PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Tuesday, March 8, 2022
March 08, 2022
FedACTion Task Force
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Major Developments
Financial Crimes Enforcement Network
FinCEN Issues Alert on Potential Russian Sanctions Evasion Efforts
March 7, 2022
The Financial Crimes Enforcement Network (FinCEN) issued a FinCEN Alert to financial institutions, highlighting the potential for attempts to evade expansive sanctions and other measures implemented in connection with the Russian Federation's ongoing, unprovoked invasion of Ukraine. The alert provides example red flags to assist in identifying suspected sanctions evasion activity.
Congress
U.S. Senate
Committee on Banking, Housing, and Urban Affairs
Bill Introduced to Ban Forced Arbitration
March 7, 2022
The Arbitration Fairness for Consumers Act has been introduced to prohibit banks and other financial institutions from using forced arbitration clauses against consumers who want to seek restitution and justice.
Federal Agencies
U.S. Department of the Treasury
New Treasury Report Finds Corporate Concentration, Anti-competitive Practices Have Stifled Wages for Workers and Reduced their Power in the Marketplace
March 7, 2022
The U.S. Department of the Treasury, in consultation with the U.S. Department of Justice, the U.S. Department of Labor and the Federal Trade Commission, issued a new report on competition in the labor market today. The report, "The State of Labor Market Competition in the U.S. Economy," finds that the American labor market falls far from the perfect competition that economists had long assumed due to employer concentration and anti-competitive labor practices.
Remarks by Under Secretary for Domestic Finance Nellie Liang at the Institute of International Bankers' Annual Washington Conference
March 7, 2022
Under Secretary for Domestic Finance Nellie Liang gave remarks on financial reforms taken since the global financial crisis more than a decade ago, and more recent efforts to address newer, more novel risks, specifically climate change and increasing digitization of assets.
Federal Reserve Board
The Federal Reserve Board Releases the January 2022 G.19 Consume Credit Data
March 7, 2022
In January, consumer credit increased at a seasonally adjusted annual rate of 1.9%. Revolving credit decreased at an annual rate of 0.3%, while nonrevolving credit increased at an annual rate of 2.5%.
Office of the Comptroller of the Currency
Acting Comptroller Discusses Climate Risk Management, Diversity and Inclusion
March 7, 2022
Acting Comptroller of the Currency Michael J. Hsu discussed climate-related financial risk and the importance of promoting diversity and inclusion in the banking industry at the Institute of International Bankers Annual Washington Conference.
National Credit Union Administration
Credit Union Assets, Shares and Deposits Grow in Fourth Quarter
March 7, 2022
The National Credit Union Administration (NCUA) released their Quarterly Data Summary Report for the fourth quarter of 2021. According to the report, total assets in federally insured credit unions rose by $215.8 billion, or 11.7%, to $2.06 trillion over the year ending in the fourth quarter of 2021, and insured shares and deposits grew $166.8 billion, or 11.4%, to $1.63 trillion.
Fannie Mae
More Consumers Expect Mortgage Rates and Home Prices to Rise Even Further
March 7, 2022
Fannie Mae released the Home Purchase Sentiment Index which increased by 3.5 points to 75.3 in February, but affordability constraints continue to drive consumers' perception of the housing market. Overall, five of the index's six components increased month over month, including the components measuring consumers' perceptions of homebuying and home-selling conditions.
Bank Policy Institute
NIST Report Gives Narrow Glimpse of Complex Consumer Data-Sharing Picture
March 3, 2022
The Bank Policy Institute, American Bankers Association and Securities Industry and Financial Markets Association issued a comment letter in response to a recent National Institute of Standards and Technology (NIST) draft report on cybersecurity considerations for open banking. The comment letter states that while the NIST report rightly identifies the importance of cybersecurity and privacy safeguards when it comes to how companies share sensitive financial data about customers, it offers a wholly incomplete picture of the current consumer financial data-sharing ecosystem in the United States. The draft report also endorses open banking without examining potential risks or recommending security and privacy measures to mitigate those risks.
