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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Wednesday, March 10, 2021

March 10, 2021

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Administration Changes

Appointments/Confirmation Hearings

Department of the Treasury – Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (Nominee)

Securities and Exchange Commission – Gary Gensler (Nominee)

Small Business Administration – Isabel Guzman (Nominee)

Commodity Futures Trade Commission

National Credit Union Administration – Todd M. Harper

Department of Housing and Urban Development – Marcia Fudge (Nominee)

  • Acting Secretary: Matthew E. Ammon

Department of Education – Dr. Miguel Cardona

Congress

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, adopted by US Senate on March 6, 2021, pending in the US House of Representatives.

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.

U.S. Senate

Committee on Banking, Housing, and Urban Affairs

Committee Holds Hearing on State of Retail Investing

March 9, 2021

The U.S. Senate Committee on Banking, Housing, and Urban Affairs (Committee) held a hearing entitled, “Who Wins on Wall Street? GameStop, Robinhood, and the State of Retail Investing.” Senator Sherrod Brown (D-OH), Chairman of the Committee, and Senator Pat Toomey (R-PA), Ranking Member of the Committee, both delivered opening statements at the hearing.

U.S. House of Representatives

Committee on Financial Services

Chairwoman Waters Urges Bank Regulators to not Weaken Leverage and Capital Requirements

Chairwoman Maxine Waters (D-CA) sent a letter to Federal Reserve Chair Jerome Powell, Federal Reserve Vice-Chair Randal K. Quarles, FDIC Chairman Jelena McWilliams and Acting Comptroller of the Currency Blake Paulson urging their agencies to not renew expiring regulatory forbearances adopted at the beginning of the COVID-19 crisis that had the effect of reducing bank capital requirements for large banks.

Federal Agencies

Federal Reserve Board

Federal Bank Regulators Issue Rule Supporting Treasury’s Investments in Minority Depository Institutions, Community Development Financial Institutions

March 9, 2021

The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency announced an interim final rule that supports the U.S. Department of the Treasury’s implementation of a program to make capital investments in minority depository institutions and community development financial institutions.

Federal Reserve Issues Guidance on Assessing Institutions' Planned Transitions from LIBOR

March 9, 2021

The Board of Governors of the Federal Reserve System issued guidance to assist examiners in assessing supervised firms’ progress in preparing for the transition away from LIBOR.

Federal Deposit Insurance Corporation

Emergency Capital Investment Program Available for CDFIs, and MDIs

March 9, 2021

The Federal Deposit Insurance Corporation is advising certified Community Development Financial Institutions (CDFIs) and minority depository institutions (MDIs) of the Emergency Capital Investment Program (ECIP) established by the Consolidated Appropriations Act. Under the ECIP, certified CDFIs and MDIs may be eligible for capital investments from the U.S. Department of the Treasury to, among other things, provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers, especially in low-income and underserved communities.

Securities and Exchange Commission

SEC’s Division of Corporation Finance Revises Disclosure Guidance on Confidential Treatment Orders

March 9, 2021

The Securities and Exchange Commission’s Division of Corporation Finance revised CF Disclosure Guidance Topic No. 7, to update the options available to companies whose confidential treatment orders are about to expire.

Financial Crimes Enforcement Network

FinCEN Addresses its Efforts Related to Trade in Antiquities, Art

March 9, 2021

The Financial Crimes Enforcement Network (FinCEN) issued a Notice to inform financial institutions about ongoing efforts with respect to the Anti-Money Laundering Act of 2020 requirements related to the antiquities and arts trades. The Notice provides information about illicit finance risks, as well as specific instructions for filing Suspicious Activity Reports related to trade in antiquities and art.

National Credit Union Association

NCUA Chairman Harper Delivers Keynote Speech at Inclusiv Town Hall

March 9, 2021

Todd M. Harper, Chairman of the National Credit Union Administration, delivered the keynote speech at a town hall hosted by Inclusiv.

U.S. Small Business Administration

SBA’s Office of Advocacy Releases Report on Small Loans’ Effects on Bank, Small Business Growth

March 9, 2021

The U.S. Small Business Administration’s Office of Advocacy released a report entitled “Effects of Small Loans on Bank and Small Business Growth.”

SBA’s Office of International Trade to Host Webinar on SBDCs

March 8, 2021

The U.S. Small Business Administration’s Office of International Trade will host a webinar entitled “Keys to Global Market Success,” on March 16 at 2:00 p.m., Eastern. The webinar will examine the impact Small Business Development Centers have on the export success of U.S. small businesses.

State Agencies

New York State Department of Financial Services

NYDFS Issues Cybersecurity Alert to Regulated Entities Concerning Microsoft Exchange Email Servers

March 9, 2021

The New York State Department of Financial Services (NYDFS) issued an industry letter to all of its regulated entities following the recent discovery of cybersecurity vulnerabilities in Microsoft Exchange Server.

NYDFS Urges U.S. Education Secretary to Reverse Previous Administration Policies

March 9, 2021

The New York State Department of Financial Services (NYDFS), on behalf of a multi-state coalition of state financial regulators, sent a letter to Dr. Miguel Cardona, Secretary of the U.S. Department of Education, urging Secretary Cardona to reverse policies instituted by the former Secretary of Education that are viewed as obstructing states’ ability to regulate the private companies that service federal student loans. 

International

European Commission

European Parliament Confirms Political Agreement on InvestEU

March 9, 2021

The European Parliament voted to confirm the political agreement on InvestEU, reached in December 2020. The InvestEU program aims to provide the European Union with long-term funding to support the recovery from the COVID-19 pandemic.

European Banking Authority

EBA Issues Update on Investigation into Cyber-Attack

March 9, 2021

The European Banking Authority (EBA) issued an update on its investigation into a cyber-attack against its servers on March 7, 2021. According to the update, the EBA has established that the scope of the event caused by the recently widely-notified vulnerabilities was limited, and that the confidentiality of the EBA’s systems and data was not compromised.

Bank of England

Bank Issues MLAR Quarterly Statistical Release

March 9, 2021

The Bank of England (Bank) issued its Mortgage Lenders and Administrators Return (MLAR) statistical release for the fourth quarter of 2020. The MLAR is a quarterly statistical release aggregated from data on mortgage lending activities provided by approximately 340 regulated mortgage lenders and administrators.