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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Wednesday, October 25, 2023

October 25, 2023

FedACTion Task Force

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Major Developments

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

Agencies issue final rule to modernize the regulations implementing the Community Reinvestment Act

October 24, 2023

The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency jointly issued a final rule to modernize regulations implementing the Community Reinvestment Act to better achieve the purposes of the law.

Agencies Issue Principles for Climate-Related Financial Risk Management for Large Financial Institutions

October 24, 2023

The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency jointly finalized principles that provide a high–level framework for the safe and sound management of exposures to climate–related financial risks for large financial institutions.

Congress

U.S. Senate

Committee on Banking, Housing, and Urban Affairs

Senators Introduce Bill to Strengthen CFIUS Review Process

October 24, 2023

U.S. Senate Committee on Banking, Housing, and Urban Affairs Ranking Member Tim Scott (R-S.C.) along with Senators Mike Crapo (R-Idaho), Steve Daines (R-Mont.), Mike Rounds (R-S.D.), Bill Hagerty (R-Tenn.), and Katie Britt (R-Ala.) today introduced the Protect Our Bases Act to ensure the Committee on Foreign Investment in the United States can review foreign land purchases near sensitive military, intelligence, and national laboratory sites by requiring member agencies to annually update and review their lists of these sites.

U.S. House of Representatives

Committee on Financial Services

Representatives Send Letter to GAO Regarding Role of U.S. Regulators in Basel Committee, Basel III Endgame Proposals

October 24, 2023

U.S. House Committee on Financial Services Chair Patrick McHenry (NC-10) and Financial Institutions and Monetary Policy Subcommittee Chair Andy Barr (KY-06) are asking the Government Accountability Office to examine the role U.S. federal banking agencies played in work at the Basel Committee on Banking Supervision to develop the recent Basel III Endgame proposal, which calls for massive increases in capital requirements for already well-capitalized U.S. financial institutions.

Federal Agencies

U.S. Department of the Treasury

Opening Remarks by Under Secretary Nelson at Executive Committee Meeting of the Terrorist Financing Targeting Center

October 24, 2023

Under Secretary of the Treasury Brian Nelson gave remarks at the Executive Committee of the Terrorist Financing Targeting Center in Riyadh, Saudi Arabia.

Remarks by Assistant Secretary Steele at the Amazon Web Services (AWS) Gov2Gov Summit on Responsible Artificial Intelligence Innovation for the Public Sector

October 24, 2023

U.S. Department of the Treasury Assistant Secretary for Financial Institutions Graham Steele gave remarks at the Amazon Web Services Gov2Gov Summit on Responsible Artificial Intelligence Innovation for the Public Sector.

Conference of State Bank Supervisors

State Regulators Offer Licensees Tips to Prepare for NMLS Annual Renewal

October 24, 2023

State regulators are encouraging individuals and businesses in the mortgage, money transmission, debt collection and consumer financial services industry to start preparing now for the November 1 start of Nationwide Multistate Licensing System (NMLS) annual license renewal.

State Bank Regulators Update Ransomware Self-Assessment Tool for Banks

October 24, 2023

State regulators, in collaboration with the Bankers' Electronic Crimes Taskforce and the U.S. Secret Service, released an updated Ransomware Self-Assessment Tool (R-SAT) for banks to help mitigate new risks associated with ransomware attacks and identify security gaps.

Federal Deposit Insurance Corporation

FDIC Proposes Regulations Concerning Section 19 of the Federal Deposit Insurance Act

October 24, 2023

The Federal Deposit Insurance Corporation issued a proposal that would revise 12 C.F.R. part 303, subpart L, and part 308, subpart M, thereby updating the FDIC's regulations concerning section 19 of the Federal Deposit Insurance Act to conform with the Fair Hiring in Banking Act, a person convicted of any criminal offense involving dishonesty, breach of trust, or money laundering, or who has entered into a pretrial diversion or similar program in connection with a prosecution for such an offense.

OIG Report: Material Loss Review of Signature Bank of New York

October 24, 2023

The Federal Deposit Insurance Corporation Office of Inspector General released its material loss report on the failure of Signature Bank of New York.

Securities and Exchange Commission

Remarks at New York City Bar Association Compliance Institute

October 24, 2023

Securities and Exchange Commission Division of Enforcement Director Gurbir S. Grewal gave remarks at the New York City Bar Association Compliance Institute.

Freddie Mac

Economic, Housing and Mortgage Market Outlook – October 2023

October 24, 2023

Freddie Mac released its Economic, Housing and Mortgage Market Outlook for October 2023.

International

Bank of England Prudential Regulation Authority
UK Financial Conduct Authority

Policy Statement: Remuneration: Ratio between fixed and variable components of total remuneration ('bonus cap')

October 24, 2023

The Prudential Regulation Authority and the Financial Conduct Authority published a joint policy statement entitled, "Remuneration: Ratio between fixed and variable components of total remuneration ('bonus cap')."

Bank of England Prudential Regulation Authority

Policy Statement: Updating UK Technical Standards on the identification of global systemically important institutions (G-SIIs)

October 24, 2023

The Prudential Regulation Authority published a policy statement entitled, "Updating UK Technical Standards on the identification of global systemically important institutions (G-SIIs)."

UK Financial Conduct Authority

Review of rules extending SME access to the Financial Ombudsman Service

October 24, 2023

The Financial Conduct Authority released the results of its review of rules extending access to the Financial Ombudsman Service for small and medium-sized enterprises.

Administration Changes

Vacancies

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 (sworn in September 13, 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 September 13, 2022)
  • Governor Adriana D. Kugler (sworn in September 13, 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.