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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Friday, February 4, 2022

February 04, 2022

FedACTion Task Force

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Congress

U.S. Senate

Committee on Banking, Housing, and Urban Affairs

Committee Holds Nomination Hearing for Board of Governors of Federal Reserve

February 3, 2022

The U.S. Senate Committee on Banking, Housing, and Urban Affairs met in open session to conduct a hearing on the following nominations: The Honorable Sarah Bloom Raskin, of Maryland, to be Vice Chairman for Supervision and a Member of the Board of Governors of the Federal Reserve System; Dr. Lisa DeNell Cook, of Michigan, to be a Member of the Board of Governors of the Federal Reserve System; and Dr. Philip Nathan Jefferson, of North Carolina, to be a Member of the Board of Governors of the Federal Reserve System.

U.S. House of Representatives

Committee on Financial Services

Building Opportunity: Addressing the Financial Barriers to Minority and Women-Owned Businesses' Involvement in Infrastructure Projects

February 3, 2022

The U.S. House Committee on Financial Services held a hearing titled "Building Opportunity: Addressing the Financial Barriers to Minority and Women-Owned Businesses' Involvement in Infrastructure Projects."

Committee on Small Business

Committee Passes Five Bipartisan Bills

February 3, 2022

The House Committee on Small Business passed five bipartisan bills to improve key Small Business Administration entrepreneurial development programs, consolidate information for small business owners online, and increase representation for small firms in trade negotiations and other international economic matters.

Federal Agencies

Remarks by Assistant Secretary for Terrorist Financing and Financial Crimes Elizabeth Rosenberg at the Union of Arab Banks Conference

February 3, 2022

The Assistant Secretary for Terrorist Financing and Financial Crimes addressed the Union of Arab Banks to reinforce that terrorist financing is not the only threat plaguing our financial system and that there is an ongoing global corruption boom, both of which need to be addressed through banks' compliance programs.

Federal Reserve Bank of Boston

The Federal Reserve Bank of Boston and Massachusetts Institute of Technology Release Technological Research on a Central Bank Digital Currency

February 3, 2022

The Federal Reserve Bank of Boston and the Digital Currency Initiative at the Massachusetts Institute of Technology released the findings of their initial technological research into a central bank digital currency, or CBDC. The published research describes a theoretical high-performance and resilient transaction processor for a CBDC that was developed using open-source research software, OpenCBDC. The collaborative effort, known as Project Hamilton, focuses on technological experimentation and does not aim to create a usable CBDC for the United States.

Federal Deposit Insurance Corporation

Paper: Back to the Real Economy: The Effects of Risk Mispricing on the Term Premium and Bank Lending

February 3, 2022

The Center for Research of the Federal Deposit Insurance Corporation released a working paper titled "Back to the Real Economy: The Effects of Risk Mispricing on the Term Premium and Bank Lending."

Financial Crimes Enforcement Network

FinCEN Extends the Comment Period for its Real Estate Advance Notice of Proposed Rulemaking

February 3, 2022

The Financial Crimes Enforcement Network (FinCEN) announced that it would extend the comment period of its Real Estate Advance Notice of Proposed Rulemaking (ANPRM). On December 8, 2021, FinCEN issued the ANPRM to solicit public comment on a potential rulemaking to address the vulnerability of the U.S. real estate market to money laundering and other illicit activity. To allow for additional time to comment on the issues and questions raised by the ANPRM, FinCEN will publish a notice in the Federal Register that extends the comment period for 14 days.

National Credit Union Administration

Submission of 2021 Home Mortgage Disclosure Act Data

February 3, 2022

The National Credit Union Administration issued a letter to federally insured credit unions stating that credit unions located in metropolitan areas that engage in certain types and volume of residential mortgage lending, and that had assets exceeding $48 million as of December 31, 2020, must file a report this year on mortgage loan applications received during 2021, as required under the Home Mortgage Disclosure Act.

U.S. Small Business Administration

In Celebration of Black History Month, SBA Administrator Guzman Announces New Funding to Expand Outreach Centers for Women Entrepreneurs through Minority Serving Institutions

February 3, 2022

The U.S. Small Business Administration (SBA) announced the availability of $1.5 million for 10 new grant opportunities for established Minority Serving Institutions aspiring to host a Women's Business Center (WBC) to provide local outcome-oriented business services for women entrepreneurs.

International

European Banking Authority

Financial Education and Literacy: A Priority for the ESAs

February 3, 2022

The European Supervisory Authorities (ESAs) – EBA, EIOPA and ESMA, held their first joint high-level conference on financial education and literacy on February 1 and February 2, 2022. The conference gathered high-level government representatives as well as experts from public authorities, academia, NGOs, consumer associations and the industry to raise awareness of the topic. It also offered a forum to share ideas and best practices and to gather input from all the stakeholders on how to tackle future challenges.

Bank of England

Monetary Policy Report - February 2022

February 3, 2022

The Monetary Policy Committee of the Bank of England released its Monetary Policy Report (February 2022).

Exchange of Letters between the Governor and the Chancellor on the Asset Purchase Facility

February 3, 2022

Andrew Bailey, Governor of the Bank and England and Rishi Sunak, Chancellor of the Exchequer, exchanged letters regarding the reduction of the Asset Purchase Facility's stock of purchased assets.

Administration Changes

Vacancies

Federal Reserve Board

  • Vice Chair for Supervision – Sarah Bloom Raskin nominated January 14, 2022 (nomination hearing held on February 3, 2022)
  • Governor – Lisa Cook nominated January 14, 2022
    (nomination hearing held on February 3, 2022)
  • Governor – Phillip Jefferson, nominated January 14, 2022
    (nomination hearing held on February 3, 2022)

Federal Deposit Insurance Corporation

  • Chair – Martin Gruenberg will become Acting Chair as of February 4, 2022
  • Vice Chairman

Office of the Comptroller of the Currency

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

Commodity Futures Commission

  • Three (3) Commissioner Vacancies

Appointments/Confirmation Hearings

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

Federal Reserve Board

Federal Reserve Bank of New York

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

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.