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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Thursday, February 3, 2022

February 03, 2022

FedACTion Task Force

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Congress

U.S. Senate

Committee on Banking, Housing, and Urban Affairs

February 3, 2022

The U.S. Senate's Committee on Banking, Housing, and Urban Affairs will hold a nomination hearing for Sarah Bloom Raskin to become Vice Chairman for Supervision and a Member of the Board of Governors of the Federal Reserve System; Dr. Lisa DeNell Cook, to be a Member of the Board of Governors of the Federal Reserve System; and Dr. Philip Nathan Jefferson to be a Member of the Board of Governors of the Federal Reserve System.

Committee on Small Business and Entrepreneurship

Senator Cardin Looks to SBA Entrepreneurial Development Programs to Drive Growth

February 1, 2022

The U.S. Senate Committee on Small Business and Entrepreneurship convened a hearing to examine the U.S. Small Business Administration Office of Entrepreneurial Development, which manages the Small Business Development Centers Program, the Women's Business Centers Program, the Community Navigator Pilot Program, and SCORE. The hearing came amid a historic boom in new business formation, with American entrepreneurs registering 5.4 million new business applications in 2021—the highest total on record.

U.S. House of Representatives

Committee on Financial Services

Subcommittee Holds Virtual Hearing on Homelessness Challenges

February 2, 2022

The U.S. House Committee on Financial Services' Subcommittee on Housing, Community Development and Insurance held a virtual hearing entitled, "Housing America: Addressing Challenges in Serving People Experiencing Homelessness."

Federal Agencies

U.S. Department of the Treasury

Treasury Releases Quarterly Refunding Statement

February 2, 2022

The U.S. Department of the Treasury (Treasury) released the Quarterly Refunding Statement (Refunding Statement) of Deputy Assistant Secretary for Federal Finance Brian Smith. Included in the Refunding Statement is Treasury's announcement that it is offering $110 billion of Treasury securities to refund approximately $54.8 billion of privately-held Treasury notes and bonds maturing on February 15, 2022. The issuance will raise new cash of approximately $55.2 billion.

Treasury Releases Report to the Secretary from the Treasury Borrowing Advisory Committee

February 2, 2022

The U.S. Department of the Treasury (Treasury) released the Report to the Secretary of the Treasury from the Treasury Borrowing Advisory Committee. The report states that economic activity rose at a faster pace in the fourth quarter of 2021, in part reflecting recovery from the impact of the COVID-19 Delta variant in the third quarter of 2021; and real GDP grew at a 6.9% annualized rate, above consensus expectations, though this reflected a 4.9pp contribution from inventory accumulation.

Treasury Deputy Secretary Meets with National Bankers Association

February 2, 2022

Wally Adeyemo, Deputy Secretary of the U.S. Department of the Treasury, met with the National Bankers Association to discuss the Biden Administration's investment of $8.7 billion in low- and moderate-income community financial institutions through the Emergency Capital Investment Program.

Federal Reserve Board

Federal Reserve Board Releases Paper on the Economics of Internal Migration

February 2, 2022

The Board of Governors of the Federal Reserve System, as part of its Finance and Economics Discussion series, released a paper entitled "The Economics of Internal Migration: Advances and Policy Questions."

Federal Reserve Bank of New York

Blog Post: Housing Returns in Big and Small Cities

February 2, 2022

The Federal Reserve Bank of New York published a blog post entitled "Housing Returns in Big and Small Cities" on its Liberty Street Economics blog. The authors present new and potentially surprising insights from research comparing long-run returns on residential real estate in a nation's largest cities to those experienced in the rest of the country, covering the U.S. and fourteen other advanced economies over the past century.

Federal Deposit Insurance Corporation

FDIC Releases Paper on Bank Technology and COVID-19

February 2, 2022

The Federal Deposit Insurance Corporation's Center for Financial Research released a paper entitled "Bank Technology and the COVID-19 Pandemic." The authors examine how banks' technological investments affected their ability to maintain or expand their business in the unprecedented economic recession associated with the COVID-19 pandemic.

Office of the Comptroller of the Currency

OCC Releases Bulletin on State Community Reinvestment Laws

February 2, 2022

The Office of the Comptroller of the Currency (OCC) released OCC Bulletin 2022-2, which addresses the OCC's processes for considering input from state banking commissioners regarding national banks' performance under state community reinvestment laws, including implementation of community reinvestment-related provisions of the Riegle-Neal Interstate Banking and Branching Efficiency Act. The bulletin also addresses expectations regarding the handling of consumer complaints that state officials refer to national banks and federal savings associations and state referrals of complaints to the OCC.

Consumer Financial Protection Bureau

Blog Post: The Hidden Cost of Junk Fees

February 2, 2022

The Consumer Financial Protection Bureau published a blog post entitled "The Hidden Cost of Junk Fees."

National Credit Union Administration

NCUA Releases Regulatory Alert on Home Mortgage Disclosure Act Data Collection Requirements for Calendar Year 2022

February 2, 2022

The National Credit Union Administration released a Regulatory Alert to federally insured credit unions, alerting them that credit unions that make residential mortgage loans and meet certain criteria must comply with the Consumer Financial Protection Bureau's Regulation C, which implements the Home Mortgage Disclosure Act.

International

European Banking Authority

EBA Publishes Technical Standards Listing Advanced Economy Countries for Market Risk Own Funds Requirements

February 2, 2022

The European Banking Authority (EBA) published its final draft Regulatory Technical Standards (RTS) on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach. The RTS are part of the phase 3 deliverables of the EBA roadmap for the new market and counterparty credit risk approaches.

Bank of England

Bank Releases Minutes of November 2021 Securities Lending Committee Meeting

February 2, 2022

The Bank of England (Bank) released the Minutes from the November 2021 meeting of the Bank's Securities Lending Committee, a forum for market participants and authorities to discuss the UK securities lending market.

Administration Changes

Vacancies

Federal Reserve Board

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

Federal Deposit Insurance Corporation

  • Chair – Martin Gruenberg will become Acting Chair as of February 1, 2022
  • 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.