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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Wednesday, June 29, 2022

June 29, 2022

FedACTion Task Force

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PH Fintech Tracker on Executive Order for Digital Assets

Congress

U.S. House of Representatives

Committee on Financial Services

Hearing: Where Have All the Houses Gone? Private Equity, Single Family Rentals, and America's Neighborhoods

June 28, 2022

The U.S. House Committee on Financial Services Subcommittee on Oversight & Investigations held a hearing entitled, "Where Have All the Houses Gone? Private Equity, Single Family Rentals, and America's Neighborhoods."

Federal Agencies

U.S. Department of the Treasury

Statement by Secretary Yellen on G7 Price Cap Announcement

June 28, 2022

U.S. Secretary of the Treasury Janet L. Yellen issued a statement on the G7 announcement of a price cap on Russian oil.

U.S. Treasury Sanctions Nearly 100 Russian Entities and Individuals, Prohibits Russian Gold Imports

June 28, 2022

The U.S. Department of the Treasury's Office of Foreign Assets Control designated 70 entities, many of which are critical to the Russian Federation's defense industrial base, as well as 29 Russian individuals. OFAC also determined that the prohibitions of section 1(a)(i) of E.O. 14068 shall apply to gold of Russian Federation origin, with immediate effect.

Federal Reserve Board
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency

Agencies issue host state loan-to-deposit ratios

June 28, 2022

The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency issued the host state loan-to-deposit ratios that are used to evaluate compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios replace those from June 2021.

Federal Reserve Board

Paper: Cost of Banking for Low- and Moderate-Income and Minority Communities

June 28, 2022

The Federal Reserve Board published a paper entitled, "Cost of Banking for LMI and Minority Communities."

Consumer Financial Protection Bureau

CFPB Affirms Ability for States to Police Credit Reporting Markets

June 28, 2022

The Consumer Financial Protection Bureau issued an interpretive rule affirming states' abilities to protect their residents through their own fair credit reporting laws.

Remarks at the FDIC Meeting of the Advisory Committee on Economic Inclusion

June 28, 2022

Consumer Financial Protection Bureau Deputy Director Zixta Martinez gave remarks at the FDIC Meeting of the Advisory Committee on Economic Inclusion.

Financial Crimes Enforcement Network

FinCEN and BIS Issue Joint Alert on Potential Russian and Belarusian Export Control Evasion Attempts

June 28, 2022

The Financial Crimes Enforcement Network and the U.S. Department of Commerce's Bureau of Industry and Security today issued a joint alert to financial institutions advising them to be vigilant against efforts by individuals or entities to evade BIS export controls implemented in connection with the Russian Federation's further invasion of Ukraine.

FINRA

Blog Post: TRACE at 20 – Reflecting on Advances in Transparency in Fixed Income

June 28, 2022

FINRA published a blog post entitled, "TRACE at 20 – Reflecting on Advances in Transparency in Fixed Income."

National Credit Union Administration

CDFI Fund Offering $1.73 Billion in Grants to Help Communities Recovering from COVID-19 Pandemic

June 28, 2022

The CDFI Fund is making $1.73 billion available to help eligible financial institutions expand lending, provide grants, and make investments in low-to-moderate-income communities, including minority communities, that need better access to financial services and were disproportionately affected by the COVID-19 pandemic.

International

European Banking Authority

EBA adopts decision on reporting of supervisory data from investment firms' competent authorities to the EBA

June 28, 2022

The European Banking Authority adopted a decision on how competent authorities supervising investment firms under the Investment Firms Regulation will transmit supervisory data to the EBA. This Decision sets the scope, timing and modalities of the data submission via the European Centralised Infrastructure of Data (EUCLID).

EBA observed an increasing encumbrance ratio in 2021 albeit with some signs of stabilization

June 28, 2022

The European Banking Authority published its annual Asset Encumbrance Report.

Bank of England

Speech: Navigating market signals: MaPS for policy makers

June 28, 2022

Andrea Rosen gave a speech at an Association for Financial Markets in Europe event entitled, "Navigating market signals: MaPS for policy makers."

Bank of England Prudential Regulation Authority

Letter: PRA's review of the use of the SIMM Model: Conclusions

June 28, 2022

Duncan Mackinnon, David Bailey, and Nathanaël Benjamin of the Bank of England Prudential Regulation Authority sent a letter to Chief Risk Officers on the use of the Standardized Initial Margin Methodology (SIMM) model by firms in scope of the Mandatory Margining Rules for non-centrally cleared derivatives.

UK Financial Conduct Authority

Product sales data - 2021

June 28, 2022

The Financial Conduct Authority released product sales data for 2021.

Portfolio Letter: FCA Supervisory strategy for the Debt Advice portfolio

June 28, 2022

The Financial Conduct Authority published a portfolio letter entitled, "FCA Supervisory strategy for the Debt Advice portfolio."

Administration Changes

Vacancies

Federal Reserve Board

  • Vice Chair for Supervision – Michael S. Barr nominated April 15, 2022 (Nomination Hearing held on May 19, 2022; committee approval on June 8, 2022; pending full Senate vote.)

Federal Deposit Insurance Corporation

  • Chair – Vacant (Martin Gruenberg serves as Acting Chair)
  • Vice Chairman – Vacant

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 Deposit Insurance Corporation – Martin Gruenberg (Acting Chair, appointed February 5, 2022)

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, (confirmed May 25, 2022)

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.