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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Friday, December 15 2023

December 15, 2023

FedACTion Task Force

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Major Developments

Financial Stability Oversight Council

December 14, 2023

FSOC Issues Annual Report

The Financial Stability Oversight Council released its 2023 annual report reviewing financial market developments, describing potential emerging threats to U.S. financial stability, identifying vulnerabilities in the financial system, and making recommendations to mitigate those threats and vulnerabilities. Highlighted in the report are Artificial Intelligence, Climate-related Financing and Digital Assets.

Congress

U.S. House of Representatives

Committee on Financial Services

Anti-Harassment Policy Plans from the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the National Credit Union Administration Received by House Committee on Financial Services

December 14, 2023

The Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the National Credit Union Administration have each responded a request for information regarding their policies and procedures for addressing harassment in their respective agencies and any steps they are taking to strengthen safeguards for their workers.

  • The response from the FDIC can be found here.
  • The response from the Fed can be found here.
  • The response from the OCC can be found here.
  • The response from the NCUA can be found here.

Federal Agencies

U.S. Department of the Treasury

New U.S. Department of the Treasury Analysis: Purchasing Power for American Households Now Surpasses Pre-Pandemic Levels

December 14, 2023

The U.S. Department of the Treasury published an analysis on the purchasing power of American households.

U.S. Department of the Treasury, IRS Release Proposed Guidance to Continue U.S. Clean Energy Manufacturing Boom, Strengthen America's Energy Security

December 14, 2023

The U.S. Department of the Treasury and Internal Revenue Service released proposed guidance on the section 45X Advanced Manufacturing Production Credit established by the Inflation Reduction Act.

U.S. and U.K. Target IRGC-QF Support to Hamas and Other Proxy Groups

December 14, 2023

The U.S. Department of the Treasury's Office of Foreign Assets Control and the United Kingdom are jointly taking action against Iran's Islamic Revolutionary Guard Corps – Qods Force (IRGC-QF), Hamas, and Palestinian Islamic Jihad (PIJ).

Blog: Sanctions and Russia's War: Limiting Putin's Capabilities

December 14, 2023

The U.S. Department of the Treasury published a blog post entitled, "Sanctions and Russia's War: Limiting Putin's Capabilities."

Federal Reserve Board

OIG Report: Results of Scoping of the Evaluation of the Board's Intelligence Programs

December 14, 2023

The Federal Reserve Board's Office of Inspector General published a report entitled, "Results of Scoping of the Evaluation of the Board's Intelligence Programs."

Federal Reserve Bank of New York

Article: AI Applications in Finance: Considering the Benefits and Risks

December 14, 2023

The Federal Reserve Bank of New York published a The Teller Window article entitled, "AI Applications in Finance: Considering the Benefits and Risks."

Federal Reserve Bank of Boston

Research Note: Accounting for Debt Securities in the Age of Silicon Valley Bank

December 14, 2023

The Federal Reserve Bank of Boston published a research note entitled, "Accounting for Debt Securities in the Age of Silicon Valley Bank."

Federal Deposit Insurance Corporation

FDIC Signature Bridge Bank Receivership Sells 20 Percent Equity Interest in Entity Holding $16.8 Billion of Commercial Real Estate Loans

December 14, 2023

The Federal Deposit Insurance Corporation, as receiver of Signature Bridge Bank, N.A., completed one of several transactions following the marketing of the $33 billion Commercial Real Estate loan portfolio retained in receivership after the failure of Signature Bank, New York, New York.

Commodity Futures Trading Commission

Statement of Commissioner Goldsmith Romero Before the Agricultural Advisory Committee

December 14, 2023

Commodity Futures Trading Commission Commissioner Christy Goldsmith Romero gave a statement before the Agricultural Advisory Committee.

National Credit Union Administration

Board Approves NCUA 2024–2025 and Central Liquidity Facility Budgets

December 14, 2023

The National Credit Union Administration Board held its eleventh open meeting of 2023 and approved four items:

The agency's budget for 2024 and 2025;

The Central Liquidity Facility budget for 2024;

The issuance of a final notice on the Operating Fee Schedule Methodology; and

The issuance of a notice and request for comment on the existing Overhead Transfer Rate (OTR) Methodology.

Freddie Mac

Freddie Mac Multifamily Apartment Investment Market Index Ticks Down in Third Quarter of 2023, Posts Slight Annual Increase

December 14, 2023

In the third quarter of 2023, the Freddie Mac Multifamily Apartment Investment Market Index® (AIMI®) fell to 107.1 across the United States, with all 25 regional markets tracked by the index also down for the quarter.

Bank Policy Institute

Blog: The New Profit and Loss Attribution Tests: Not Ready for Prime Time

December 14, 2023

The Bank Policy Institute published a blog post entitled, "The New Profit and Loss Attribution Tests: Not Ready for Prime Time."

International

European Commission

Commission welcomes political agreement on rules enforcing human rights and environmental sustainability in global supply chains

December 14, 2023

The European Commission welcomes the political agreement reached between the European Parliament and the Council on the Corporate Sustainability Due Diligence Directive.

Bank of England

Monetary Policy Committee: Bank rate maintained at 5.25% - December 2023

December 14, 2023

The Bank of England released the summary and minutes from the Monetary Policy Committee held on December 13, 2023, during which the Committee voted to maintain the bank rate at 5.25%.

Exchange of letters between the Governor and the Chancellor regarding CPI Inflation - December 2023

December 14, 2023

Bank of England Governor Andrew Bailey and HM Treasury Chancellor of the Exchequer Jeremy Hunt exchanged letters regarding inflation.

Monetary Policy Committee dates for 2025

December 14, 2023

The Monetary Policy Committee released provisional dates for MPC announcements on bank rate and meeting minutes.

Agents' summary of business conditions - 2023 Q4

December 14, 2023

The Bank of England published the summary of reports on business conditions compiled by its twelve regional Agents for Q4 2023.

Decision Maker Panel survey - 2023 Q4

December 14, 2023

The Bank of England published the results from the Decision Maker Panel survey for Q4 2023.

Financial Conduct Authority

FCA welcomes the launch of industry code of conduct for ESG ratings and data products providers

December 14, 2023

The Financial Conduct Authority welcomes the launch by the International Capital Market Association and the International Regulatory Strategy Group of a voluntary code of conduct for Environmental, Social and Governance (ESG) ratings and data products providers.

Review: Retail banking Consumer Duty multi-firm work

December 14, 2023

The Financial Conduct Authority published the findings of the Retail Banking Consumer Duty multi-day firm work.

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 (effective January 5, 2023)

  • 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)

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.