PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Monday, March 20, 2023
March 20, 2023
FedACTion Task Force
Subscribe to PH FedACTion: Financial Regulatory Updates
PH Fintech Tracker on Executive Order for Digital Assets
Major Developments
FINMA approves merger of UBS and Credit Suisse and to provide additional liquidity
March 19, 2023
The Swiss Financial Market Supervisory Authority FINMA has approved the takeover of Credit Suisse by UBS. The Swiss National Bank (SNB) is also granting the merged bank further liquidity assistance that is backed by a default guarantee by the Swiss Confederation.
- FINMA Press Release
- Federal Council Press Release
- SNB Press Release
- Bank of England Statement
- FCA Statement
- Treasury Secretary Yellen and FRB Chair Powell Joint Statement
FDIC sells assets and liabilities of Signature Bank
March 19, 2023
The Federal Deposit Insurance Corporation (FDIC) entered into a purchase and assumption agreement for substantially all deposits and certain loan portfolios of Signature Bridge Bank, National Association, by Flagstar Bank, National Association. Approximately $4 billion in deposits related to the former Signature Bank's digital banking business were not assumed by Flagstar Bank and are being paid out by the FDIC.
Federal Reserve Board
Coordinated central bank action to enhance the provision of U.S. dollar liquidity
March 19, 2023
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Board of Governors of the Federal Reserve System (Federal Reserve), and the SNB announced a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.
Bank of England
Market Notice: Enhancements to the provision of US dollar repo operations
March 19, 2023
The Bank of England, in coordination with other central banks, has decided to enhance the provision of liquidity via the standing US dollar liquidity swap line arrangements.
Congress
U.S. House of Representatives
Committee on Financial Services
Government Accountability Office Urged to Conduct Immediate Study and Investigation into Recent Bank Failures
March 17, 2023
Leadership of the House Financial Services Committee sent a letter to the Government and Accountability Office (GAO) calling on the GAO to begin a study and investigation into the recent collapse of Silicon Valley Bank (SVB) and Signature Bank.
First Hearing on Silicon Valley Bank and Signature Bank Failures to be held March 29, 2023
March 19, 2023
Leadership of the House Financial Services Committee announced a bipartisan hearing with federal financial regulators in response to the failures of SVB and Signature Bank to be held on March 29, 2023.
FDIC urged to Ensure California Communities Remain Supported Through Silicon Valley Bank's Housing, Community Reinvestment Plan
March 18, 2023
Congresswoman Maxine Waters (D-CA), Ranking Member of the House Financial Services Committee, sent a letter to the FDIC urging the agency take steps to ensure the continued implementation of the SVB Community Benefits Plan – which SVB agreed to in 2021 and is aimed at providing housing, small business, and other community development support to communities in California and Massachusetts – despite the bank's collapse.
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 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 Phillip N Jefferson (sworn in May 23, 2022)
- Governor Lisa D. Cook (sworn in May 23, 2022)
- Federal Reserve Board announces appointment of Joshua Gallin as Secretary of the Federal Open Market Committee (February 2, 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)
- New York Fed names Roberto Perli SOMA Manager (February 2, 2023)
Federal Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)
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)
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)
- Securities and Exchange Commission 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)
Commodity Futures Trading Commission – Rostin Behnam (effective December 17, 2021)
- Commissioner Pham announces members of the Commodity Futures Trading Commission's (CFTC) 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)
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.