PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Friday, July 2, 2021
July 02, 2021
FedACTion Task Force
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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 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.
U.S. House of Representatives
Committee on Financial Services
Hearing: Addressing Climate as a Systemic Risk: The Need to Build Resilience within Our Banking and Financial System
June 30, 2021
The Subcommittee on Consumer Protection and Financial Institutions of the House Committee on Financial Services held a hearing titled “Addressing Climate as a Systemic Risk: The Need to Build Resilience within Our Banking and Financial System.”
Federal Agencies
U.S. Department of the Treasury
Statement from Secretary of the Treasury Janet L. Yellen on Agreement of 130 Countries to Support a Global Minimum Tax for the World’s Largest Corporations
July 1, 2021
Secretary of the U.S. Department of the Treasury Janet L. Yellen issued a statement on the agreement of 130 countries to support a global minimum tax for the world’s largest corporations.
Study: Small Insurer Competitiveness in the Terrorism Risk Insurance Marketplace
June 30, 2021
The U.S. Department of the Treasury’s (Treasury) Federal Insurance Office (FIO) released a report entitled “Study of Small Insurer Competitiveness in the Terrorism Risk Insurance Marketplace.” The Terrorism Risk Insurance Act of 2002, requires FIO to conduct and release such a report every other year. The report analyzes data that was collected by Treasury concerning the participation of insurers in the Terrorism Risk Insurance Program.
Secretary of the Treasury Janet L. Yellen and Deputy Secretary of the Treasury Wally Adeyemo’s Meeting with National Black Leaders
June 30, 2021
Secretary of the U.S. Department of the Treasury (Treasury) Janet L. Yellen and Deputy Secretary of the Treasury Wally Adeyemo hosted a group of national Black leaders for a virtual roundtable discussion on the state of the economy, the racial wealth gap, and Treasury’s work to advance racial equity through its policies and programs. The Secretary underscored the Biden Administration’s commitment to addressing the structural economic disparities facing our country, particularly those facing Black Americans and Black-owned businesses, and to engaging regularly with Black leaders as Treasury works to tackle such issues.
Federal Reserve Board
Federal Reserve Announces it Will be Releasing New Tool to Help Community Banks Implement Current Expected Credit Losses (CECL) Accounting Standard
July 1, 2021
The Board of Governors of the Federal Reserve System announced it will be releasing a new tool to help community banks implement the Current Expected Credit Losses (CECL) accounting standard. Known as the Scaled CECL Allowance for Losses Estimator or “SCALE,” the spreadsheet-based tool draws on publicly available regulatory and industry data to aid community banks with assets of less than $1 billion in calculating their CECL allowances.
Federal Reserve Bank of New York
New York Fed Names Per von Zelowitz as Director of the New York Innovation Center
July 1, 2021
The Federal Reserve Bank of New York (New York Fed) announced that Per von Zelowitz has been named the director of the New York Innovation Center effective July 19, 2021. The New York Innovation Center (Center) is a strategic partnership with the Innovation Hub of the Bank for International Settlements (BIS) that will be housed at the New York Fed. The Center will collaborate with colleagues in the Federal Reserve System, the BIS Innovation Hub, and the private and public sectors on innovations that enhance the functioning of the global financial system and the ability of central banks to carry out their missions.
Blog: Credit, Income, and Inequality
July 1, 2021
The Federal Reserve Bank of New York’s Liberty Street Economics blog issued a post titled “Credit, Income and Inequality.”
U.S. Securities and Exchange Commission
Commissioner Peirce’s Statement Objecting to the IFRS Foundation’s Proposed Constitutional Amendments Relating to Sustainability Standards
July 1, 2021
Commissioner Hester M. Peirce of the U.S. Securities and Exchange Commission issued a statement on the International Financial Reporting Standards Foundation’s proposed constitutional amendments relating to sustainability standards.
FASB Issues Proposed Taxonomy Implementation Guide for Financial Instruments-Debt Securities
June 30, 2021
The U.S. Securities and Exchange Commission released an announcement that the Financial Accounting Standards Board (FASB) has published a proposed Taxonomy Implementation Guide (Guide) based on the 2021 U.S. Generally Accepted Accounting Principles Financial Reporting Taxonomy. The proposed Guide provides an overview of the modeling for reporting debt securities under FASB Accounting Standards Codification Topic 320, Investments-Debt Securities.
Consumer Financial Protection Bureau
CFPB Consumer Complaint Bulletin Highlights Consumers’ Difficulties during Pandemic
July 1, 2021
The Consumer Financial Protection Bureau released a new complaint bulletin covering several areas of concern related to relief provided in response to the COVID-19 pandemic, including the Centers for Disease Control and Prevention eviction moratorium. Some consumers reported facing homelessness because of the negative impact of an eviction on their credit history reported by debt collectors. Consumers were also deprived of the full benefit of the economic impact payments as a result of overdraft practices at some financial institutions, and not all student loan borrowers were able to get the timely information and assistance they needed from their student loan servicer to get the full benefit of the variety of federal loan forgiveness, cancellation, and discharge programs offered through the CARES Act.
As Federal Eviction Protections Come to an End, CFPB Warns Landlords and Consumer Reporting Agencies to Report Rental Information Accurately
July 1, 2021
The Consumer Financial Protection Bureau released an enforcement compliance bulletin reminding landlords, consumer reporting agencies, and others of their critical obligations to accurately report rental and eviction information as the federal eviction moratorium and other pandemic rental protections come to an end.
