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PH FedACTion: Financial Regulatory Updates

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

November 10, 2021

By Paul Hastings Professional

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PH Client Alerts

Click here to read more from our Coronavirus series.

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, 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.

U.S. Senate

Committee on Small Business and Entrepreneurship

Cardin Lauds Final Passage of Legislation to Expand & Make Permanent Minority Business Development Agency

November 9, 2021

U.S. Senate Committee on Small Business and Entrepreneurship Chair Ben Cardin (D-MD) issued a statement on the final passage of his legislation to make permanent and expand the Minority Business Development Agency, which was included in the bipartisan Infrastructure Investment and Jobs Act.

U.S. House of Representatives

Committee on Financial Services

There's No Pride in Prejudice: Eliminating Barriers to Full Economic Inclusion for the LGBTQ+ Community

November 9, 2021

The U.S. House Committee on Financial Services Subcommittee on Diversity and Inclusion held a hearing titled, "There's No Pride in Prejudice: Eliminating Barriers to Full Economic Inclusion for the LGBTQ+ Community."

Federal Agencies

U.S. Department of the Treasury

Speech: Secretary of the Treasury Janet L. Yellen on Build Back Better Act and Bipartisan Infrastructure Bill

November 9, 2021

U.S. Secretary of the Treasury Janet L. Yellen delivered remarks at the University of Nevada-Las Vegas Center for Business and Economic Research Outlook Conference. In her speech, Secretary Yellen highlighted the Infrastructure Investment and Jobs Act.

Department of Commerce

Interagency Convening on Equitable Economic Growth

November 9, 2021

The Department of Commerce brought together key voices from the government, business, investor, philanthropic, and advocacy communities to identify and take action on opportunities for collaboration as it strives to implement an inclusive recovery and shape an economic system that works for all.

Agenda

Treasury Secretary Yellen Remarks

SEC Chair Gensler Remarks

Federal Reserve Board

Speech: Chair Powell, Opening Remarks at Conference on Diversity and Inclusion

November 9, 2021

Board of Governors of the Federal Reserve System Chair Jerome H. Powell gave opening remarks at the Conference on Diversity and Inclusion in Economics, Finance, and Central Banking.

Federal Reserve Bank of New York

Report: Total Household Debt Climbs to Over $15 Trillion in Q3 2021, Driven by New Extensions of Credit

November 9, 2021

The Federal Reserve Bank of New York's Center for Microeconomic Data issued its Quarterly Report on Household Debt and Credit. The report shows that total household debt increased by $286 billion (1.9%) to $15.24 trillion in the third quarter of 2021. The total debt balance is now $1.1 trillion higher than at the end of 2019. It is also $890 billion higher than in Q3 2020, and $2.57 trillion higher, in nominal terms, than the $12.68 trillion peak seen in 2008.

Report: How Bad Are Weather Disasters for Banks?

November 9, 2021

The Federal Reserve Bank of New York published a staff report titled, "How Bad Are Weather Disasters for Banks?"

New York Fed to Host Virtual Conference on Transatlantic Economic Policy Responses to the Pandemic and the Road to Recovery

November 9, 2021

The European Commission, Federal Reserve Bank of New York and Center for Economic Policy Research are jointly holding a virtual conference on Transatlantic Economic Policy Responses to the Pandemic and the Road to Recovery on November 18, 2021. The conference will examine the economic policy response to the pandemic in the U.S. and the EU, and will also look at common post-pandemic policy challenges for the transatlantic economy.

Securities and Exchange Commission

Statement: DeFi Risks, Regulations, and Opportunities

November 9, 2021

Securities and Exchange Commission Commissioner Caroline A. Crenshaw gave a statement titled, "DeFi Risks, Regulations, and Opportunities."

Risk Alert: Observations from Examinations of Advisers that Provide Electronic Investment Advice

November 9, 2021

The Securities and Exchange Commission Division of Examinations (Division) published a Risk Alert in response to its recently observed significant increase in the number of investment advisers choosing to provide automated digital investment advisory services to their clients. The purpose of the Risk Alert is to raise awareness of certain compliance issues the Division observed while conducting examinations of advisers providing, or claiming to provide, robo-advisory services, including advisers that operate, recommend, or sponsor discretionary investment advisory programs.

Remarks: Interagency Convening on Equitable Economic Growth

November 9, 2021

Securities and Exchange Commission Chair Gary Gensler gave remarks at the Interagency Convening on Equitable Economic Growth.

Financial Crimes Enforcement Network

FinCEN Stakeholders Address Bank Secrecy Act Suspicious Activity Reporting Statistics

November 9, 2021

The Financial Crimes Enforcement Network (FinCEN) convened a virtual FinCEN Exchange with members of the financial industry and law enforcement to discuss FinCEN's analysis of suspicious activity reporting (SAR) with a transactional nexus to Alabama, Florida, Georgia, Mississippi, and South Carolina. Topics of discussion included an analysis of certain Bank Secrecy Act filing statistics for SARs and an analysis of SAR filings related to recent FinCEN advisories.

State Agencies

New York State Department of Financial Services

Governor Hochul Signs Consumer Protection Legislative Package

November 8, 2021

Governor Hochul signed a legislative package relating to consumer protection. Legislation S.153/A.2382 enacts the Consumer Credit Fairness Act, which will protect consumers from abusive debt collection, as many practices relate to old debts being sued on, debt from credit card issuers being resold to other creditors, and minimal information being provided to debt purchasers.

International

European Banking Authority

EBA Publishes Guidelines on Recovery Plan Indicators

November 9, 2021

The European Banking Authority published Guidelines on recovery plan indicators. The Guidelines establish a common EU approach for developing the framework of recovery plan indicators, providing additional guidance on indicators' calibration, monitoring and breaches notifications. The guidelines aim at strengthening the quality of recovery indicators framework and contributing to effective crisis preparedness of institutions.

Bank of England

Statement: Central Bank Digital Currency Next Steps

November 9, 2021

Economic Secretary to the Treasury John Glen gave a statement on the next steps on the exploration of a UK Central Bank Digital Currency.

FICC Markets Standards Board, Bank of England and Financial Conduct Authority Agree Memorandum of Understanding

November 9, 2021

The FICC Markets Standards Board (FMSB), Bank of England (BoE), and Financial Conduct Authority (FCA) announced signing a tri-party Memorandum of Understanding. The MoU sets out a high-level framework formalizing the continuing cooperation between FMSB, the BoE, and FCA in relation to the delivery of FMSB's primary objectives as recommended in the Fair and Effective Markets Review Final Report.

Administration Changes

Appointments/Confirmation Hearings

U.S. Department of the Treasury - Janet Yellen (effective January 26, 2021)

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

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

U.S. Department of Education - Dr. Miguel Cardona (effective March 2, 2021)