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Daily Financial Regulation Update -- Tuesday, June 22, 2021

June 22, 2021

By FedACTion Task Force

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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.

Federal Agencies

Federal Reserve Board

Chair Powell Testifies on the Federal Reserve's Response to the Pandemic

June 21, 2021

Chair Jerome H. Powell of the Board of Governors of the Federal Reserve System testified before the House Select Subcommittee on the Coronavirus Crisis.

Federal Reserve Bank of New York

Speech: Remarks at Midsize Bank Coalition of America regarding transition from LIBOR

June 21, 2021

John C. Williams, President and Chief Executive Officer of the Federal Reserve Bank of New York (New York Fed), delivered remarks at the Midsize Bank Coalition of America. President Williams discussed the transition away from LIBOR, the outlook for the economy and the New York Fed’s policy response.

Blog: U.S. Deficit with China during the U.S.-China Trade Conflict

June 21, 2021

As part of its Liberty Street Economics web series, the Federal Reserve Bank of New York published an article that addresses the U.S. deficit with China during the U.S.-China trade conflict. According to U.S. trade data, the United States’ trade deficit with China narrowed significantly following the imposition of additional tariffs on imports from China beginning in 2018. Chinese data tell a much different story, with the bilateral deficit rising nearly to historical highs at the end of 2020. The authors find that much of the decline in the deficit recorded in U.S. data was driven by successful efforts to evade U.S. tariffs, with an estimated $10 billion loss in tariff revenues in 2020.

Blog: Market Power of U.S. Firms

June 21, 2021

As part of its Liberty Street Economics web series, the Federal Reserve Bank of New York published an article that addresses whether U.S. Firms’ market power has increased. A number of studies have documented that market concentration among U.S. firms has increased over the past few decades, as large firms have grown more dominant. The authors examine whether this rising domestic concentration means that large U.S. firms have more market power in the manufacturing sector. Their research argues that increasing foreign competition has in fact reduced U.S. firms’ market power in manufacturing.

Consumer Financial Protection Bureau

Acting Director Dave Uejio Delivers Statement on Impact of the Juneteenth National Independence Day Federal Holiday on Residential Mortgage Closings

June 21, 2021

Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio issued statement regarding the impact of the Juneteenth National Independence Day Act on mortgage lenders. According to Uejio, any guidance ultimately issued by the CFPB would take into account the limited implementation period before the holiday and would be issued after consultation with other regulators and the Conference of State Bank Supervisors to ensure consistency of interpretation for all regulated entities.

Federal Financial Institutions Examination Council

Federal and State Regulators Release Updates to the BSA/AML Examination Manual  

June 21, 2021

The Federal Financial Institutions Examination Council released updates to four sections of the Bank Secrecy Act/Anti-Money Laundering Examination Manual (Manual). Today’s updates affect the following Manual sections:

National Credit Union Association

NCUA to Host 2021 Diversity, Equity, and Inclusion Summit for Credit Union System Stakeholders

June 21, 2021

The National Credit Union Administration will host credit union leaders, credit union trade and support organizations, and diversity and inclusion professionals during the NCUA’s second Diversity, Equity, and Inclusion Summit. This three-day event will take place virtually Nov. 2-4, 2021.

Department of Labor

US Department of Labor Announces Proposed Rulemaking to Protect Tipped Workers and Clarify Use of the Tip Credit

June 21, 2021

The U.S. Department of Labor announced a Notice of Proposed Rulemaking to limit the amount of non-tip producing work that a tipped employee can perform when an employer is taking a tip credit. The proposed rule clarifies when an employee is working in a tipped occupation and when a worker has performed such a substantial amount of non-tipped labor that an employer can no longer take a tip credit and must pay the full federal minimum wage to the worker.

International

Bank of England

Bank of England Publishes Discussion Paper on Supervisory Stress Testing of Central Counterparties

June 21, 2021

The Bank of England published a discussion paper on supervisory stress testing of central counterparties (CCPs). The paper sets out a number of proposals and design issues for a CCP supervisory stress-testing framework.

Speech: The role of the Real Time Gross Settlement

June 21, 2021

Victoria Cleland, Executive Director for Banking, Payments and Innovation of the Bank of England (Bank), delivered a speech about the evolution of payments systems in the UK. Cleland also sets out the role of the Real Time Gross Settlement (RTGS) system and the Bank’s vision for the future.

Bank of England Prudential Regulation Authority

PRA Publishes CP12/21 – Financial Holding Companies: Further Implementation

June 21, 2021

The Bank of England Prudential Regulation Authority (PRA) published Consultation Paper 12/21, which sets out the PRA’s proposed rules in respect of the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies (holding companies) that have been approved or designated in accordance with Part 12B of the Financial Services and Markets Act 2000 (FSMA). It also proposes guidance with respect to directions and penalties over holding companies under Part 12B FSMA, covering the taking of measures, including directions; the imposition of penalties; and the amount of penalties.

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 - Isabella Casillas 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)