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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Friday, August 5, 2022

August 05, 2022

By Paul Hastings Professional

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Major Developments

Federal Reserve Board

Federal Reserve Board announces the individual capital requirements for all large banks, effective on October 1

August 4, 2022

Following its stress test earlier this year, the Federal Reserve Board announced the individual capital requirements for all large banks, effective on October 1, 2022.

Under the Federal Reserve Board's capital framework for bank holding companies, covered savings and loan holding companies, and U.S. intermediate holding companies with $100 billion or more in total consolidated assets, capital requirements are in part determined by the supervisory stress test results The individual capital requirements will include total common equity tier 1 (CET1) capital ratio requirement for each large bank, which is made up of several components, including

• a minimum CET1 capital ratio requirement of 4.5 percent, which is the same for each bank;

• the stress capital buffer (SCB) requirement, which is determined from the supervisory stress test results and is at least 2.5 percent; and

• if applicable, a capital surcharge for global systemically important banks (G-SIBs), which is at least 1.0 percent.

Congress

U.S. Senate

Committee on Banking, Housing, and Urban Affairs

Hearing: Borrowed Time: The Economic Costs of Climate Change

August 4, 2022

The U.S. Senate Committee on Banking, Housing, and Urban Affairs held a hearing entitled, "Borrowed Time: The Economic Costs of Climate Change."

Federal Agencies

U.S. Department of the Treasury

Remarks by Secretary of the Treasury Janet L. Yellen at White House Virtual Roundtable with Business and Labor Leaders

August 4, 2022

Secretary of the Treasury Janet L. Yellen gave remarks at a White House roundtable with business and labor leaders on the Inflation Reduction Act.

Federal Reserve Board

Paper: Demand-Supply imbalance during the COVID-19 pandemic: The role of fiscal policy

August 4, 2022

The Federal Reserve Board published a paper entitled, "Demand-Supply imbalance during the COVID-19 pandemic: The role of fiscal policy."

Federal Reserve Bank of New York

Blog: Pandemic Wage Pressures

August 4, 2022

The Federal Reserve Bank of New York published a Liberty Street Economics blog post entitled, "Pandemic Wage Pressures."

Consumer Financial Protection Bureau

Report: The Convergence of Payments and Commerce: Implications for Consumers

August 4, 2022

The Consumer Financial Protection Bureau published a report entitled, "The Convergence of Payments and Commerce: Implications for Consumers."

FINRA

Regulatory Notice: FINRA Reminds Firms of Their Obligation to Supervise for Digital Signature Forgery and Falsification

August 4, 2022

FINRA published a regulatory notice entitled, "FINRA Reminds Firms of Their Obligation to Supervise for Digital Signature Forgery and Falsification."

Investor Alert: Don't Fall for Cryptocurrency-Related Stock Scams

August 4, 2022

FINRA published an investor alert entitled, "Don't Fall for Cryptocurrency-Related Stock Scams."

Investor Alert: Investing with Borrowed Funds: No "Margin" for Error

August 4, 2022

FINRA published an investor alert entitled, "Investing with Borrowed Funds: No "Margin" for Error."

International

European Banking Authority

EBA updates data on deposit guarantee schemes across the European Economic Area

August 4, 2022

The European Banking Authority published 2021 extended data related to two key concepts and indicators in the Deposit Guarantee Schemes Directive, namely available financial means and covered deposits.

Bank of England

Monetary Policy Report - August 2022

August 4, 2022

The Bank of England published the Monetary Policy Report and Monetary Policy Committee meeting minutes for August 2022.

Provisional Market Notice: Asset Purchase Facility: Gilt Sales

August 4, 2022

The Bank of England published a market notice describing the Bank's provisional approach to the sale of gilts held in the Asset Purchase Facility.

Provisional Market Notice: Short Term Repo Facility

August 4, 2022

The Bank of England published a provisional market notice describing the Short Term Repo facility that the Bank will be introducing to ensure short-term market interest rates remain close to Bank Rate during Asset Purchase Facility unwind.

Monthly Decision Maker Panel data - July 2022

August 4, 2022

The Bank of England released the Decision Maker Panel data for July 2022.

UK Financial Conduct Authority

Whistleblowing quarterly data 2022 Q1

August 4, 2022

The Financial Conduct Authority released the whistleblowing quarterly data for Q1 2022.

Administration Changes

Vacancies

Federal Deposit Insurance Corporation

  • Chair – Vacant (Martin Gruenberg serves as Acting Chair)
  • Vice Chairman – Vacant

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)

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

Federal Deposit Insurance Corporation – Martin Gruenberg (Acting Chair, appointed February 5, 2022)

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

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

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

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

Financial Crimes Enforcement Network

National Credit Union Administration – Todd M. Harper

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

Federal Housing Finance Agency – Sandra L. Thompson, (confirmed May 25, 2022)

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

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.