PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Saturday, March 25, 2023
March 25, 2023
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Major Developments
Congress
U.S. Senate
Committee on Banking, Housing, and Urban Affairs
Banking Committee Republicans Probe Federal Reserve Supervision of SVB
March 24, 2023
Members of the Senate Banking Committee Republicans are demanding answers and seeking records from the Board of Governors of the Federal Reserve System (Federal Reserve) and the Federal Reserve Bank of San Francisco regarding their supervision of Silicon Valley Bank (SVB) in the leadup to its failure.
U.S. House of Representatives
Committee on Financial Services
Barr, Huizenga, Kim Demand Clarity on Federal Reserve Supervisory Activity Preceding Recent Bank Failures
March 24, 2023
The Chairman of the Subcommittee on Oversight and Investigations, Bill Huizenga (MI-04), the Chairman of the Subcommittee on Financial Institutions and Monetary Policy, Andy Barr (KY-06), and Congresswoman Young Kim (CA-40) sent a letter to Vice Chair for Supervision of the Federal Reserve Michael Barr and President and CEO of the Federal Reserve Bank of San Francisco Mary Daly expressing concern about supervisory activity conducted prior to the collapse of SVB.
Barr, Huizenga Demand Information on Financial Stability Oversight Council Meeting Following Recent Bank Failures
March 24, 2023
The Chairman of the Subcommittee on Oversight and Investigations, Bill Huizenga (MI-04), and the Chairman of the Subcommittee on Financial Institutions and Monetary Policy, Andy Barr (KY-06), sent letters to Financial Stability Oversight Council (FSOC) Chair Janet Yellen and Chair of the Council of Inspectors General on Financial Oversight, Richard Delmar, demanding information on a March 12 meeting of FSOC regarding turbulence in the banking system.
Members of the House Financial Services Committee Demand California and New York Regulators Provide Information on Supervisory Efforts Surrounding Recent Bank Failures
March 24, 2023
House Financial Services Committee members are demanding the California and New York state-level regulators that supervised SVB and Signature Bank provide information regarding their supervisory efforts, coordination with Federal regulators, and decision making regarding the failed banks.
Federal Agencies
U.S. Department of the Treasury
Remarks by U.S. Treasurer Chief Lynn Malerba at a White House and U.S. Mint Event Honoring the American Women Quarters Program
March 24, 2023
U.S. Treasurer Chief Lynn Malerba gave remarks at a White House and U.S. Mint Event honoring the American Women Quarters Program.
Treasury Targets Belarusian State-Owned Enterprises, Government Officials, and Lukashenka's Aircraft
March 24, 2023
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is designating three entities and nine individuals, and identifying one presidential aircraft, as blocked property.
Federal Reserve Board
Federal Reserve Board releases annual audited financial statements
March 24, 2023
The Federal Reserve on Friday released the 2022 combined annual audited financial statements for the Reserve Banks.
Federal Financial Institutions Examination Council Financial Statements as of and for the Years Ended December 31, 2022 and 2021, and Independent Auditors' Reports
March 24, 2023
The Office of Inspector General for the Federal Reserve released the Federal Financial Institutions Examination Council financial statements as of and for the years ended December 31, 2022 and 2021, and independent auditors' reports.
Federal Reserve publishes order denying application by Custodia Bank, Inc. to be supervised by the Federal Reserve
March 24, 2023
The Federal Reserve published its order denying the application by Custodia Bank, Inc. to be supervised by the Federal Reserve. The Federal Reserve previously announced its denial of the application, and its order is now available following a review for confidential information.
Federal Reserve Bank of New York
Underlying Inflation Gauge – March 2023
March 24, 2023
The Federal Reserve Bank of New York released the Underlying Inflation Gauge (UIG) for March 2023.
Blog: The New York Fed DSGE Model Forecast—March 2023
March 24, 2023
The Federal Reserve Bank of New York published a blog post entitled, "The New York Fed DSGE Model Forecast—March 2023."
Office of the Comptroller of the Currency
OCC Appoints Six New Members to Mutual Savings Association Advisory Committee
March 24, 2023
The Office of the Comptroller of the Currency (OCC) appointed six new members to its Mutual Savings Association Advisory Committee.
Commodity Futures Trading Commission
Remarks of Commissioner Summer K. Mersinger at the International Women of Blockchain 2023 Web3 and Metaverse Conference
March 24, 2023
Commodity Futures Trading Commission (CFTC) Commissioner Summer K. Mersinger gave remarks at the International Women of Blockchain 2023 Web3 and Metaverse Conference.
Financial Stability Oversight Council
Financial Stability Oversight Council Meeting
March 24, 2023
U.S. Secretary of the Treasury Janet L. Yellen convened a meeting of the FSOC.
Financial Crimes Enforcement Network
FinCEN Issues Initial Beneficial Ownership Information Reporting Guidance
March 24, 2023
The Financial Crimes Enforcement Network published its first set of guidance materials to aid the public, and in particular the small business community, in understanding upcoming beneficial ownership information reporting requirements taking effect on January 1, 2024.
Fannie Mae
Commentary: Banking System Instability May Prove Catalyst for Recession
March 24, 2023
The Fannie Mae Economic and Strategic Research Group released its monthly commentary which projects a modest recession to begin in the second half of 2023, compared to the previously forecasted second quarter of 2023.
International
European Commission
EU-UK relations: Joint Committee adopts new Windsor Framework arrangements and Partnership Council looks to the future
March 24, 2023
The tenth meeting of the EU-UK Joint Committee and the second meeting of the EU-UK Partnership Council took place in London. The Joint Committee adopted a decision laying down the arrangements relating to the Windsor Framework.
European Banking Authority
EBA consults on standards for supervisors assessing the new market risk internal models under the Fundamental Review of the Trading Book
March 24, 2023
The European Banking Authority launched a public consultation on its draft Regulatory Technical Standards on the assessment methodology under which competent authorities verify institutions' compliance with the requirements applicable to their internal models under the Fundamental Review of the Trading Book rules.
Bank of England
Market Participants Survey results - March 2023
March 24, 2023
The Bank of England released the results of the Market Participants Survey for March 2023.
Market Notice: Asset Purchase Facility: Gilt Sales
March 24, 2023
The Bank of England issued a market notice setting out the schedule for sales in Q2 2023 of gilts held in the Asset Purchase Facility for monetary policy purposes.
Bank of England Prudential Regulation Authority
UK Financial Conduct Authority
Joint HM Treasury and FCA statement on the Criminal Market Abuse Regime
March 24, 2023
HM Treasury and the Financial Conduct Authority have completed a review of the criminal market abuse regime, fulfilling the commitment made in the Economic Crime Plan 2019-22.
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 New York Fed Board of Directors; Rosa Gil Designated Deputy Chair (January 10, 2023)
- Pat Wang Appointed as a Class C Director to New York Fed 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)
- SEC 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 Trade Commission – Rostin Behnam (effective December 17, 2021)
- Commissioner Pham Announces Members of the CFTC's 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.