PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Tuesday, February 15, 2022
February 15, 2022
FedACTion Task Force
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Federal Agencies
Federal Reserve Board
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Report: Agencies Issue 2021 Shared National Credit Review
February 14, 2022
The Federal bank regulatory agencies have released the 2021 Shared National Credit (SNC) Review Report. According to the two SNC examinations conducted last year, credit risk for large syndicated loans improved modestly in 2021, but remains high due to the effects of COVID-19. The report notes that the recovery in commodity prices led to significant improvement in the loans to the oil and gas sector that is partially offset by year-over-year weakening in commercial real estate, particularly in the hotel, office, and retail sub-sectors.
Federal Reserve Bank of New York
Inflation Expectations Decline at the Short- and Medium-Term Horizons
February 14, 2022
The Federal Reserve Bank of New York's Center for Microeconomic Data released the January 2022 Survey of Consumer Expectations, which shows a decrease in short- and medium-term inflation expectations. Median home price expectations, however, increased above its 2021 average. Labor, income, and spending expectations were all largely stable in January.
Office of the Comptroller of the Currency
Speech: Acting Comptroller Discusses Modernization of the Community Reinvestment Act
February 14, 2022
Acting Comptroller of the Currency Michael J. Hsu gave prepared remarks titled, "The Community Reinvestment Act in Perspective," before the National Community Reinvestment Coalition, where he discussed the history of the Community Reinvestment Act (CRA). His remarks highlighted how a modernized CRA can help address persistent disparities and gaps in wealth and economic opportunities in minority, rural, and other vulnerable communities.
Securities and Exchange Commission
Investor Bulletin: Crypto Asset Interest-bearing Accounts
February 14, 2022
The Securities and Exchange Commission's Office of Investor Education and Advocacy and the Division of Enforcement's Retail Strategy Task Force issued an Investor Bulletin to educate investors about risks associated with accounts that pay interest on crypto asset deposits.
2022 Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold
February 14, 2022
The Consumer Financial Protection Bureau published annual adjustments for asset-size exemption thresholds under the Truth in Lending Act, as implemented by Regulation Z, which became effective on January 1, 2022. The asset-size thresholds exempt certain credit unions from escrow account requirements for higher-priced mortgage loans and specific qualified mortgages under Regulation Z.
Bank Policy Institute
Letter: Bank Climate Risk Guidance Needs Flexibility
February 14, 2022
Banks and financial regulators are considering different ways to manage climate-related financial risk. In two separate comment letters filed with the OCC and the Basel Committee, the Bank Policy Institute offers principles to guide regulators' approaches.
State Agencies
New York State Department of Financial Services
DFS Superintendent Adrienne A. Harris Announces Emergency Regulation on Maximum Check Cashing Fee
February 14, 2022
Superintendent of Financial Services Adrienne A. Harris announced that the New York State Department of Financial Services (DFS) is issuing a new emergency regulation to halt annual increases and maintain the current maximum check cashing fee at 2.27% while a new fee methodology is developed.
California Department of Financial Protection and Innovation
Monthly Bulletin
February 14, 2022
The California Department of Financial Protection and Innovation published its monthly bulletin.
International
Bank of England
Financial Conduct Authority
Prudential Regulation Authority
Payment Systems Regulator
Payment Systems Memorandum of Understanding
February 14, 2022
The Bank of England, the Financial Conduct Authority, the Prudential Regulation Authority and the Payment Systems Regulator have a Memorandum of Understanding (MoU) that sets out the high-level framework the Authorities use to cooperate with one another, in relation to payment systems in the UK. The Financial Services (Banking Reform Act) 2013 requires the Authorities to review this MoU annually.
Blog Post: How is the Bank of England responding to climate change?
February 14, 2022
Climate change will affect the UK economy, including the financial system. Our job is to keep the financial system stable as the UK moves to a net zero economy. So we work to:
UK Financial Conduct Authority
FCA Secures Contract Changes for Buy-Now-Pay-Later Customers
February 14, 2022
The Financial Conduct Authority (FCA) has secured changes to potentially unfair and unclear terms in the contracts of several buy-now-pay-later companies. The FCA was concerned there was a potential risk of harm to consumers as a result of the way some of the firm's terms were drafted.
