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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Wednesday, August 9, 2023

August 09, 2023

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Major Developments

Federal Reserve Board

Federal Reserve Issues Guidance on Stablecoin Issuances by State-chartered Member Banks

The Board of Governors of the Federal Reserve System announced the creation of a new supervision program addressing novel activities by State-chartered member banks. Under such new program, the Federal Reserve implemented a nonobjection process with respect to certain Stablecoin activities.

Press Release

SR 23-7 Creation of Novel Activities Supervision Program

SR 23-8 Supervisory Nonobjection Process for State Member Banks Seeking to Engage in Certain Activities Involving Dollar Tokens

Congress

U.S. House of Representatives

Committee on Financial Services

Ranking Member Waters Urges Fortune 100 Financial Services CEOs to Remain Committed to Diversity and Inclusion Efforts

August 8, 2023

U.S. House Committee on Financial Services Ranking Member Maxine Waters (D-CA) sent a letter to CEOs of the nation's Fortune 100 financial services companies urging them to continue their diversity and inclusion practices.

Federal Agencies

U.S. Department of the Treasury

Remarks by Under Secretary Brian Nelson on Illicit Finance in Lexington, Kentucky

August 8, 2023

Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson and Acting Director of the Financial Crimes Enforcement Network Himamauli Das traveled to Lexington, Kentucky to join Representative Andy Barr (R-KY 6th District), Chairman of the House Subcommittee on Financial Institutions and Monetary Policy, for a discussion on Treasury's illicit finance priorities with small businesses, financial institutions, and local law enforcement.

Federal Reserve Bank of New York

Total Household Debt Reaches $17.06 Trillion in Q2 2023; Credit Card Debt Exceeds $1 Trillion

August 8, 2023

The Federal Reserve Bank of New York's Center for Microeconomic Data issued its Quarterly Report on Household Debt and Credit.

Blog: Credit Card Markets Head Back to Normal after Pandemic Pause

August 8, 2023

The Federal Reserve Bank of New York published a Liberty Street Economics blog post entitled, "Credit Card Markets Head Back to Normal after Pandemic Pause."

Federal Reserve Bank of Boston

Working Paper: Risk Management and Derivatives Losses

August 8, 2023

The Federal Reserve Bank of Boston Research Department published a working paper entitled, "Risk Management and Derivatives Losses."

Federal Deposit Insurance Corporation

FDIC's Technical Assistance Video Program

August 8, 2023

As part of the FDIC's Community Bank Outreach Program, the Federal Deposit Insurance Corporation is offering the Technical Assistance Video Program to provide videos that convey fundamental information pertaining to various aspects of the examination process and areas of supervisory focus.

Office of the Comptroller of the Currency

Loan Purchase Activities: Legal Lending Limit Guidance

August 8, 2023

The Office of the Comptroller of the Currency issued a bulletin to provide banks1 with guidance regarding the applicability of the legal lending limit (LLL) to purchased loans.

Federal Housing Finance Agency

Blog: Have racial and ethnic valuation gaps in home purchase narrowed?

August 8, 2023

The Federal Housing Finance Agency published a blog post entitled, "Have racial and ethnic valuation gaps in home purchase narrowed?"

International

European Banking Authority

The EBA's recent mystery shopping exercise shows the value this tool adds to the supervisory tasks of national authorities

August 8, 2023

The European Banking Authority published a Report on its mystery shopping exercise into personal loans and payment accounts.

Bank of England

Blog: How are higher interest rates affecting new mortgage lending?

August 8, 2023

The Bank of England published a Bank Overground blog post entitled, "How are higher interest rates affecting new mortgage lending?"

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)

  • Vice Chair Phillip N Jefferson (nominated May 12, 2023)
  • Vice Chair for Supervision Michael Barr (sworn in July 19, 2022)
  • Governor Michelle W. Bowman (sworn in November 26, 2018)
  • Governor Christopher J. Waller (sworn in December 18, 2020)
  • Governor Lisa D. Cook (sworn in May 23, 2022)
  • Governor Adriana Kugler (nominated May 12, 2023)

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)

  • Vice Chairman Travis Hill (sworn in January 5, 2023)
  • Director Jonathan McKernan (sworn in January 5, 2023)
  • Director Michael Hsu (Acting Comptroller of the Currency)
  • Director Rohit Chopra (Director of Consumer Financial Protection Bureau)

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.