PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Saturday, December 12, 2020
December 12, 2020
FedACTion Task Force
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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 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.
Federal Agencies
Department of the Treasury
Mnuchin Reports to COVID-19 Congressional Oversight Commission on National Security Loan Program
December 10, 2020
Steven T. Mnuchin, Secretary of the U.S. Department of the Treasury (Treasury), delivered a statement to the COVID-19 Congressional Oversight Commission (Commission) regarding the National Security Loan Program (Program), which was created by the CARES Act. Mnuchin told the Commission that to date, Treasury has approved 11 loans, totaling nearly $736 million, under the Program; that many of the companies Treasury initially expected to take part in the Program were able to raise funds in the capital markets, leaving most of the available loan funds unused; and that Mnuchin was, therefore, urging Congress to re-allocate these funds to provide relief for aviation industry workers.
Federal Reserve Board
Vice Chair Quarles Delivers Speech on Bank Supervision
December 11, 2020
Randal K. Quarles, Vice Chair for Supervision of the Board of Governors of the Federal Reserve System (Federal Reserve Board), delivered a speech entitled “The Eye of Providence: Thoughts on the Evolution of Bank Supervision”, at the Bank Supervision: Past, Present, and Future conference organized by the Federal Reserve Board, Harvard Law School, and Wharton School.
Federal Deposit Insurance Corporation
FDIC Chairman McWilliams Delivers Speech on Bank Supervision
December 11, 2020
Jelena McWilliams, Chair of the Federal Deposit Insurance Corporation, delivered a speech entitled “From Principles to Practice: Improving and Modernizing Bank Supervision”, at the Bank Supervision: Past, Present, and Future conference organized by the Federal Reserve Board, Harvard Law School, and Wharton School.
International
European Banking Authority
EBA Publishes Annual Risk Assessment of European Banking System
December 11, 2020
The European Banking Authority published its annual Risk Assessment (Report) of the European banking system. According to the Report, despite the COVID-19 shock, European banks have maintained solid capital and liquidity ratios and have increased their lending to the real economy. According to the Report, however, economic uncertainty persists, profitability is at record low levels and several early signs point to a deterioration in asset quality.
Bank of England
Bank Releases December 2020 Financial Stability Report
December 11, 2020
The Bank of England released its Financial Stability Report (Report) for December 2020. The Report sets out the Bank’s Financial Policy Committee’s view on the stability of the UK financial system, and what it is doing to remove or reduce any risks to the system. According to the Report, there are a number of risks ahead, including further disruption from COVID-19, and the transition to new trading arrangements between the UK and the European Union.
UK Financial Conduct Authority
FCA Issues Draft Guidance on Judging Presence of COVID-19
December 11, 2020
The UK Financial Conduct Authority (FCA) issued draft guidance to assist policyholders, insurers and insurance intermediaries in determining how the presence of COVID-19 in a particular area can be proved. The FCA stated it is launching the consultation so that it will be in a position to issue it as soon as possible, following a potential judgment of the Supreme Court. The draft guidance builds on the High Court’s judgment, and is intended to ensure that the process of proving the presence of COVID-19 is made as simple as possible for eligible policyholders. The launch of the consultation will enable policyholders to receive claim payments as early as possible, should the Supreme Court uphold the High Court’s decision that relevant policies potentially provide cover in response to the COVID-19 pandemic.