Administration Changes
Vacancies
Federal Reserve Board
- Vice Chair for Supervision – Sarah Bloom Raskin nominated January 14, 2022 (nomination hearing held on February 3, 2022)
- Governor – Lisa Cook nominated January 14, 2022
(nomination hearing held on February 3, 2022) - Governor – Phillip Jefferson, nominated January 14, 2022
(nomination hearing held on February 3, 2022)
Federal Deposit Insurance Corporation
- Chair – Vacant (Martin Gruenberg serves as Acting Chair)
- 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
- Statement by Federal Reserve Board Chair Jerome H. Powell on his nomination by President Biden (November 22, 2021)
- Statement by Governor Lael Brainard on her nomination by President Biden (November 22, 2021)
- Secretary of the Treasury Janet L. Yellen Statement on Federal Reserve Nominations (November 22, 2021)
- Statement by Secretary Walsh on Federal Reserve Nominations (November 22, 2021)
- Brown Statement on the Renomination of Jerome Powell for Fed Chair (November 22, 2021)
- Toomey Statement on Renomination of Jerome Powell for Fed Chair (November 22, 2021)
- Brown Applauds Biden's Nomination of Governor Lael Brainard for Vice Chair (November 22, 2021)
- Brown Applauds Biden's Nominees for Fed Board (January 14, 2022)
- Toomey Statement on President Biden's Fed Nominees (January 14, 2022)
- Waters Applauds Nominations of Sarah Bloom Raskin, Lisa Cook, and Philip Jefferson to Leadership Roles in the Federal Reserve (January 14, 2022)
- Statement by Secretary of the Treasury Janet L. Yellen on Federal Reserve Nominations (January 14, 2022)
Federal Reserve Bank of New York
Consumer Financial Protection Bureau - Rohit Chopra (effective October 12, 2021)
- Statement by House Committee on Financial Services Chair Maxine Waters on Rohit Chopra's Confirmation (September 30, 2021)
- CSBS Statement on Rohit Chopra Confirmation as CFPB Director (September 30, 2021)
Securities and Exchange Commission - Gary Gensler (effective April 17, 2021)
- LizAnn Eisen Joins Division of Corporation Finance as Deputy Director, Disclosure Program (January 27, 2022)
- Lori H. Price Named Acting Director of the Office of Credit Ratings; Ahmed Abonamah to Leave SEC (February 1, 2022)
- Kelly L. Gibson, Director of the Philadelphia Regional Office, to Leave the SEC; Scott Thompson and Joy Thompson named Office Acting Co-Heads (February 11, 2022)
Small Business Administration - Isabella Casillas Guzman (effective March 16, 2021)
- Statement by Administrator Guzman Applauding President Biden's Appointees to Lead SBA Regional Offices (November 18, 2021)
- Statement by Administrator Guzman Applauding President Biden's New Appointees to the U.S. Small Business Administration (December 6, 2021)
- Statement by Administrator Guzman Applauding President Biden's New Appointees to the U.S. Small Business Administration (January 25, 2022)
Commodity Futures Trade Commission – Rostin Behnam (effective December 17, 2021)
- Kristin Johnson, Nominee for Commissioner of the Commodity Futures Trading Commission (September 13, 2021)
- Christy Goldsmith Romero, Nominee for Commissioner of the Commodity Futures Trading Commission (September 13, 2021)
- U.S. Senate Unanimously Confirms Behnam as Chairman (December 17, 2021)
- CFTC Chairman Rostin Behnam Announces Executive Staff Appointments (January 20, 2022)
- CFTC Chairman Rostin Behnam Appoints Initial CFTC Leadership (January 25, 2022)
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)
- Adrianne Todman Sworn in as Deputy Secretary of Housing and Urban Development (June 15, 2021)
- Statement from Secretary Marcia L. Fudge on the Confirmation of Alanna McCargo (December 15, 2021)
Federal Housing Finance Agency – Sandra L. Thompson
- Brown Statement on the Selection of Sandra Thompson to Lead FHFA (December 14, 2021)
- Waters Applauds Biden's Nomination of Sandra L. Thompson as Permanent Director of the FHFA (December 14, 2021)
- Statement from HUD Secretary Marcia L. Fudge on the Nomination of Sandra Thompson (December 14, 2021)
U.S. Department of Education - Dr. Miguel Cardona (effective March 2, 2021)
- Secretary Cardona Statement on Confirmation of Education Department Officials Brown, Rodriguez and Graham (October 6, 2021)
- Statement from Secretary Miguel Cardona on the Confirmation of Catherine Lhamon as Assistant Secretary for the Office for Civil Rights (October 20, 2021)
- Statement by U.S. Secretary of Education Miguel Cardona on the Confirmation of Sandra Bruce as the Department's Inspector General (December 3, 2021)
- Statement by U.S. Secretary of Education Miguel Cardona on President Biden's Nomination of LaWanda Toney (December 16, 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.