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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Thursday, May 11, 2023

May 11, 2023

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PH Fintech Tracker on Executive Order for Digital Assets

Major Developments

California Department of Financial Protection and Innovation

California DFPI Review of the Supervision and Closure of Silicon Valley Bank

May 10, 2023

The California Department of Financial Protection and Innovation (DFPI) released its Review of DFPI's Oversight and Regulation of Silicon Valley Bank.

Congress

U.S. Senate

Committee on Banking, Housing, and Urban Affairs

Joint Hearing: The Future of Digital Assets: Closing the Regulatory Gaps in the Digital Asset Ecosystem

May 10, 2023

The House Committee on Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, alongside the House Committee on Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development, held a joint hearing entitled, "The Future of Digital Assets: Closing the Regulatory Gaps in the Digital Asset Ecosystem."

Hearing: Federal Responses to Recent Bank Failures

May 10, 2023

The House Committee on Financial Services Subcommittee on Financial Institutions and Monetary Policy held a hearing entitled, "Federal Responses to Recent Bank Failures."

Committee on Small Business

Hearing: Taking on More Risk: Examining the SBA's Changes to the 7(a) Lending Program Part I

May 10, 2023

The U.S. House Committee on Small Business held a hearing entitled, "Taking on More Risk: Examining the SBA's Changes to the 7(a) Lending Program Part I." The Committee heard testimony from the U.S. Small Business Administration Associate Administrator Patrick Kelly.

Federal Agencies

Federal Reserve Bank of New York

Underlying Inflation Gauge – May 2023

May 10, 2023

The Federal Reserve Bank of New York released the May 2023 Underlying Inflation Gauge with data from April 2023.

Blog: Assessing the Outlook for Employment across Industries

May 10, 2023

The Federal Reserve Bank of New York published a Liberty Street Economics blog post entitled, "Assessing the Outlook for Employment across Industries."

Federal Reserve Bank of Boston

Paper: Personality Traits and Financial Outcomes

May 10, 2023

The Federal Reserve Bank of Boston Research Department published a working paper entitled, "Personality Traits and Financial Outcomes."

Securities and Exchange Commission

Chair Gensler's Remarks at the 2023 SEC Municipal Securities Disclosure Conference

May 10, 2023

SEC Chair Gary Gensler and Commissioner Jaime Lizarraga gave remarks at the 2023 Municipal Securities Disclosure Conference.

The Next "Century of Progress": Remarks before the International Swaps and Derivatives Association Annual Meeting

May 10, 2023

SEC Chair Gary Gensler gave remarks before the International Swaps and Derivatives Association Annual Meeting entitled, "The Next 'Century of Progress.'"

Consumer Financial Protection Bureau

CFPB Issues Guidance to Rein in Creation of Fake Accounts to Harvest Fees

May 10, 2023

The Consumer Financial Protection Bureau (CFPB) issued a new circular affirming that a bank may violate federal law if it unilaterally reopens a deposit account to process transactions after a consumer has already closed it.

FINRA

FINRA, NFA Expand MOU to Include Information Sharing, Collaboration

May 10, 2023

The Financial Industry Regulatory Authority (FINRA) and National Futures Association recently held a special summit focused on crypto assets and agreed to expand their Memorandum of Understanding to address crypto activities that fall within their respective regulatory mandates.

Federal Housing Finance Agency

FHFA Announces Rescission of Enterprise Upfront Fees Based on Debt-To-Income (DTI) Ratio

May 10, 2023

The Federal Housing Finance Agency announced that it has rescinded the upfront fees based on borrowers' DTI ratios for loans acquired by Fannie Mae and Freddie Mac.

U.S. Department of Labor

BLS Releases April 2023 Jobs Report

May 5, 2023

The U.S. Department of Labor Bureau of Labor Statistics released the Employment Situation Report for April 2023.

Bank Policy Institute

BPI Chief Economist Bill Nelson participates on AEI Panel on Underlying Causes of the Banking Crisis of 2023

May 10, 2023

Bank Policy Institute Bill Nelson participated in a panel event hosted by the American Enterprise Institute on May 9, 2023. The panel examined some of the events around the collapse of Silicon Valley Bank, Signature Bank and First Republic and how failure of both management and supervision contributed to those events.

International

Bank of England

Speech: Money: A Question of Purpose and Trust

May 10, 2023

External member of the Financial Policy Committee Carolyn A. Wilkins gave a speech at the OMFIF global annual Digital Monetary Institute symposium entitled, "Money: A Question of Purpose and Trust."

UK Financial Conduct Authority

FCA warns of impending Consumer Duty deadline

May 10, 2023

With fewer than 90 days to go until the start of the Consumer Duty the Financial Conduct Authority has urged firms to ensure they are ready for the 31 July deadline.

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.