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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Thursday, March 30, 2023

March 30, 2023

FedACTion Task Force

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PH Fintech Tracker on Executive Order for Digital Assets

Congress

U.S. Senate

Committee on Banking, Housing, and Urban Affairs

Senators Introduce Bipartisan Bill to Claw Back Compensation From Failed Bank Executives

March 29, 2023

U.S. Senators Elizabeth Warren (D-Mass.) and Catherine Cortez Masto (D-Nev.), both members of the Senate Banking, Housing, and Urban Affairs Committee, Josh Hawley (R-Mo.), and Mike Braun (R-Ind.) introduced the Failed Bank Executives Clawback Act – bipartisan legislation that would require that, in the event of a bank failure, federal regulators claw back all or part of the compensation received by bank executive in the five-year period preceding the failure.

U.S. House of Representatives

Committee on Financial Services

Hearing: The Federal Regulators' Response to Recent Bank Failures

March 29, 2023

The U.S. House Committee on Financial Services held a hearing entitled, "The Federal Regulators' Response to Recent Bank Failures." The Committee heard testimony from Federal Deposit Insurance Corporation (FDIC) Chair Martin J. Gruenberg, Board of Governors of the Federal Reserve System (Federal Reserve) Vice Chair for Supervision Michael S. Barr, and Undersecretary for Domestic Finance Nellie Liang.

Federal Agencies

U.S. Department of the Treasury

Testimony of Secretary of the Treasury Janet L. Yellen Before the State, Foreign Operations, and Related Programs Appropriations Subcommittee, U.S. House

March 29, 2023

Secretary of the Treasury Janet L. Yellen testified before the U.S. House Committee on Appropriations Subcommittee on State, Foreign Operations, and Related Programs Appropriations.

Federal Reserve Board

Remarks at the National Community Reinvestment Coalition Just Economy Conference

March 29, 2023

Federal Reserve Board Vice Chair for Supervision Michael S. Barr pprovided remarks to the National Community Reinvestment Coalition Just Economy Conference.

Federal Reserve Bank of New York

Remarks at the New York Bankers Association Hudson Valley Regional Meeting

March 29, 2023

Federal Reserve Bank of New York Head of Supervision Dianne Dobbeck gave remarks at the New York Bankers Association Hudson Valley Regional Meeting.

Securities and Exchange Commission

Testimony at Hearing Before the Subcommittee on Financial Services and General Government

March 29, 2023

Securities and Exchange Commission (SEC) Chair Gary Gensler testified before the U.S. House Committee on Appropriations Subcommittee on Financial Services and General Government.

Bank Policy Institute

Blog: Why Is the Federal Reserve Abetting a Drain of Deposits from Banks?

March 29, 2023

The Bank Policy Institute published a blog post entitled, "Why Is the Federal Reserve Abetting a Drain of Deposits from Banks?"

International

European Banking Authority

EBA consults on amendments to Guidelines on risk-based AML/CFT supervision to include crypto-asset service providers.

March 29, 2023

The European Banking Authority launched a public consultation on amendments to its Guidelines on risk-based anti-money laundering and countering the financing of terrorism (AML/CFT) supervision.

Bank of England

Financial Policy Summary and Record - March 2023

March 29, 2023

The Bank of England released the summary and record of the Financial Policy Committee meeting for March 2023.

Paper: LDI minimum resilience - recommendation and explainer

March 29, 2023

The Bank of England published a staff paper entitled, "LDI minimum resilience – recommendation and explainer."

Systemic Risk Survey Results - 2023 H1

March 29, 2023

The Bank of England published the results of the Systemic Risk Survey for H1 2023.

Bank of England Prudential Regulation Authority

Thematic findings from the 2022 cyber stress test

March 29, 2023

The Bank of England Prudential Regulation Authority sent a letter to PRA-regulated firms and FMIs outlining the thematic findings from the 2022 Cyber Stress Test.

UK Financial Conduct Authority

FCA updates on its Sustainability Disclosure Requirements and investment labels consultation

March 29, 2023

The Financial Conduct Authority (FCA) set up some of the feedback on its Sustainability Disclosure Requirements and investment labels proposals and next steps, including timing of the Policy Statement.

Speech: Reforming our capital markets ecosystem

March 29, 2023

FCA CEO Nikhil Rathi gave a speech entitled, "Reforming our capital markets ecosystem."

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)

Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)

Federal Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)

Federal Deposit Insurance Corporation – Martin Gruenberg (effective January 5, 2023)

Office of the Comptroller of the Currency – Michael Hsu (acting Comptroller, effective May 10, 2021)

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

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

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.