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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Tuesday, July 25, 2023

July 25, 2023

FedACTion Task Force

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Federal Agencies

U.S. Department of the Treasury

Treasury Targets Malian Officials Facilitating Wagner Group

July 24, 2023

The U.S. Department of the Treasury's Office of Foreign Assets Control sanctioned three Malian transition government and military officials for facilitating the deployment and expansion of the Private Military Company 'Wagner''s (Wagner Group) activities in Mali.

Federal Reserve Board

Federal Reserve Board announces a consent order and a $268.5 million fine with UBS Group AG, of Zurich, Switzerland, for misconduct by Credit Suisse, which UBS subsequently acquired in June 2023

July 24, 2023

The Federal Reserve Board announced a consent order and a $268.5 million fine with UBS Group AG, of Zurich, Switzerland, for misconduct by Credit Suisse, which UBS subsequently acquired in June 2023. See also Bank of England Prudential Regulatory Authority order below.

Federal Deposit Insurance Corporation

Estimated Uninsured Deposits Reporting Expectations

July 24, 2023

The Federal Deposit Insurance Corporation sent a financial institution letter on estimated uninsured deposits reporting expectations.

International

European Banking Authority

Report:Interdependent Assets and Liabilities in the net stable funding ratio

July 24, 2023

The European Banking Authority published its report on the treatment of interdependent assets and liabilities in the net stable funding ratio.

Bank of England

Letter on firms' preparations for the second Resolvability Assessment Framework (RAF) assessment

July 24, 2023

Bank of England Head of International Resolvability Division Christopher Jackson and Head of Domestic Resolvability Division Robert Zammit sent letters to Chief Financial Officers of the major UK banks ahead of the second Resolvability Assessment Framework assessment.

Bank of England Prudential Regulation Authority

The PRA imposes record fine of £87m on Credit Suisse for risk management and governance failures in connection with Archegos Capital Management exposure

July 24, 2023

The Prudential Regulation Authority has fined Credit Suisse International and Credit Suisse Securities (Europe) Ltd £87 million for significant failures in risk management and governance between 1 January 2020 and 31 March 2021, in connection with the Firms' exposures to Archegos Capital Management.

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)

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)

Financial Crimes Enforcement Network – Andrea Gacki (effective July 13, 2023)

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.