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 serves as Acting Chair)
- 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
- Statement by Federal Reserve Board Chair Jerome H. Powell on his nomination by President Biden (November 22, 2021)
- Statement by Governor Lael Brainard on her nomination by President Biden (November 22, 2021)
- Secretary of the Treasury Janet L. Yellen Statement on Federal Reserve Nominations (November 22, 2021)
- Statement by Secretary Walsh on Federal Reserve Nominations (November 22, 2021)
- Brown Statement on the Renomination of Jerome Powell for Fed Chair (November 22, 2021)
- Toomey Statement on Renomination of Jerome Powell for Fed Chair (November 22, 2021)
- Brown Applauds Biden's Nomination of Governor Lael Brainard for Vice Chair (November 22, 2021)
- Brown Applauds Biden's Nominees for Fed Board (January 14, 2022)
- Toomey Statement on President Biden's Fed Nominees (January 14, 2022)
- Waters Applauds Nominations of Sarah Bloom Raskin, Lisa Cook, and Philip Jefferson to Leadership Roles in the Federal Reserve (January 14, 2022)
- Statement by Secretary of the Treasury Janet L. Yellen on Federal Reserve Nominations (January 14, 2022)
Federal Reserve Bank of New York
Consumer Financial Protection Bureau - Rohit Chopra (effective October 12, 2021)
- Statement by House Committee on Financial Services Chair Maxine Waters on Rohit Chopra's Confirmation (September 30, 2021)
- CSBS Statement on Rohit Chopra Confirmation as CFPB Director (September 30, 2021)
Securities and Exchange Commission - Gary Gensler (effective April 17, 2021)
- LizAnn Eisen Joins Division of Corporation Finance as Deputy Director, Disclosure Program (January 27, 2022)
- Lori H. Price Named Acting Director of the Office of Credit Ratings; Ahmed Abonamah to Leave SEC (February 1, 2022)
- Kelly L. Gibson, Director of the Philadelphia Regional Office, to Leave the SEC; Scott Thompson and Joy Thompson named Office Acting Co-Heads (February 11, 2022)
Small Business Administration - Isabella Casillas Guzman (effective March 16, 2021)
- Statement by Administrator Guzman Applauding President Biden's Appointees to Lead SBA Regional Offices (November 18, 2021)
- Statement by Administrator Guzman Applauding President Biden's New Appointees to the U.S. Small Business Administration (December 6, 2021)
- Statement by Administrator Guzman Applauding President Biden's New Appointees to the U.S. Small Business Administration (January 25, 2022)
Commodity Futures Trade Commission – Rostin Behnam (effective December 17, 2021)
- Kristin Johnson, Nominee for Commissioner of the Commodity Futures Trading Commission (September 13, 2021)
- Christy Goldsmith Romero, Nominee for Commissioner of the Commodity Futures Trading Commission (September 13, 2021)
- U.S. Senate Unanimously Confirms Behnam as Chairman (December 17, 2021)
- CFTC Chairman Rostin Behnam Announces Executive Staff Appointments (January 20, 2022)
- CFTC Chairman Rostin Behnam Appoints Initial CFTC Leadership (January 25, 2022)
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)
- Adrianne Todman Sworn in as Deputy Secretary of Housing and Urban Development (June 15, 2021)
- Statement from Secretary Marcia L. Fudge on the Confirmation of Alanna McCargo (December 15, 2021)
- Statement from Secretary Marcia L. Fudge on the Confirmation of Alanna McCargo (February 15, 2022)
Federal Housing Finance Agency – Sandra L. Thompson
- Brown Statement on the Selection of Sandra Thompson to Lead FHFA (December 14, 2021)
- Waters Applauds Biden's Nomination of Sandra L. Thompson as Permanent Director of the FHFA (December 14, 2021)
- Statement from HUD Secretary Marcia L. Fudge on the Nomination of Sandra Thompson (December 14, 2021)
U.S. Department of Education - Dr. Miguel Cardona (effective March 2, 2021)
- Secretary Cardona Statement on Confirmation of Education Department Officials Brown, Rodriguez and Graham (October 6, 2021)
- Statement from Secretary Miguel Cardona on the Confirmation of Catherine Lhamon as Assistant Secretary for the Office for Civil Rights (October 20, 2021)
- Statement by U.S. Secretary of Education Miguel Cardona on the Confirmation of Sandra Bruce as the Department's Inspector General (December 3, 2021)
- Statement by U.S. Secretary of Education Miguel Cardona on President Biden's Nomination of LaWanda Toney (December 16, 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.