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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Tuesday, February 8, 2022

February 08, 2022

FedACTion Task Force

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Congress

U.S. House of Representatives

Comment Letter on Treasury Proposal to Implement Law Cracking Down on Anonymous Shell Companies

February 7, 2022

Members of Congress wrote a comment letter to Treasury Secretary Janet Yellen and Financial Crimes Enforcement Network (FinCEN) Acting Director Himamauli Das in support of and to provide guidance on FinCEN's proposed rule implementing key sections of the Corporate Transparency Act (CTA). The Notice of Proposed Rulemaking to which this comment responds focuses on beneficial ownership reporting requirements for the private sector, the first of several rulemakings needed to enact the provisions of the CTA.

Federal Agencies

Federal Reserve Board

The Office of the Comptroller of the Currency

Agencies Announce Public Meeting on Proposed U.S. Bancorp Acquisition of MUFG Union Bank, National Association; Public Comment Period Extended

February 7, 2022

The Federal Reserve Board and the Office of the Comptroller of the Currency announced a joint public meeting on the proposal by U.S. Bancorp, Minneapolis, Minnesota, to acquire MUFG Union Bank, National Association, San Francisco, California.

Federal Reserve Bank of New York

Blog Post: The Future of Payments Is Not Stablecoins

February 7, 2022

The Federal Reserve Bank of New York published a Liberty Street Economics blog post titled, "The Future of Payments Is Not Stablecoins."

Federal Reserve Bank of Boston

Paper: Should the ECB Adjust its Strategy in the Face of a Lower r*?

February 7, 2022

The Federal Reserve Bank of Boston published a working paper titled, "Should the European Central Bank Adjust Its Strategy in the Face of a Lower r*?"

Federal Deposit Insurance Corporation

Acting Chairman Martin J. Gruenberg Announces FDIC Priorities for 2022

February 7, 2022

Federal Deposit Insurance Corporation (FDIC) Acting Chairman Martin J. Gruenberg released a statement and summary of the FDIC's priorities for the coming year. Such priorities address:

Securities and Exchange Commission

SEC Advisory Committee Meeting to Explore Small Business Investment Issues

February 7, 2022

The Securities and Exchange Commission's Small Business Capital Formation Advisory Committee released the agenda for its February 10 meeting, which will cover small business investment issues.

Commodity Futures Trading Commission

CFTC Customer Advisory Warns Online Daters and Social Media Users about Trading Scams

February 7, 2022

The Commodity Futures Trading Commission issued a Customer Advisory warning users of online dating and social media platforms about a recent increase in scams that lure victims into sending their money to fraudulent websites that claim to trade foreign currency exchange contracts, precious metals contracts, or digital assets.

Fannie Mae

Housing Sentiment Drifts Lower as Affordability Constraints Sharpen

February 7, 2022

The Fannie MaeHome Purchase Sentiment Index® decreased 2.4 points to 71.8 in January, its lowest level since May 2020, as affordability constraints continue to weigh on the housing market. Overall, four of the index's six components decreased month over month, including the components measuring consumers' perceptions of homebuying and home-selling conditions. In January, a survey record-low 25% of respondents reported that it's a good time to buy a home, compared to the 69% of consumers who reported that it's a good time to sell. Consumers also reported greater concerns about job stability and the future path of mortgage rates. Year over year, the full index is down 5.9 points.

Bank Policy Institute

Comment Letter on FinCEN Effort to Stem Shell-Company-Enabled Money Laundering

February 7, 2022

The Bank Policy Institute filed a comment letter on a Financial Crimes Enforcement Network proposal intended to stem the illicit cash flow from terrorists, sex traffickers, kleptocrats and other bad actors.

International

European Banking Authority

The ESAs Recommend Actions to Ensure the EU's Regulatory and Supervisory Framework Remains Fit-for-purpose in the Digital Age

February 7, 2022

The three European Supervisory Authorities (European Banking Authority, European Insurance and Occupational Pensions Authority, and European Securities and Markets Authority) published a joint report in response to the European Commission's February 2021 Call for Advice on Digital Finance. The proposals that were put forward aim at maintaining a high level of consumer protection and addressing risks arising from the transformation of value chains, platformization and the emergence of new "mixed-activity groups," i.e. groups combining financial and non-financial activities.

Bank of England Prudential Regulation Authority

CP2/22 - Definition of Capital: Updates to PRA Rules and Supervisory Expectations

February 7, 2022

The Prudential Regulation Authority (PRA) published a Consultation Paper CP2/22 titled, "Definition of Capital: Updates to PRA Rules and Supervisory Expectations," that sets out the PRA's proposed approach to transferring the UK Technical Standards for own funds requirements for institutions into PRA rules, with amendments to reflect revisions to the Capital Requirements Regulation which applied from June 27, 2019.

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 became Acting Chair as of February 4, 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.