left-caret
Insights

ph fedaction financial regulatory updates homepage

Daily Financial Regulation Update -- Tuesday, January 11, 2022

January 11, 2022

By FedACTion Task Force

Subscribe to PH FedACTion: Financial Regulatory Updates

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)

Consumer Financial Protection Bureau – Rohit Chopra (effective October 12, 2021)

Securities and Exchange Commission – Gary Gensler (effective April 17, 2021)

Small Business Administration – Isabella Casillas Guzman (effective March 16, 2021)

Commodity Futures Trade Commission – Rostin Behnam (effective 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)

Federal Housing Finance Agency – Sandra L. Thompson

U.S. Department of Education – Dr. Miguel Cardona (effective March 2, 2021)

PH Client Alerts

Click here to read more from our Coronavirus series.

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.