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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Wednesday, September 23, 2020

September 23, 2020

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 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.

U.S. House of Representatives

Committee on Financial Services

House Financial Services Committee Holds Hearing on Pandemic Response by the Department of the Treasury and the Federal Reserve

September 22, 2020

The U.S. House Committee on Financial Services held a hybrid hearing entitled “Oversight of the Treasury Department’s and Federal Reserve’s Pandemic Response.” Steven T. Mnuchin, Secretary of the U.S. Department of the Treasury, and Jerome H. Powell, Chair of the Board of Governors of the Federal Reserve System, provided testimony at the hearing.

Federal Agencies

Federal Reserve Bank of New York Publishes Blog Post on Facilities Established in Response to COVID-19

September 22, 2020

The Federal Reserve Bank of New York published a Liberty Street Economics blog post (Post) entitled “Expanding the Toolkit: Facilities Established to Respond to the COVID-19 Pandemic.” In the Post, the authors argue that the new lending facilities launched in response to the COVID-19 pandemic, although unprecedented, are a natural extension of the Federal Reserve’s toolkit. They also explain why these new facilities are particularly useful as part of the response to the pandemic, which is an economic shock very different from a financial crisis.

International

European Banking Authority

EU Financial Regulators Assess Risks to Financial Sector, Call for Enhanced Cooperation

September 22, 2020

The three European Supervisory Authorities (the European Banking Authority, European Securities and Markets Authority and European Insurance and Occupational Pensions Authority) issued their first joint risk assessment report (Report) of the financial sector since the outbreak of the COVID-19 pandemic. The Report highlights how the pandemic has led to further amplified profitability concerns across the board and heightened liquidity challenges in segments of the investment fund sector. The Report particularly points to economic and market uncertainty as a key challenge going forward.

Bank of England

Bank of England Provides Update on COVID-19 Corporate Financing Facility

September 22, 2020

HM Treasury and the Bank of England (Bank) confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper effective March 23, 2021. The CCFF has helped eligible businesses bridge COVID-19-related temporary disruption to their cash flows.

Sweeney Delivers Speech Outlining How Insurers Can Help the Economy

September 22, 2020

Anna Sweeney, Executive Director of the Bank of England’s Insurance Supervision Division, delivered a speech entitled, “Ask Not what the Economy can do for Insurers – Ask What Insurers can do for the Economy,” at the Bank of America 25th European Financials CEO Conference.