Menu

PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Thursday, November 19, 2020

By
FedACTion Task Force
On Nov 19, 2020

Subscribe to PH FedACTion: Financial Regulatory Updates

PH Client Alerts

Click here to read more from our Coronavirus series.

Major Developments

Further Amendments to Main Street Lending Program’s FAQs

November 18, 2020

The Main Street Lending Program’s For-Profit and Non-Profit FAQs were amended to:

(i) provide guidance on how Main Street lenders can seek instructions from the Main Street SPV regarding a “Core Rights Act” under the Participation Agreement, as well as a related form (see FAQ J.8);

(ii) provide a clarification with respect to restructuring underlying credit facilities before upsizing under the Main Street Expanded Loan Facility and the Nonprofit Organization Expanded Loan Facility (FAQs D.6 and D.11); and

(iii) clarify the circumstances under which an underlying credit facility can be upsized and extended to multiple co-borrowers under the Main Street Expanded Loan Facility and the Nonprofit Organization Expanded Loan Facility (FAQ H.25).

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 Bank of New York

The Affordable Care Act and the COVID-19 Pandemic: A Regression Discontinuity Analysis

November 18, 2020

The Federal Reserve Bank of New York released a staff report titled “The Affordable Care Act and the COVID-19 Pandemic: A Regression Discontinuity Analysis.” The authors investigate whether Medicaid expansion under the Affordable Care Act has had an effect on the spread and intensity of COVID-19 across the United States.

Department of Housing and Urban Development/Federal Housing Administration

Drawdown Levels for the Initial Round of CARES Act Emergency Solutions Grants Were Minimal

November 16, 2020

The Office of the Inspector General (OIG) of the U.S. Department of Housing and Urban Development (HUD) released a memorandum related to its limited review to identify HUD’s CARES Act drawdown levels for the initial round of Emergency Solutions Grants (ESG) funding. The OIG also researched information published by grantees on how they have used and will use their funds. The OIG’s review determined that as of July 1, 2020, the ESG CARES Act drawdown levels for the initial round of funding of $1 billion had been minimal. In addition, a majority of grantees in the OIG’s sample had not elected to waive their participation plans or indicated whether they would use their consultation waiver, and many had not published their planned uses of the funds.

COVID-19 Fraud Bulletin: Fraud in Procurements

November 16, 2020

The Office of the Inspector General of the U.S. Department of Housing and Urban Development released a fraud bulletin focusing on fraud in procurements. The bulletin outlines potential schemes where actors use misleading product information to entice business owners and government agencies to purchase defective or ineffective equipment or products that are purported to protect people from COVID-19.

International

European Commission

European Semester Autumn Package: Supporting a Sustainable and Inclusive Recovery Amid High Uncertainty

November 18, 2020

The European Commission presented its autumn economic policy package, including the Opinions on euro area Draft Budgetary Plans (DBPs) for 2021 and policy recommendations for the euro area. The package draws upon the Autumn 2020 Economic Forecast – prepared in a context of high uncertainty – which projected that the economic shock caused by the coronavirus pandemic would leave output in the euro area and the EU below its pre-pandemic level in 2022.

Bank of England

Speech: Seizing the Opportunities from Digital Finance

November 18, 2020

Andy Haldane, Chief Economist and Member of the Monetary Policy Committee at the Bank of England, gave a speech at TheCityUK 10th Anniversary Conference titled “Seizing the Opportunities from Digital Finance.” In his speech, Mr. Haldane discussed the impacts of COVID-19 on financial services.