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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Thursday, February 10, 2022

February 10, 2022

FedACTion Task Force

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Congress

U.S. Senate

Committee on Banking, Housing, and Urban Affairs

Senator Brown Hosts Renters From Across the Country for Listening Session on How Big Money Landlords Are Changing the Housing Market

February 9, 2022

U.S. Senator Sherrod Brown (D-OH), Chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, hosted renters from across the country for a listening session.

Federal Agencies

Federal Reserve Bank of Boston

Federal Reserve Bank of Boston Names Dr. Susan Collins as Its Next President and Chief Executive Officer

February 9, 2022

The Federal Reserve Bank of Boston announced that Dr. Susan M. Collins will be its next president, CEO, and participant in national monetary policymaking on the Federal Open Market Committee.

Federal Deposit Insurance Corporation

FDIC Announces Chief of Staff, COO, and General Counsel Appointments

February 9, 2022

The Federal Deposit Insurance Corporation (FDIC) Board of Directors has approved the selection of three new corporate officers:

  • Kymberly Copa as Deputy to the Acting Chairman and Chief of Staff;
  • Daniel Bendler as Deputy to the Acting Chairman and Chief Operating Officer; and
  • Harrel Pettway to the position of General Counsel.
  • Press Release

Office of the Comptroller of the Currency

Statement: Acting Comptroller Issues Statement on Court Decision Regarding OCC Regulation Addressing the so-called 'Madden' Rule

February 9, 2022

Acting Comptroller of the Currency Michael J. Hsu issued a statement regarding the decision issued by the District Court for the Northern District of California in the litigation challenging the Office of the Comptroller of the Currency rule to clarify the permissible interest on transferred loans.

Securities and Exchange Commission

SEC Proposes to Enhance Private Fund Investor Protection

February 9, 2022

The Securities and Exchange Commission voted to propose new rules and amendments under the Investment Advisers Act of 1940 to enhance the regulation of private fund advisers and to protect private fund investors by increasing transparency, competition and efficiency in the $18 trillion marketplace.

SEC Proposes Cybersecurity Risk Management Rules and Amendments for Registered Investment Advisers and Funds

February 9, 2022

The Securities and Exchange Commission voted to propose rules related to cybersecurity risk management for registered investment advisers, and registered investment companies and business development companies, as well as amendments to certain rules that govern investment adviser and fund disclosures.

SEC Issues Proposal to Reduce Risks in Clearance and Settlement

February 9, 2022

The Securities and Exchange Commission voted to propose rule changes to reduce risks in the clearance and settlement of securities, including by shortening the standard settlement cycle for most broker-dealer transactions in securities from two business days after the trade date to one business day after the trade date. The proposed changes are designed to reduce the credit, market, and liquidity risks in securities transactions faced by market participants and U.S. investors.

Commodity Futures Trading Commission

Statement: Chairman Rostin Behnam Regarding "Examining Digital Assets: Risks, Regulation, and Innovation"

February 9, 2022

Commodity Futures Trading Commission Chairman Rostin Behnam gave testimony regarding "Examining Digital Assets: Risks, Regulation, and Innovation."

FINRA

Report: FINRA Publishes 2022 Report on Exam and Risk Monitoring Program

February 9, 2022

The Financial Industry Regulatory Authority (FINRA) published its 2022 Report on FINRA's Examination and Risk Monitoring Program to provide insights from FINRA's oversight programs to FINRA member firms. The 70-page Report covers 21 different topics relevant to an evolving securities industry.

Federal Housing Finance Agency

FHFA Requests Input on Strategic Plan for Fiscal Years 2022-2026

February 9, 2022

The Federal Housing Finance Agency (FHFA) requests input on its Draft Strategic Plan, which outlines the FHFA's priorities for the coming years as regulator of the Federal Home Loan Bank System and as regulator and conservator of Fannie Mae and Freddie Mac.

Ginnie Mae

Ginnie Mae Publishes LIBOR Index Transition Reference Guide

February 9, 2022

Ginnie Mae published a LIBOR Index Transition Reference Guide to assist stakeholders in preparing for the transition from the London Interbank Offered Rate (LIBOR) on the LIBOR index cessation date of June 30, 2023. The guide will serve as an information resource for affected parties.

International

European Commission

European Innovation Council: Biggest Annual Funding Opportunities for Innovators to Scale Up

February 9, 2022

The European Commission adopted the 2022 work program of the European Innovation Council. It opens funding opportunities worth over €1.7 billion in 2022 for breakthrough innovators to scale up and create new markets, for example in quantum computing, new generation batteries and gene therapy. Launched in March 2021 as a major novelty of the Horizon Europe program, the European Innovation Council has a total budget of over €10 billion between 2021 and 2027.

Bank of England

Bank of England launches a second round of the Biennial Exploratory Scenario (BES) exercise on financial risks from climate change

February 9, 2022

Today the Bank of England (Bank) launches the second round of the Biennial Exploratory Scenario (BES) exercise on financial risks from climate change. The objective of the Climate BES is to explore the financial risks posed by climate change for the largest UK banks and insurers (participants). This is in line with the plan for the Climate BES set out in June 2021. All first round Climate BES participants are taking part in the second round. Further background on the Climate BES can be found in the Key elements documents of the 2021 Biennial Exploratory Scenario.

Finalizing LIBOR transition – Achievements in Sterling Markets and What Remains to be Done

February 9, 2022

A critical step in the necessary shift in global interest rate markets towards more robust foundations was reached on December 31, 2021, as most LIBOR settings were published for the final time. Sterling markets navigated this transition on time and with minimal disruption, supporting global transition efforts towards alternative risk-free reference rates.

Speech: Monetary Policy with a Steady Hand

February 9, 2022

Chief Economist and Executor Director of Monetary Analysis of the Bank of England Huw Pill gave a speech titled, "Monetary Policy with a Steady Hand," at the Society of Professional Economists Conference.

Speech: Learning from the Dash for Cash – Findings and Next Steps for Margining Practices

February 9, 2022

Deputy Governor of Financial Stability of the Bank of England Jon Cunliffe gave the keynote address titled, "Learning from the Dash for Cash – Findings and Next Steps for Margining Practices," at the Future Industry Association and Securities Industry and Financial Markets Association Asset Management Derivatives Forum 2022.

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.