PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Friday, May 26, 2023
May 26, 2023
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Major Developments
Congress
U.S. House of Representatives
Committee on Financial Services
Hearing: International Financial Institutions in an Era of Great Power Competition
May 25, 2023
The U.S. House Committee on Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions held a hearing entitled, "International Financial Institutions in an Era of Great Power Competition."
- Hearing
- Committee Memorandum
- Subcommittee Chair Luetkemeyer Statement
- Ranking Member Waters Statement
Federal Agencies
Federal Reserve Board
Paper: What is Measured in National Accounts?
May 25, 2023
The Federal Reserve Board published a working paper entitled, "What is Measured in National Accounts?"
Federal Reserve Bank of New York
Introducing - Equitable Growth Indicators (EGIs)
May 25, 2023
The New York Fed has just launched the EGIs, which measure disparities across four economic outcomes—inflation, real and nominal earnings, employment, and real and nominal consumer spending.
Federal Reserve Bank of Boston
Paper: The Historical Effects of Banking Distress on Economic Activity
May 25, 2023
The Federal Reserve Bank of Boston published a policy perspective paper entitled, "The Historical Effects of Banking Distress on Economic Activity."
Paper: Non-Bank Financial Institutions and Banks' Fire-Sale Vulnerabilities
May 25, 2023
The Federal Reserve Bank of Boston published a paper entitled, ""Non-Bank Financial Institutions and Banks' Fire-Sale Vulnerabilities."
Office of the Comptroller of the Currency
OCC Revises Bank Enforcement Manual to Address Actions Against Banks with Persistent Weaknesses
May 25, 2023
The Office of the Comptroller of the Currency (OCC) announced revisions to its policies and procedures manual on bank enforcement actions to reflect its consideration of actions against banks that exhibit or fail to correct persistent weaknesses.
Liquidity: Updated Comptroller's Handbook Booklet and Rescissions
May 25, 2023
The OCC issued the updated "Liquidity" booklet of the Comptroller's Handbook, which is prepared for use by OCC examiners in connection with the examination and supervision of banks.
Securities and Exchange Commission
Securities Exchange Commision (SEC_ Updates Exchange Act Rules Q&A Relating to Manipulative and Deceptive Devices and Contrivances: Section 120, Rule 10b5-1
May 25, 2023
The SEC's Division of Corporation Finance updated its Exchange Act Rules Questions & Answers guidance for Manipulative and Deceptive Devices and Contrivances: Section 120, Rule 10b5-1, Questions 120.26, 120.27, and 120.28,
Speech: "Bear in the Woods" Chair Gensler's Remarks before the Investment Company Institute
May 25, 2023
SEC Chair Gary Gensler gave remarks before the Investment Company Institute entitled, ""Bear in the Woods."
FINRA
Report From FINRA Board of Governors Meeting – May 2023
May 25, 2023
FINRA's Board of Governors met on May 17-18 for the second time in 2023. During the meeting, the Board appointed a new public governor, approved FINRA's 2022 Annual Financial Report and added new members to Advisory Committees.
National Credit Union Administration
NCUA Board Approves Proposal to Include Veterans Organizations in Charitable Donation Accounts
May 25, 2023
The National Credit Union Administration Board held its fifth open meeting of 2023 and approved a proposed rule that would amend the charitable donation accounts section of the NCUA's incidental powers regulation. In addition, the NCUA's Chief Financial Officer briefed the Board on the performance of the National Credit Union Share Insurance Fund during the first quarter of 2023.
- Proposed Rule
- Briefing
- Press Release
- Chair Harper Statement – Proposed Rule
- Chair Harper Statement – Briefing
- Vice Chair Hauptman Statement – Proposed Rule
- Vice Chair Hauptman Statement – Briefing
- Board Member Hood Statement – Proposed Rule
- Board Member Hood Statement – Briefing
International
European Commission
Merger Approval: Commission approves the merger between Credit Suisse and UBS
May 25, 2023
The European Commission (Commission) has approved unconditionally, under the EU Merger Regulation, the merger between Credit Suisse and UBS. The Commission concluded that the transaction would not raise competition concerns in the European Economic Area.
European Banking Authority
ESAs propose ESG disclosures for STS securitisations
May 25, 2023
The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) jointly submitted to the European Commission Draft Regulatory Technical Standards on the ESG impact disclosure for Simple, Transparent and Standardised securitisations under the Securitisation Regulation.
