Menu

PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Friday, October 16, 2020

By
FedACTion Task Force
On Oct 16, 2020

Subscribe to PH FedACTion: Financial Regulatory Updates

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 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

What Happened? What Have We Learned From It? Lessons from COVID-19 Stress on the Financial System

October 15, 2020

Randal K. Quarles, Vice Chair for Supervision at the Board of Governors of the Federal Reserve System, gave a speech at the Institute of International Finance titled “What Happened? What Have We Learned from It? Lessons from COVID-19 Stress on the Financial System.”

Modernizing and Strengthening CRA Regulations: A Conversation with Minority Depository Institutions

October 15, 2020

Governor Lael Brainard of the Board of Governors of the Federal Reserve System gave a speech to the National Bankers Association titled “Modernizing and Strengthening CRA Regulations: A Conversation with Minority Depository Institutions.”

Federal Reserve Bank of New York

U.S. Economy in a Snapshot

October 15, 2020

The Federal Reserve Bank of New York released its monthly “U.S. Economy in a Snapshot.” According to the snapshot, (i) growth of consumer spending slowed some in August, (ii) real business equipment spending plunged in the second quarter of 2020, reflecting disruptions linked to the COVID-19 pandemic, (iii) housing activity continued to expand in August, (iv) payroll employment grew at a slower pace in September, (v) core personal consumer expenditure inflation remained below the Federal Open Market Committee’s longer-run objective, and (vi) U.S. equity indices rose slightly over the last month, amid significant volatility.

Empire State Manufacturing Survey

October 15, 2020

The Federal Reserve Bank of New York released its monthly Empire State Manufacturing Survey. According to firms responding to the October 2020 survey, business activity expanded modestly in New York State, although at a slower pace than in September. New orders and shipments continued to increase, while unfilled orders continued to decline and inventories moved lower. Manufacturers reported a small increase in employment, and a significantly longer average workweek. Overall, firms remain optimistic that conditions would improve over the next six months.

COVID-19 Has Temporarily Supercharged China’s Export Machine

October 15, 2020

The Federal Reserve Bank of New York’s Liberty Street Economics blog post released a post titled “COVID-19 Has Temporarily Supercharged China’s Export Machine.” According to the authors, China’s export performance has been stronger than expected this year. However, a closer look at the data reveals that this growth has not been broad-based, but instead concentrated in areas that were well-positioned to take advantage of the COVID-19 crisis, namely, production of medical supplies and school-from-home and work-from-home goods. Once the crisis passes, China’s exports will likely return to their pre-coronavirus growth path, including a gradual loss of market share to other countries.

Federal Reserve Bank of Boston

Federal Reserve Bank of Boston Provides Updated Main Street Lending Program Overview for Nonprofit Borrowers

October 15, 2020

The Federal Reserve Bank of Boston posted a short overview document for potential nonprofit borrowers under the Main Street Lending Program, explaining the core terms of the program and the eligibility criteria.

Office of the Comptroller of the Currency

Regulatory Capital Rule: Temporary Changes to and Transition for the Community Bank Leverage Ratio Framework

October 15, 2020

The Office of the Comptroller of the Currency, along with the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, published a final rule in the Federal Register  that adopts without change two interim final rules: “Temporary Changes to the Community Bank Leverage Ratio Framework” and “Transition for the Community Bank Leverage Ratio Framework.” The final rule implements a temporary change to the community bank leverage ratio (CBLR) framework, pursuant to the CARES Act, and provides a graduated increase from the temporary 8% CBLR requirement as established under the CBLR final rule published in 2019. The final rule applies to qualifying community banks with less than $10 billion in total consolidated assets that meet other prudential criteria and opt into the CBLR framework. The final rule is effective November 9, 2020.

Consumer Financial Protection Bureau

CFPB Partners with Pro Linebacker Brandon Copeland to Host a Virtual Town Hall on Managing Money During the COVID-19 Pandemic

October 15, 2020

Consumer Financial Protection Bureau Director Kathleen L. Kraninger and Brandon Copeland, pro linebacker and University of Pennsylvania Professor, will host a virtual town hall to discuss how people can better manage their money during tough times. The event, titled “Pressure Creates Diamonds: Money Management during Coronavirus,” will be held on Tuesday, October 27, 2020, from 7-8 p.m. Eastern.

Federal Housing Finance Agency

Foreclosure Prevention, Refinance, and FPM Report — July 2020

October 15, 2020

The Federal Housing Finance Agency released its Foreclosure Prevention, Refinance, and FPM Report for July 2020. According to the report, Fannie Mae and Freddie Mac (the Enterprises) completed 230,198 foreclosure prevention actions in July, bringing the total to 4,916,088 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications. Additionally, beginning in July, the Enterprises offered payment deferrals to 108,492 borrowers who have completed a COVID-19 related forbearance plan, or who have a confirmed but resolved COVID-19 financial hardship.

Department of Labor

DOL Releases Unemployment Insurance Weekly Claims Report Update

October 15, 2020

The U.S. Department of Labor released its Unemployment Insurance Weekly Claims Report Update, which found that in the week ending October 10, the advance figure for seasonally adjusted initial claims was 898,000, an increase of 53,000 from the previous week’s revised level. The previous week’s level was revised up by 5,000 from 840,000 to 845,000. The 4-week moving average was 866,250, an increase of 8,000 from the previous week’s revised average. The previous week’s average was revised up by 1,250 from 857,000 to 858,250.