PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Tuesday, December 22, 2020
December 22, 2020
FedACTion Task Force
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Major Developments
U.S. Senate and U.S. House of Representatives Approve $900 Billion COVID-19 Relief Bill
December 21, 2020
The U.S. Senate and U.S. House of Representatives approved a new COVID-19 relief bill, Senate Amendment to H.R. 133 (Consolidated Appropriations Act, 2021). The bill now heads to the President for his signature. The bill will provide $900 billion in economic relief and includes, among other things: (i) aid for small businesses, including more than $284 billion for forgivable Paycheck Protection Program loans; (ii) direct payment checks for eligible individuals of up to $600 per adult and child; (iii) $300 per week for enhanced unemployment insurance benefits; and (iv) $25 billion for rental assistance and an eviction moratorium extension.
- Full Text Bill
- Committee Bill Page
- Statement by Senate Committee on Banking, Housing and Urban Affairs Ranking Member Sherrod Brown
- Statement by House Financial Services Committee Chairwoman Maxine Waters
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 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.
Federal Agencies
Blog: What’s Up with Stocks?
December 21, 2020
The Federal Reserve Bank of New York’s Liberty Street Economics blog released a post titled “What’s Up with Stocks?” The author looks at what investors expected should have happened to stocks and what they expect will happen going forward.
The Pulse of Small Business: An Industry Breakdown
December 21, 2020
The Office of Advocacy of the U.S. Small Business Administration released “The Pulse of Small Business: An Industry Breakdown.” The breakdown illustrates that the COVID-19 pandemic has disproportionately impacted businesses that typically require more person-to-person contact. Recovery rates and changes in the operating capacity of small businesses since the start of the pandemic also have varied by industry.
Department of Housing and Urban Development/Federal Housing Administration
FHA Extends Options for Single Family Borrowers Financially Impacted by COVID-19
December 21, 2020
The Federal Housing Administration (FHA) announced it is extending the foreclosure and eviction moratorium for single family FHA-insured mortgages for an additional two months, through February 28, 2021. The FHA is also extending through February 28, 2021, the deadline for single family borrowers with FHA-insured mortgages to request an initial COVID-19 forbearance from their mortgage servicer to defer or reduce their mortgage payments for up to six months, which can be extended for an additional six months. In addition, the FHA also extended multiple temporary provisions for lenders and servicers to allow them to continue doing FHA business despite social distancing considerations.
International
European Banking Authority
EBA Provides Additional Clarity on the Implementation of Selected COVID-19 Policies
December 21, 2020
The European Banking Authority (EBA) published a report including additional clarifications on the application of the prudential framework in response to issues raised as a consequence of the COVID-19 pandemic. They mainly cover the EBA Guidelines on moratoria and COVID-19 reporting, operational risk, downturn LGD estimation and the credit risk mitigation framework. The report is part of the EBA’s wider monitoring of the implementation of COVID-19 policies as well as of the application of existing policies.
Bank of England
Paper: The Impact of COVID-19 on Productivity
December 21, 2020
The Bank of England released a staff paper titled “The Impact of COVID-19 on Productivity.” The authors analyze the impact of COVID-19 on productivity in the United Kingdom using data derived from a large monthly firm panel survey.
Paper: Capital Flows during the Pandemic: Lessons for a More Resilient International Financial Architecture
December 21, 2020
The Bank of England released a paper titled “Capital Flows during the Pandemic: Lessons for a More Resilient International Financial Architecture.” The paper explores how the sudden stop in capital flows to emerging market economies associated with the COVID-19 pandemic unfolded, the substantial policy responses that were needed to alleviate it, and the lessons to be learned from the episode.