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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Thursday November 21

November 21, 2024

By Paul Hastings Professional

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Major Developments

Congress

U.S. House of Representatives

Committee on Financial Services

Hearing: Oversight of Prudential Regulators

November 20, 2024

The U.S. House Committee on Financial Services held a hearing entitled, “Oversight of Prudential Regulators.” The Committee heard testimony from: The Honorable Michael Barr, Vice Chairman for Supervision, Board of Governors of the Federal Reserve System; The Honorable Martin J. Gruenberg, Chairman, Federal Deposit Insurance Corporation; The Honorable Todd Harper, Chairman, National Credit Union Administration; Acting Comptroller Michael Hsu, Acting Comptroller, Office of the Comptroller of the Currency.

 

Financial Services Committee Releases Final Staff Report Detailing Toxic Culture at the FDIC

November 19, 2024

The U.S. House Committee on Financial Services released the final staff report detailing the toxic workplace culture, including misconduct and harassment, at the Federal Deposit Insurance Corporation (FDIC).

 

Federal Agencies

Federal Reserve Board

Working Paper: Locked In: Rate Hikes, Housing Markets, and Mobility

November 20, 2024

The Federal Reserve Board published a working paper entitled, “Locked In: Rate Hikes, Housing Markets, and Mobility.”

 

Speech: Economic Outlook

November 20, 2024

Federal Reserve Board Governor Lisa D. Cook gave a speech entitled, “Economic Outlook,” at the University of Virginia.

 

Speech: Approaching Policymaking Pragmatically

November 20, 2024

Federal Reserve Board Governor Michelle W. Bowman gave a speech entitled, “Approaching Policymaking Pragmatically,” at the Forum Club of the Palm Beaches, West Palm Beach, FL.

 

Federal Reserve Bank of New York

René Jones Reelected as a Class A Director to New York Fed Board of Directors

November 20, 2024

The Federal Reserve Bank of New York announced that René F. Jones, chairman and chief executive officer of M&T Bank, has been reelected as a Class A Director representing Group 1, which consists of banks with capital and surplus of more than $2 billion. Jones will serve a three-year term ending December 31, 2027.

 

Scott Rechler Reelected as a Class B Director to New York Fed Board of Directors

November 20, 2024

The Federal Reserve Bank of New York announced that Scott Rechler, chairman and chief executive officer of RXR, has been reelected as a Class B Director representing  Group 1, which consists of banks with capital and surplus of more than $2 billion. Rechler will serve a three-year term ending December 31, 2027.

 

Federal Reserve Bank of Boston

Boston Fed’s 68th Economic Research Conference explores the ‘future of finance’

November 20, 2024

The Federal Reserve Bank of Boston held the 68th Economic Research Conference entitled, “The Future of Finance: Implications of Innovation.”

 

Federal Deposit Insurance Corporation

Gruenberg Announces Resignation

November 19, 2024

Federal Deposit Insurance Corporation Chair Martin Gruenberg sent an email to staff announcing his intention to retire effective January 19, 2025.

 

Consumer Financial Protection Bureau

Report: Making Ends Meet in 2024: Insights from the Making Ends Meet Survey

November 20, 2024

The Consumer Financial Protection Bureau published a report entitled, “Making Ends Meet in 2024: Insights from the Making Ends Meet Survey.”

 

Financial Crimes Enforcement Network

FinCEN Further Extends FBAR Deadline for Certain Financial Professionals

November 20, 2024

The Financial Crimes Enforcement Network (FinCEN) announced a further extension of time for certain Report of Foreign Bank and Financial Accounts (FBAR) filings in light of the notice of proposed rulemaking FinCEN issued on March 10, 2016, which proposes to revise the regulations implementing the Bank Secrecy Act regarding FBARs.

 

Federal Housing Finance Agency

Working Paper: How Does Mortgage Performance Vary Across Borrower Demographics Following a Hurricane?

November 20, 2024

The Federal Housing Finance Agency published a staff working paper entitled, “How Does Mortgage Performance Vary Across Borrower Demographics Following a Hurricane?”

 

International

European Commission

EU continues to be a global leader on sustainable finance

November 20, 2024

More than three years after the first transaction of our NextGenerationEU (NGEU) Green Bonds, the EU has issued more than €65 billion of NGEU Green Bonds, setting the EU on track to becoming the largest issuer of Green Bonds in the world.

 

European Banking Authority

The European Supervisory Authorities (EBA, EIOPA, ESMA – ESAs) publish Joint Guidelines on the system for the exchange of information relevant to fit and proper assessments

November 20, 2024

To enhance the information exchange between supervisory authorities within the European Union, also across different parts of the financial sector, the ESAs have developed an ESAs F&P Information System. The Joint Guidelines clarify its use and how data can be exchanged.

 

The EBA updates its list of Common Equity Tier 1 instruments

November 20, 2024

The European Banking Authority published an updated list of capital instruments that are classified as Common Equity Tier 1 (CET1).

 

Bank of England

Speech – Back to the Future 2: Keeping inflation close to the 2% target

November 20, 2024

Bank of England Deputy Governor Dave Ramsden gave a speech entitled, “Back to the Future 2: Keeping inflation close to the 2% target,” at the Leeds University Business School.

 

Administration Changes

Vacancies

Office of the Comptroller of the Currency

  • Comptroller – Vacant (Michael Hsu serves as Acting Comptroller)

 

Appointments/Confirmation Hearings

U.S. Department of the Treasury – Janet Yellen (effective January 26, 2021)

Federal Reserve Board – Jerome H. Powell (effective May 23, 2022)

  • Vice Chair Phillip N Jefferson (sworn in September 13, 2023)
  • Vice Chair for Supervision Michael Barr (sworn in July 19, 2022)
  • Governor Michelle W. Bowman (sworn in November 26, 2018)
  • Governor Christopher J. Waller (sworn in December 18, 2020)
  • Governor Lisa D. Cook (sworn in September 13, 2022)
  • Governor Adriana D. Kugler (sworn in September 13, 2023)

Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)

Federal Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)

Federal Deposit Insurance Corporation – Martin Gruenberg (resigning effective January 19, 2025)

  • Vice Chairman Travis Hill (sworn in January 5, 2023)
  • Director Jonathan McKernan (sworn in January 5, 2023)
  • Director Michael Hsu (Acting Comptroller of the Currency)
  • Director Rohit Chopra (Director of Consumer Financial Protection Bureau)

Office of the Comptroller of the Currency – Michael Hsu (acting Comptroller, effective May 10, 2021)

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

Commodity Futures Trading Commission – Rostin Behnam (effective December 17, 2021)

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

National Credit Union Administration – Todd M. Harper (effective January 20, 2021)

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

U.S. Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021) (resigned March 11, 2024, effective March 22, 2024)

Federal Housing Finance Agency – Sandra L. Thompson (effective June 22, 2022)

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

Financial Crimes Enforcement Network – Andrea Gacki (effective July 13, 2023)

 

PH Client Alerts

Click here to read more from our Coronavirus series.

 

Legislation/Legislative Updates

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.