PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Friday, August 14, 2020
August 14, 2020
FedACTion Task Force
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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 Bank of New York
The Federal Reserve and U.S. Treasury Did Not Intervene in FX Markets During the Second Quarter
August 13, 2020
In its quarterly report to Congress, the Federal Reserve Bank of New York reported that the Federal Reserve and U.S. Department of the Treasury did not intervene in foreign exchange markets during the April – June 2020 quarter. Exchange rates were less volatile during the second quarter compared the first quarter, as broader financial markets stabilized and liquidity conditions recovered. The U.S. dollar depreciated 3% against the Mexican peso, 3.6% against the Canadian dollar, and 1.8% against the euro. In contrast, it appreciated 0.4% against the Japanese yen.
New York Fed Analysts Examine Disproportionate Effects of COVID-19 on Households with Children
August 13, 2020
As part of its Liberty Street Economics blog series, four research analysts from the Federal Reserve Bank of New York assessed the extent of the underlying economic and financial strain faced by households with children living at home during the COVID-19 pandemic using newly collected data from the monthly Survey of Consumer Expectations. Beyond the consequences of school cancellations and lost social interactions as a result of the COVID-19 pandemic, there is considerable concern about the long-lasting effects of economic hardship on children.
Conference of State Bank Supervisors
State Regulators Applaud Temporary Appraisal Waiver Extension but Seek Long-Term Solution
August 13, 2020
The Conference of State Bank Supervisors surveyed state regulators’ response to the Federal Financial Institutions Examination Council’s (FFIEC) decision to grant the Appraisal Subcommittee’s approval for a one-year extension to North Dakota’s temporary appraisal licensing requirement waiver. North Dakota Commissioner of Financial Institutions Lise Kruse expressed appreciation for the extension, while FFIEC State Liaison Committee Chairman and Tennessee Department of Financial Institutions Commissioner Greg Gonzales found that the waiver is not the sole solution and that state regulators need to work with Congress, banks and the appraisal industry to find a better one..
Office of the Comptroller of the Currency
OCC Publishes Interim Final Rule on Collective Investment Funds: Prior Notice Period for Withdrawals
August 13, 2020
The Office of the Comptroller of the Currency (OCC) published an interim final rule (IFR) in the Federal Register on August 13, 2020, that revises the requirements in 12 CFR 9.18(b)(5)(iii) applicable to a national bank or federal savings association (collectively, a bank) that administers a collective investment fund (CIF) invested primarily in real estate or other assets that are not readily marketable. The rule codifies the time period a bank generally has for withdrawing accounts from these CIFs and creates an exception that allows a bank to extend the time period for withdrawals with OCC approval. The exception established by this interim final rule is intended to enable a bank to preserve the value of a CIF's assets for the benefit of fund participants during unanticipated and severe market conditions, such as those resulting from the current national health emergency concerning the coronavirus disease (COVID-19) outbreak. The rule is effective on August 13, 2020.
U.S. Small Business Association
SBA Announces New Reduced 504 Loan Debenture Rates
August 13, 2020
The U.S. Small Business Administration announced the updated interest rates for the 504 Loan Program offered by Certified Development Companies. Small businesses can now apply for the lowest interest rates since July 2018 as the program is now allowing 20 and 25-year interest rates at 2.214% and 2.269%, respectively.
SBA to Host Webinar on CARES Act Support for Manufacturers
August 13, 2020
The U.S. Small Business Administration (SBA) will host a webinar on August 19, 2020 at 2:00 PM Eastern covering CARES Act support for manufacturers. The program provides Manufacturing Extension Partnerships Centers working with supply chain manufacturers an opportunity to hear directly from the SBA on the latest updates on Paycheck Protection Program and Economic Injury Disaster Loans.
Department of Labor
DOL Releases Unemployment Insurance Weekly Claims Report Update
August 13, 2020
The U.S. Department of Labor’s Unemployment Insurance Weekly Claims Report found that in the week ending August 8, 2020, the advance figure for seasonally adjusted initial claims was 963,000, a decrease of 228,000 from the previous week's revised level. The previous week's level was revised up by 5,000 from 1,186,000 to 1,191,000. The 4-week moving average was 1,252,750, a decrease of 86,250 from the previous week's revised average. The previous week's average was revised up by 1,250 from 1,337,750 to 1,339,000.