeter set by Parliament.”

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, 2021)

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