ESAs consult to amend technical standards on the mapping of ECAIs' credit assessments
May 25, 2023
The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) launched a public consultation to amend the Implementing Regulations on the mapping of credit assessments of External Credit Assessment Institutions for credit risk.
Bank of England
Speech: What's driving inflation: wages, profits, or energy prices?
May 25, 2023
Bank of England Monetary Policy Committee Member Jonathan Haskel gave a speech entitled, "What's driving inflation: wages, profits, or energy prices?"
UK Financial Conduct Authority
Lenders to pay out up to £47m in redress to borrowers in difficulty
May 25, 2023
The Financial Conduct Authority has worked with almost 100 lenders on how they treat borrowers in financial difficulty and has sought significant improvements from many of them.
Administration Changes
Vacancies
Board of Governors of the Federal Reserve System
- Vice Chair – Vacant (Vice Chair Leal Brainard resigned effective on or around February 20, 2023)
Office of the Comptroller of the Currency
- Comptroller – Vacant (Michael Hsu serves as Acting Comptroller)
Financial Crimes Enforcement Network
- Director – Vacant (Himamauli Das serves as Acting Director)
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 (nominated May 12, 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 May 23, 2022)
- Governor Adriana Kugler (nominated May 12, 2023)
- Federal Reserve announces appointment of Joshua Gallin as Secretary of the Federal Open Market Committee (February 2, 2023)
- President Biden nominates Dr. Philip Jefferson for Vice Chair and Dr. Adriana Kugler to serve as a Member on the Federal Reserve Board, and renominates Dr. Lisa Cook for an additional full term as Member (May 12, 2023)
Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)
- Vincent Alvarez designated Chair of Federal Reserve Bank of New York Board of Directors; Rosa Gil designated Deputy Chair (January 10, 2023)
- Pat Wang appointed as a Class C Director to Federal Reserve Bank of New York Board of Directors (January 10, 2023)
- Federal Reserve Bank of New York names Roberto Perli SOMA Manager (February 2, 2023)
- Cali Brooks and Miguel Soto-Class appointed to Federal Reserve Bank of New York Community Advisory Board (April 4, 2023)
Federal Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)
- Federal Reserve Bank of Boston announces 2023 Board of Directors (January 10, 2023)
- Federal Reserve Bank of Boston announces new external advisory council members (April 10, 2023)
- Federal Reserve Bank of Boston names Egon Zakrajšek as Director of Economic Research (May 17, 2023)
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)
- FDIC announces senior leadership changes in Division of Risk Management Supervision (January 26, 2023)
- FDIC Names Three Bankers to Minority Depository Institutions Subcommittee (May 25, 2023)
Office of the Comptroller of the Currency – Michael Hsu (acting Comptroller, effective May 10, 2021)
- OCC announces Deputy Comptroller for Systemic Risk Identification and Support (January 11, 2023)
- Kristen Baldwin named OCC Chief Information Officer (February 8, 2023)
Securities and Exchange Commission – Gary Gensler (effective April 17, 2021)
- SEC announces appointment of Cristina Martin Firvida as Investor Advocate (January 10, 2023)
- Paul Munter named Chief Accountant (January 11, 2023)
- Erik Gerding named Director of Division of Corporation Finance (January 13, 2023)
- Silvestre Fontes named Director of Boston Regional Office (January 25, 2023)
- Cicely LaMothe named Deputy Director, Disclosure Operations, for the Division of Corporation Finance (February 14, 2023)
- SEC appoints Deborah J. Jeffrey as Inspector General (April 17, 2023)
- Eric R. Werner named Director of Fort Worth Regional Office (April 25, 2023)
Commodity Futures Trading Commission – Rostin Behnam (effective December 17, 2021)
- Commissioner Pham announces members of the CFTC's Global Markets Advisory Committee (January 12, 2023)
- CFTC Commissioner Pham announces additional staff appointment (February 7, 2023)
- Chairman Behnam announces veteran Federal prosecutor Ian McGinley as Enforcement Director (February 28, 2023)
- Commissioner Goldsmith Romero announces Yevgeny Shrago as Senior Counsel and Policy Advisor (April 14, 2023)
- CFTC Appoints Jeffrey Sutton as Executive Director (April 18, 2023)
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)
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.