U.S. Small Business Administration
Bulletin: USMCA Webinar: Accessing USMCA Markets with E-Commerce
July 1, 2021
The U.S. Small Business Administration released a bulletin advertising the U.S.-Mexico-Canada Agreement Webinar titled “Accessing USMCA Markets with E-Commerce.” The webinar will teach small businesses how they can expand online sales to customers in the U.S., Canada and Mexico by utilizing free online e-commerce tools and resources as well as small business counseling services. The webinar will be held on Thursday, July 22, 2021 at 2:00 p.m. Eastern.
SBA Announces Extension of $100 Million Grant ‘Community Navigator Pilot’ Program Proposals to July 23, 2021
July 1, 2021
The U.S. Small Business Administration (SBA) announced the extended application date for its new Community Navigator Pilot Program. SBA will accept proposal submissions through July 23, 2021, and anticipates making award decisions by September 2021. The new initiative, established by the American Rescue Plan Act of 2021, will leverage a community navigator approach to reach the nation’s smallest businesses, with a priority focus on those owned by socially and economically disadvantaged individuals, as well as women and veterans.
Federal Housing Finance Agency
FHFA Issues Policy Statement on Fair Lending
July 1, 2021
The Federal Housing Finance Agency (FHFA) issued a Policy Statement on Fair Lending. The statement communicates FHFA's commitment to comprehensive fair lending oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks and provides a foundation for building out FHFA's fair lending program.
U.S. Department of Labor
Labor Department Issues Release on Unemployment Insurance Weekly Claims
July 1, 2021
The U.S. Department of Labor issued a release regarding weekly unemployment insurance claims. The release states that, in the week ending June 26, 2021, the advance figure for seasonally adjusted initial claims was 364,000, a decrease of 51,000 from the previous week’s revised level (the lowest level for initial claims since March 14, 2020 when it was 256,000); the previous week’s level was revised up by 4,000 from 411,000 to 415,000; the four-week moving average was 392,750, a decrease of 6,000 from the previous week’s revised average (the lowest level for this average since March 14, 2020 when it was 225,500); and the previous week’s average was revised up by 1,000 from 397,750 to 398,750.
U.S. Department of Education
Department of Education Implements TEACH Grant Program Changes to Benefit Teachers and Students
July 1, 2021
The U.S. Department of Education (DoE) announced changes to the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program, the federal student aid grant program that directly benefits teachers working in high-need fields and underserved schools. The DoE implemented enhancements to the program through the American Families Plan, which would double the annual grant amount, increase program flexibilities and address high grant-to-loan conversion rates.
U.S. Department of Education Releases More Than $3 Billion in American Rescue Plan Funds to Support Children with Disabilities
July 1, 2021
The U.S. Department of Education (DoE) released more than $3 billion in American Rescue Plan (ARP) funds to states to support infants, toddlers, children, and youth with disabilities. The new funding will help aid more than 7.9 million infants, toddlers, and students served under the Individuals with Disabilities Education Act and adds to the ARP Elementary and Secondary School Emergency Relief allocation of $122 billion in state funding for K-12 schools, which the DoE announced in March 2021.
International
European Banking Authority
EBA Provides Clarification on the Implementation of the New Prudential Regime for Investment Firms
July 1, 2021
The European Banking Authority (EBA) published an Opinion to ease the implementation of the Investment Firms Regulation (IFR) and Investment Firms Directive (IFD), which came into effect on June 26, 2021. The IFR/IFD classify investment firms according to their business model and size, the latter of which is benchmarked on various thresholds. For most investment firms, sufficient clarity already exists with regards to the prudential regime, which applies to them. However, in a few cases, especially for investment firms of third country groups, the Opinion provides guidance on the actions to be taken in case of uncertainty on whether these investment firms should apply for an authorization as a credit institution in the absence of the delegated act establishing the methodology for the calculation of the highest threshold (the EUR 30bn threshold), on which the EBA has opened a second public consultation.
EBA Confirms Quality of Unsolicited Credit Assessments
July 1, 2021
The European Banking Authority published a revised Decision confirming the quality of unsolicited credit assessments assigned by certain External Credit Assessment Institutions (ECAIs) for calculating institutions’ capital requirements. The revised Decision, which reflects the recognition of two additional ECAIs and the de-registering of three ECAIs, is part of the Single Rulebook in banking and will ensure regulatory harmonization across the European Union regarding the use of unsolicited credit ratings for determining institutions’ own funds requirements.
Bank of England
Speech: It’s a Recovery, But Not as We Know It
July 1, 2021
Governor Andrew Bailey of the Bank of England gave a speech Mansion House titled “It’s a Recovery, But Not as We Know It.” In his speech Mr. Bailey discusses how COVID has not had the same impact on the economy as other shocks did in the past.
Administration Changes
Appointments/Confirmation Hearings
Department of the Treasury - Janet Yellen (effective January 26, 2021)
Consumer Financial Protection Bureau - Rohit Chopra (Nominee)
- Acting Director: Dave Uejio (January 20, 2020)
- Confirmation hearing held on March 2, 2021
- Committee approval March 10, 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
Financial Crimes Enforcement Network
National Credit Union Administration - Todd M. Harper
Department of Housing and Urban Development - Marcia Fudge (effective March 10, 2021)
Department of Education - Dr. Miguel Cardona (effective March 2, 2021)