PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Tuesday, January 11, 2022
January 11, 2022
FedACTion Task Force
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Federal Agencies
Federal Reserve Board
Richard H. Clarida Announces Intention to Resign from the Board of Governors of the Federal Reserve System on January 14, 2022
January 10, 2022
Richard H. Clarida announced his intention to resign from the Board of Governors of the Federal Reserve System on January 14, 2022. He has been a member of the Board and Vice Chair since September 17, 2018.
Notice: Federal Reserve Board Finalizes Technical Rule That Will Streamline Reporting Requirements for Member Banks Related to Their Subscriptions to Federal Reserve Bank Capital Stock
January 10, 2022
The Federal Reserve Board finalized a technical rule that will streamline reporting requirements for member banks related to their subscriptions to Federal Reserve Bank capital stock.
Federal Reserve Bank of New York
Short- and Medium-Term Inflation Expectations Unchanged; Job and Income Expectations Strengthen Further
January 10, 2022
The Federal Reserve Bank of New York's Center for Microeconomic Data released the December 2021 Survey of Consumer Expectations, which shows that both short- and medium-term inflation expectations were unchanged. Uncertainty and disagreement about future inflation decreased at both the short- and medium-term horizons. Home price expectations rose in December but remained below their May 2021 peak. Households reported increased optimism about their labor market prospects, with earnings growth, job loss, and job finding expectations all improving. Households' income growth expectations also improved, rising to a new series high.
Blog Post: How the Federal Reserve's Monetary Policy Implementation Framework Has Evolved
January 10, 2022
The Federal Reserve Bank of New York published a Liberty Economics blog post titled, "How the Federal Reserve's Monetary Policy Implementation Framework Has Evolved."
Federal Housing Finance Agency
Notice: 2022 Annual Adjustment of the Cap on Average Total Assets that Defines Community Financial Institutions
January 10, 2022
The Federal Housing Finance Agency (FHFA) adjusted the cap on average total assets that is used in determining whether a Federal Home Loan Bank member qualifies as a "community financial institution" to $1.323 billion, based on the annual percentage increase in the Consumer Price Index for all urban consumers, as published by the Department of Labor.
Freddie Mac
Freddie Mac Multifamily 2022 Outlook Projects Strong Year for Multifamily Investment
January 10, 2022
Freddie Mac's annual multifamily outlook estimates that overall multifamily origination volume will continue to grow in 2022 to between $475 billion and $500 billion. The report projects rent growth in all markets in 2022, with the Sun Belt markets expected to outperform the nation as smaller markets in the Northeast and Midwest grow at a slower rate. The economic rebound in 2021 resulted in a robust year for the multifamily market, but this growth is expected to moderate in 2022 as concerns about inflation and variants of the COVID-19 virus mount.
International
European Banking Authority
Asset Quality Has Further Improved, but Cyber Risk Remains a Source of Concern for EU Banks
January 10, 2022
The European Banking Authority (EBA) published its quarterly Risk Dashboard together with the results of the autumn edition of the Risk Assessment Questionnaire (RAQ). The NPL ratio declined to 2.1% and the stage 2 ratio contracted to 8.7%. Return on equity was reported higher than pre-pandemic levels at 7.7%. RAQ results show that around 50% of banks cover their cost of equity (CoE) with more than 70% of banks estimate a CoE range between 8% and 12%. It remains to be seen to what extent the Omicron-related wave of infections will affect asset quality and profitability.
Administration Changes
Vacancies
Federal Reserve Board
- Vice Chair
- Vice Chair for Supervision
Federal Deposit Insurance Corporation
- Chair – Will be acting as of February 1, 2022
- 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 – Jerome H. Powell (re-nominated November 22, 2021)
- 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)
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)
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)
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)
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
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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.