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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Thursday, April 22, 2021

April 22, 2021

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Administration Changes

Appointments/Confirmation Hearings

Department of the Treasury – Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (Nominee)

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

Small Business Administration – Isabel Guzman (effective March 16, 2021)

Commodity Futures Trade Commission

Financial Crimes Enforcement Network

National Credit Union Administration – Todd M. Harper

Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Department of Education – Dr. Miguel Cardona (effective March 2, 2011)

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 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.

U.S. Senate

Committee on Small Business and Entrepreneurship

Chairman Cardin and Other Senators Introduce Bipartisan Bill to Retroactively Extend PPP Benefits to Farmers, Ranchers and Sole Proprietors

April 20, 2021

U.S. Senate Committee on Small Business & Entrepreneurship Chair Ben Cardin (D-MD) and U.S. Senators James Lankford (R-OK), Susan Collins (R-ME), Angus King (I-ME), Tammy Baldwin (D-WI), Rob Portman (R-OH), and Roger Marshall (R-KS) introduced bipartisan legislation to extend more relief to farmers, ranchers, and sole-proprietors through changes to the Paycheck Protection Program (PPP). The PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act would make critical changes to PPP loan calculations and allow small businesses to apply for increased benefits retroactively.

Senators Cardin and Cantwell Lead Introduction of Legislation to Expand and Make Permanent Minority Business Development Agency

April 21, 2021

U.S. Senate Committee on Small Business and Entrepreneurship Chair Ben Cardin (D-MD), U.S. Senate Committee on Commerce Chair Maria Cantwell (D-WA), Senate Majority Leader Chuck Schumer (D-NY), and other U.S. Senators have introduced the Minority Business Resiliency Act of 2021. The bill would make permanent and expand the reach of the Minority Business Development Agency (MBDA), which was created by an Executive Order in 1969. The bill would also place MBDA regional offices in more communities, increase the MBDA’s grant making capacity, and create a Senate-confirmed Assistant Secretary of Commerce for Minority Business Development.

U.S. House of Representatives

Committee on Financial Services

House Financial Services Committee Passes Bill to Require the Federal Reserve to Address Racial and Economic Equity

April 21, 2021

The U.S. House Committee on Financial Services passed legislation introduced by Chairwoman Maxine Waters (D-CA) to require the Board of Governors of the Federal Reserve System (Federal Reserve) to use its existing authorities to close racial employment and wage gaps and report on how the gaps change over time. Senator Elizabeth Warren (D-MA) and Senator Kirsten Gillibrand (D-NY) introduced companion legislation in the Senate to address the inequities that exist within the Federal Reserve.

Reauthorization of Task Forces on Financial Technology and Artificial Intelligence for 117th Congress

April 21, 2021

Congresswoman Maxine Waters (D-CA), Chairwoman of the U.S. House Financial Services Committee, announced the reauthorization of the Financial Technology and Artificial Intelligence Task Forces.

Federal Agencies

U.S. Department of the Treasury

Deputy Secretary of the Treasury Wally Adeyemo Conducts Roundtable Discussion with Securities Industry and Financial Markets Association Board of Directors

April 21, 2021

Deputy Secretary of the U.S. Department of the Treasury Wally Adeyemo met virtually with members of the Securities Industry and Financial Markets Association (SIFMA) Board of Directors for a roundtable discussion that addressed the importance of establishing strong public-private partnerships to address the challenges facing Americans.

American Rescue Plan Tax Credits Available to Small Employers to Provide Paid Leave to Employees Receiving COVID-19 Vaccines

April 21, 2021

The U.S. Department of the Treasury and the Internal Revenue Service announced further details of tax credits available under the American Rescue Plan to help small businesses, including providing paid leave for employees receiving COVID-19 vaccinations.

Secretary of the Treasury Janet L. Yellen’s Remarks to the Institute of International Finance on Climate Related Matters and Green Infrastructure

April 21, 2021

Secretary of the U.S. Department of the Treasury Janet L. Yellen gave remarks to the Institute of International Finance.

Federal Reserve Bank of Boston

Rental Affordability and COVID-19 in Rural New England

April 21, 2021

The Federal Reserve Bank of Boston released a brief titled “Rental Affordability and COVID-19 in Rural New England.”

Commodity Futures Trading Commission

Clearing-Up a Few Things about Clearing

April 19, 2021

Dawn D. Stump, Commissioner at the Commodity Futures Trading Commission, gave remarks at the World Federation of Exchanges’ Clearing and Derivatives Conference 2021 titled “Clearing Up a Few Things about Clearing.”

FINRA

FINRA Notice on the Use of Pre-dispute Arbitration Agreements for Customer Accounts

April 21, 2021

The Financial Industry Regulatory Authority (FINRA) issued a regulatory notice reminding member firms about requirements when using pre-dispute arbitration agreements for customer accounts. According to the notice, when member firms use mandatory arbitration clauses in their customer agreements, FINRA rules establish minimum disclosure requirements regarding the use of such clauses and prohibit pre-dispute arbitration agreements from including conditions that, among other things, limit or contradict FINRA rules.

U.S. Department of Housing and Urban Development/Federal Housing Administration

HUD Secretary Fudge Testimony at House Appropriations Subcommittee Hearing on President’s FY22 Discretionary Funding Request

April 21, 2021

U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge testified before the House Appropriations Subcommittee on Transportation-Housing and Urban Development on President Biden’s Fiscal Year 2022 discretionary funding request for HUD.

Federal Housing Finance Agency

FHFA Announces Extension of COVID-Related Loan Flexibilities

April 21, 2021

The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will extend some temporary loan origination flexibilities until May 31, 2021. All temporary flexibilities were originally set to expire on April 30, 2021.

Freddie Mac

Freddie Mac Multifamily Impact Bonds Report Details Benefits of $5 Billion of Issuance in Green, Social and Sustainability Investments

April 21, 2021

Freddie Mac Multifamily released a report detailing the impact of its more than $5 billion in Green, Social and Sustainability Bonds issuances since 2019. The Impact Bond series offers investors an opportunity to support multifamily properties that address persistent housing challenges and environmental issues. Freddie Mac Multifamily issued $3.3 billion in Green Bonds, $874 million in Social Bonds and $971 million in Sustainability Bonds through December 31st, 2020.

International

Bank of England

The Bank of England and Fintech: Public Support for Private Innovation

April 21, 2021

Dave Ramsden, Deputy Governor, Markets and Banking, at the Bank of England (BoE), gave a speech at UK Fintech Week on how the BoE supports the safe development of fintech services in the UK.

Bank of England Publishes Updated UK Money Markets Code

April 21, 2021

The Bank of England published an updated UK Money Markets Code, which includes changes in the following areas: (i) diversity and inclusion; (ii) working from home; (iii) environmental, social and governance criteria; (iv) electronic trading; and (v) trade settlement discipline.

Meeting Varied People

April 21, 2021

Andrew Bailey, Governor at the Bank of England, gave a speech titled “Meeting Varied People” and highlighted the importance of engaging a more diverse range of people and institutions in the financial sector.