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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Monday December 23

December 23, 2024

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Major Developments

Bank of England
Prudential Regulation Authority
Financial Conduct Authority
Payment Systems Regulator

Payment Systems Memorandum of Understanding

December 20, 2024

The Bank of England, the Financial Conduct Authority, the Prudential Regulation Authority and the Payment Systems Regulator have a Memorandum of Understanding (MoU) which sets out the high-level framework that we use to cooperate with one another in relation to payment systems in the U.K.

 

Federal Agencies

Federal Reserve Board

Working Paper: Measuring the Euro Area Output Gap

December 20, 2024

The Federal Reserve Board published a working paper entitled “Measuring the Euro Area Output Gap.”

 

Working Paper: Hidden Risk

December 20, 2024

The Federal Reserve Board published a working paper entitled “Hidden Risk.”

 

Working Paper: Life-Cycle Portfolio Choices and Heterogeneous Stock Market Expectations

December 20, 2024

The Federal Reserve Board published a working paper entitled “Life-Cycle Portfolio Choices and Heterogeneous Stock Market Expectations.”

 

Working Paper: A Market Interpretation of Treatment Effects

December 20, 2024

The Federal Reserve Board published a working paper entitled “A Market Interpretation of Treatment Effects.”

 

Paper: Measured Inflation and the New-Keynesian Model

December 20, 2024

The Federal Reserve Board published a working paper entitled “Measured Inflation and the New-Keynesian Model.”

 

Federal Reserve Bank of New York

Staff Report: Repo Intermediation and Central Clearing: An Analysis of Sponsored Repo

December 20, 2024

The Federal Reserve Bank of New York published a staff report entitled “Repo Intermediation and Central Clearing: An Analysis of Sponsored Repo.”

 

Blog: The New York Fed DSGE Model Forecast—December 2024

December 20, 2024

The Federal Reserve Board published a Liberty Street Economics blog post entitled “The New York Fed DSGE Model Forecast—December 2024.”

 

Blog: Anatomy of the Bank Runs in March 2023

December 20, 2024

The Federal Reserve Board published a Liberty Street Economics blog post entitled “Anatomy of the Bank Runs in March 2023.”

 

Office of the Comptroller of the Currency

OCC Issues Annual Report for 2024

December 20, 2024

The Office of the Comptroller of the Currency published its 2024 Annual Report. 

 

Securities and Exchange Commission

SEC Adopts Rule Amendments to the Broker-Dealer Customer Protection Rule

December 20, 2024

The Securities and Exchange Commission adopted amendments to Rule 15c3-3 (the customer protection rule) to require certain broker-dealers to increase the frequency with which they perform computations of the net cash they owe to customers and other broker-dealers (known as PAB account holders) from weekly to daily. 

 

Announcement Regarding Pending Registration Statements and Offering Statements

December 20, 2024

The Securities and Exchange Commission’s Division of Corporation Finance and Division of Investment Management issued an announcement regarding pending registration statements and offering statements.

 

Commodity Futures Trading Commission

CFTC Approves Final Rule on Margin Adequacy, Treatment of Separate Accounts of a Customer by Futures Commission Merchants

December 20, 2024

The Commodity Futures Trading Commission announced a final rule to implement requirements for futures commission merchants related to margin adequacy and the treatment of separate accounts of a customer. 

 

FINRA

Regulatory Notice: FINRA Requests Comment on Proposed Changes to Corporate Financing Rules

December 20, 2024

FINRA is seeking comment on proposed amendments to FINRA Rules 5110 (Corporate Financing Rule—Underwriting Terms and Arrangements), 5121 (Public Offerings of Securities With Conflicts of Interest) and 5123 (Private Placements of Securities) to make substantive, organizational and terminology changes to the rules. 

 

Federal Housing Finance Agency

FHFA Releases 2025 Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions

December 20, 2024

The Federal Housing Finance Agency released the 2025 Scorecard for Fannie Mae and Freddie Mac, establishing an array of objectives for them to operate safely and soundly, further develop risk management frameworks and support market improvements in housing supply and affordability, among other steps. 

 

International

Bank of England

Market Participants Survey results - December 2024

December 20, 2024

The Bank of England published the results of the December 2024 Market Participants Survey.

 

Market Notice: Asset Purchase Facility: Gilt Sales – December 2024

December 20, 2024

The Bank of England released a market notice setting out the schedule for sales in Q1 2025 of gilts held in the Asset Purchase Facility (APF) for monetary policy purposes.

 

Minutes of the UK Money Markets Code Sub-Committee – November 2024

December 20, 2024

The Bank of England released the minutes of the UK Money Markets Sub-Committee meeting held November 26, 2024.

 

Working Paper: The effect of mortgage brokers on banks' business models

December 20, 2024

The Bank of England published a staff working paper entitled “The effect of mortgage brokers on banks' business models.”

 

Working Paper: When refinancing meets monetary tightening: heterogeneous impacts on spending and debt via mortgage modifications

December 20, 2024

The Bank of England published a staff working paper entitled “When refinancing meets monetary tightening: heterogeneous impacts on spending and debt via mortgage modifications.”

 

Working Paper: Monetary policy and sentiment-driven fluctuations

December 20, 2024

The Bank of England published a staff working paper entitled “Monetary policy and sentiment-driven fluctuations.”

 

Bank of England Prudential Regulation Authority

Restatement of Solvency II assimilated law: correction to standard formula mass lapse life underwriting risk rule in PS15/24

December 20, 2024

The Prudential Regulation Authority released a restatement of Solvency II assimilated law to correct the standard formula mass laps life underwriting risk rule in PS15/24.

 

Administration Changes

Vacancies
Appointments/Confirmation Hearings

U.S. Department of the Treasury – Scott Bessent (nominated November 2024); Janet Yellen (effective January 26, 2021)

Federal Reserve Board – Jerome H. Powell (effective May 23, 2022)

  • Vice Chair Phillip N Jefferson (sworn in September 13, 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 September 13, 2022)
  • Governor Adriana D. Kugler (sworn in September 13, 2023)

Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)

Federal Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)

Federal Deposit Insurance Corporation – Martin Gruenberg (resigning effective January 19, 2025)

  • 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)

Office of the Comptroller of the Currency – Michael Hsu (acting Comptroller, effective May 10, 2021)

Securities and Exchange Commission – Paul Atkins (nominated December 2024); Gary Gensler (resigning January 20, 2025)

Commodity Futures Trading Commission – Rostin Behnam (effective December 17, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (effective October 12, 2021)

National Credit Union Administration – Todd M. Harper (effective January 20, 2021)

Small Business Administration – Kelly Loeffler (nominated December 2024); Isabella Casillas Guzman (effective March 16, 2021)

U.S. Department of Housing and Urban Development – Scott Turner (nominated November 2024); Marcia Fudge (resigned March 11, 2024, effective March 22, 2024)

Federal Housing Finance Agency – Sandra L. Thompson (effective June 22, 2022)

U.S. Department of Education – Linda McMahon (nominated November 2024); Dr. Miguel Cardona (effective March 2, 2021)

Financial Crimes Enforcement Network – Andrea Gacki (effective July 13, 2023)

 

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