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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Saturday, March 12, 2022

March 12, 2022

FedACTion Task Force

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Federal Agencies

U.S. Department of the Treasury

Treasury Sanctions Additional Kremlin Elites, Leaders, Oligarchs, and their Family Members

March 11, 2022

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) issued a new round of sanctions targeting additional Russian and Kremlin elites, oligarchs, and Russia's political and national security leaders who have supported Russian President Vladimir Putin's brutal and illegal invasion of Ukraine.

Remarks by Secretary of the Treasury Janet L. Yellen on the Anniversary of the American Rescue Plan Act

March 11, 2022

Secretary of the Treasury Janet L. Yellen issued remarks in Denver, Colorado, highlighting the economic impacts of the American Rescue Plan on its one-year anniversary.

Federal Reserve Bank of New York

New York Fed Staff Issues Summary of Round Table on the End of New York's Eviction Moratorium

March 11, 2022

The Federal Reserve Bank of New York released an article summarizing takeways from a roundtable discussion held last month to understand the implications of the moratorium's expiration for tenants, property owners, and lenders in New York City and the region.

International

European Commission

Statement by President von der Leyen on the fourth package of restrictive measures against Russia

March 11, 2022

European Commission President von der Leyen issued a statement outlining the fourth package of restrictive measures to be adopted by the EU in response to Russia's invasion of Ukraine.

European Banking Authority

EBA calls on financial institutions to ensure compliance with sanctions against Russia following the invasion of Ukraine and to facilitate access to basic payment accounts for refugees

March 11, 2022

The EBA emphasized the need for European banks and other financial institutions to implement and comply with the restrictive measures adopted in response to the Ukrainian crisis. Financial institutions are required to assess the adequacy and effectiveness of internal controls and governance to ensure compliance with these measures and to adapt or enhance systems and processes as appropriate.

Bank of England

Joint statement from UK Financial Regulation Authorities on Sanctions and the Cryptoasset Sector

March 11, 2022

The Office of Financial Sanctions Implementation (OFSI), the Financial Conduct Authority (FCA) and the Bank of England have issued a joint statement reiterating that all UK financial services firms, including the cryptoasset sector, are expected to comply with sanctions against Russia and Belarus.

Staff Working Paper: Margin procyclicality and the collateral cycle

March 11, 2022

Bank of England staff issued a working paper using supervisory data from UK central counterparties (CCPs) to study a collateral cycle in which market participants raise liquidity in the repo markets to meet CCPs margin calls, before CCPs reinvest the liquidity through reverse repos as well as bond purchases.

Bank of England Prudential Regulation Authority

Prudential Regulation Authority Publishes Policy Statement on Operational Resilience and Operational Continuity in Resolution: CRR firms, Solvency II firms, and Financial Holding Companies (for Operational Resilience)

March 11, 2022

The Prudential Regulation Authority issued a Policy Statement providing feedback to responses to Consultation Paper (CP) 21/21 'Operational Resilience and Operational Continuity in Resolution: CRR firms, Solvency II firms, and Financial Holding Companies (for Operational Resilience)'. It also contains the PRA's final policy.

UK Financial Conduct Authority

FCA Issues Portfolio Letters Outlining Risks, Expectations and Strategy

March 11, 2022

The Financial Conduct Authority has issued portfolio letters to Non-Bank (Mortgage) Lenders, Retail Mortgage Lenders and Building Societies outlining current thinking on risks of harm over the next two years, the Authority's expectations regarding mitigating these risks to consumers, and updates on its strategy.

Administration Changes

Vacancies

Federal Reserve Board

  • Vice Chair for Supervision – Sarah Bloom Raskin nominated January 14, 2022 (nomination hearing held on February 3, 2022)
  • Governor – Lisa Cook nominated January 14, 2022
    (nomination hearing held on February 3, 2022)
  • Governor – Phillip Jefferson, nominated January 14, 2022
    (nomination hearing held on February 3, 2022)

Federal Deposit Insurance Corporation

  • Chair – Vacant (Martin Gruenberg serves as Acting Chair)
  • Vice Chairman

Office of the Comptroller of the Currency

  • Comptroller – Vacant (Michael Hsu serves as Acting Comptroller)

Commodity Futures Commission

  • Three (3) Commissioner Vacancies

Appointments/Confirmation Hearings

U.S. Department of the Treasury - Janet Yellen (effective January 26, 2021)

Federal Reserve Board

Federal Reserve Bank of New York

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

Securities and Exchange Commission - Gary Gensler (effective April 17, 2021)

Small Business Administration - Isabella Casillas Guzman (effective March 16, 2021)

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

Financial Crimes Enforcement Network

National Credit Union Administration - Todd M. Harper

U.S. Department of Housing and Urban Development - Marcia Fudge (effective March 10, 2021)

Federal Housing Finance Agency – Sandra L. Thompson

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.