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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Friday, November 19, 2021

November 19, 2021

FedACTion Task Force

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PH Client Alerts

Click here to read more from our Coronavirus series.

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. Senate

Committee on Banking, Housing, and Urban Affairs

Nomination Hearing

November 18, 2021

The Committee on Banking, Housing, and Urban Affairs conducted a hearing on the nomination of Dr. Saule T. Omarova to be Comptroller of the Currency.

Federal Agencies

Federal Reserve Board
Federal Deposit Insurance Corporation

Office of the Comptroller of the Currency

Agencies Approve Final Rule Requiring Computer-Security Incident Notification

November 18, 2021

Federal bank regulatory agencies announced the approval of a final rule to improve the sharing of information about cyber incidents that may affect the U.S. banking system. The final rule requires a banking organization to notify its primary federal regulator of any significant computer-security incident as soon as possible and no later than 36 hours after the banking organization determines that a cyber incident has occurred. Notification is required for incidents that have materially affected – or are reasonably likely to materially affect – the viability of a banking organization's operations, its ability to deliver banking products and services, or the stability of the financial sector.

Federal Reserve Board

Paper: Words Speak as Loudly as Actions: Central Bank Communication and the Response of Equity Prices to Macroeconomic Announcements

November 18, 2021

The Federal Reserve Board published a paper titled, "Words Speak as Loudly as Actions: Central Bank Communication and the Response of Equity Prices to Macroeconomic Announcements."

Paper

Paper: Decomposing Gender Differences in Bankcard Credit Limits

November 18, 2021

The Federal Reserve Board published a paper titled, "Decomposing Gender Differences in Bankcard Credit Limits."

Paper

Federal Reserve Bank of Boston

Boston Fed's 65th Economic Research Conference Examines Impact of Rising U.S. Debt Levels

November 18, 2021

Economists and central bankers gathered last week for the Federal Reserve Bank of Boston's 65th annual economic conference to discuss whether rising debt levels threaten the financial stability of the United States.

Press Release

Commodity Futures Trading Commission

CFTC Staff Extends Existing Temporary No Action Relief Related to Brexit

November 18, 2021

The Commodity Futures Trading Commission's Division of Market Oversight and Market Participants Division announced that they are extending previously granted temporary no-action relief in connection with the withdrawal of the UK from the EU, known as Brexit.

Financial Crimes Enforcement Network

Notice: FinCEN Issues Notice on Environmental Crimes and Related Financial Activity

November 18, 2021

The Financial Crimes Enforcement Network issued a notice to raise awareness of an upward trend in environmental crimes and associated illicit financial activity. The notice provides financial institutions with specific suspicious activity report filing instructions, and highlights the likelihood of illicit financial activity related to several types of environmental crimes.

Notice

National Credit Union Administration

NCUA Board Approves Draft Strategic Plan, Final Rule on Shared Services Facilities

November 18, 2021

The National Credit Union Administration Board (NCUA) held its tenth open meeting of 2021 and approved two items:

The publication of the NCUA's draft Strategic Plan 2022–2026 for public comment.
A final rule that changes the definition of a service facility in the agency's chartering in field-of-membership requirements.

In addition, the NCUA Board was briefed on the performance of the National Credit Union Share Insurance Fund in the third quarter of 2021, along with the agency's modernized examination tools and response to the COVID-19 pandemic.

Fannie Mae

Inflation Remains Primary Macroeconomic Concern, as Fed Contemplates Additional Action

November 18, 2021

Inflation is a key forecast concern for the economy, according to the November 2021 commentary from the Fannie Mae Economic and Strategic Research Group.

U.S. Department of Labor

Unemployment Insurance Weekly Claims Report Update

November 18, 2021

In the week ending November 13, the advance figure for seasonally adjusted initial claims was 268,000, a decrease of 1,000 from the previous week's revised level. This is the lowest level for initial claims since March 14, 2020 when it was 256,000. The previous week's level was revised up by 2,000 from 267,000 to 269,000. The 4-week moving average was 272,750, a decrease of 5,750 from the previous week's revised average. This is the lowest level for this average since March 14, 2020 when it was 225,500. The previous week's average was revised up by 500 from 278,000 to 278,500.

Report

International

European Commission

Commission Sets Out Future of Temporary Framework to Support Economic Recovery in Context of COVID-19 Outbreak

November 18, 2021

The European Commission has decided to prolong the State Aid Temporary Framework until June 30, 2022 (currently set to expire by December 31, 2021). In order to further accelerate the recovery, the Commission has also decided to introduce two new measures to create direct incentives for forward-looking private investment and solvency support measures, for an additional limited period.

European Banking Authority

EBA and ESMA Consult on Framework for the Supervisory Review and Evaluation Process of Investment Firms

November 18, 2021

The European Banking Authority (EBA) and the European Securities and Markets Authority launched a public consultation on their Guidelines on common procedures and methodologies for the supervisory review and evaluation process. The EBA is also consulting on draft Regulatory Technical Standards on the additional own funds requirements that could be determined by competent authorities for investment firms. Both regulatory products are based on the Investment Firms Directive and aim at consistent supervisory practices with regard to the review and evaluation of investment firms. The consultations run until February 18, 2022.