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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Friday, January 21, 2022

January 21, 2022

FedACTion Task Force

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Major Developments

Federal Reserve Board

Federal Reserve Board Releases Discussion Paper That Examines Pros and Cons of a Potential U.S. Central Bank Digital Currency (CBDC)

January 20, 2022

The Federal Reserve Board released a discussion paper that examines the pros and cons of a potential U.S. central bank digital currency (CBDC) and its effect on the U.S. payments system. The paper, which does not favor any policy outcome, invites comment from the public for 120 days.

Federal Agencies

U.S. Department of the Treasury

Year in Review: Treasury's Top Accomplishments During Year One of the Biden-Harris Administration

January 20, 2022

The U.S. Department of the Treasury (Treasury) issued a release citing its top accomplishments of the past year, including supporting families and businesses during the COVID-19 pandemic and fostering the robust economic recover.

Securities and Exchange Commission

Staff Guidance for Conducting Shareholder Meetings in Light of COVID-19 Concerns

January 20, 2022

The Securities and Exchange Commission published an updated staff guidance for conducting shareholder meetings in light of COVID-19 concerns. Sections of the staff guidance statement have been updated as of April 7, 2020, and January 19, 2022, respectively.

Consumer Financial Protection Bureau

Consumer Financial Protection Bureau to Examine Colleges' In-House Lending Practices

January 20, 2022

The Consumer Financial Protection Bureau (CFPB) announced it will begin examining the operations of post-secondary schools, such as for-profit colleges, that extend private loans directly to students. The CFPB is issuing an update to its exam procedures including a new section on institutional student loans. As the CFPB begins its supervision, the exam procedures inform industry about practices that CFPB examiners will review, including placing enrollment restrictions, withholding transcripts, improperly accelerating payments, failing to issue refunds, and maintaining improper lending relationships.

Report: State of Bureau Websites and Digital Services

January 20, 2022

The Consumer Financial Protection Bureau published a report titled, "State of Bureau Websites and Digital Services: Response to 21st Century Integrated Digital Experience Act Report Requirement."

FINRA

Notice: FINRA Adopts Amendments to Clarify the Application of FINRA Rules to Security-Based Swaps

January 20, 2022

The Financial Industry Regulatory Authority (FINRA) adopted amendments to its rules to clarify the application of FINRA rules to security-based swaps.

National Credit Union Administration

Speech: NCUA Chairman Todd M. Harper Message to the NCUA's Employees on the Agency's Accomplishments in 2021

January 20, 2022

National Credit Union Administration (NCUA) Chairman Todd M. Harper gave a speech to NCUA employees on NCUA's accomplishments in 2021.

Letter: Operating Fee Schedule Adjusted for 2022

January 20, 2022

National Credit Union Administration (NCUA) Chairman Todd M. Harper wrote a letter to federal credit unions titled, "Operating Fee Schedule Adjusted for 2022." In December, the NCUA Board unanimously approved a new budget. As a result of that decision and other factors, federal credit union operating fees will decrease by an average of 23.7% in 2022.

U.S. Small Business Administration

SBA Have Prioritized an Equitable Recovery, Centered on Strengthening Main Street and Supply Chains During First Year of Biden-Harris Administration

January 20, 2022

The U.S. Small Business Administration (SBA) noted that it continued scaling up to meet extraordinary challenges and deliver results for small businesses across America during the first year of the Biden-Harris Administration.

Letter: Advocacy Submits Response to CFPB's Notice of Proposed Rulemaking on Small Business Lending Data Collection

January 20, 2022

The Office of Advocacy of the U.S. Small Business Administration submitted a comment letter on January 6, 2022 in response to the Bureau of Consumer Financial Protection's notice of proposed rulemaking on small business lending data collection. The proposed rulemaking would implement section 1071 of the Dodd-Frank Act.

Federal Housing Finance Agency

Report: Foreclosure Prevention, Refinance & Federal Property Manager's Report - October 2021

January 20, 2022

The Federal Housing Finance Agency published its October 2021 Foreclosure Prevention, Refinance & Federal Property Manager's Report.

Fannie Mae

Paper: Appraising the Appraisal

January 20, 2022

Fannie published a working paper titled, "Appraising the Appraisal."

U.S. Department of Education

Department of Education Support of Students' Basic Needs and Mitigate the Spread of COVID-19 at Colleges and Universities

January 20, 2022

The U.S. Department of Education announced more resources for students and institutions to help reduce barriers to success in higher education, particularly those created and exacerbated by the COVID-19 pandemic.

International

European Commission

Antitrust: Commission Publishes Final Report on Consumer Internet of Things Sector Inquiry

January 20, 2022

The European Commission published the findings of its competition sector inquiry into the consumer Internet of Things (IoT). The final report and its accompanying staff working document identify potential competition concerns in the rapidly growing markets for IoT related products and services in the European Union.

Speech: 'State of the World' Special Address by President von der Leyen at the World Economic Forum

January 20, 2022

European Commission President Ursula von der Leyen gave a Special State of the World address titled, "Check Against Delivery" at the World Economic Forum.

UK Financial Conduct Authority

FCA Review Finds Evidence of Growing Competition in Retail Banking

January 20, 2022

In an update to its 2018 strategic review of retail banking, the Financial Conduct Authority found that, while still strong, there are signs large banks' historic advantages are starting to weaken, driven by digital innovation and changing consumer behavior. The economic environment – in particular sustained low interest rates – has also constrained banks' financial returns.

Administration Changes

Vacancies

Federal Reserve Board

  • Vice Chair for Supervision – Sarah Bloom Raskin nominated January 14, 2022
  • Governor – Lisa Cook nominated January 14, 2022
  • Governor – Phillip Jefferson, nominated January 14, 2022

Federal Deposit Insurance Corporation

  • Chair – Martin Gruenberg will become Acting Chair as of February 1, 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.