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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Friday, May 26, 2023

May 26, 2023

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Major Developments

Congress

U.S. House of Representatives

Committee on Financial Services

Hearing: International Financial Institutions in an Era of Great Power Competition

May 25, 2023

The U.S. House Committee on Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions held a hearing entitled, "International Financial Institutions in an Era of Great Power Competition."

Federal Agencies

Federal Reserve Board

Paper: What is Measured in National Accounts?

May 25, 2023

The Federal Reserve Board published a working paper entitled, "What is Measured in National Accounts?"

Federal Reserve Bank of New York

Introducing - Equitable Growth Indicators (EGIs)

May 25, 2023

The New York Fed has just launched the EGIs, which measure disparities across four economic outcomes—inflation, real and nominal earnings, employment, and real and nominal consumer spending.

Federal Reserve Bank of Boston

Paper: The Historical Effects of Banking Distress on Economic Activity

May 25, 2023

The Federal Reserve Bank of Boston published a policy perspective paper entitled, "The Historical Effects of Banking Distress on Economic Activity."

Paper: Non-Bank Financial Institutions and Banks' Fire-Sale Vulnerabilities

May 25, 2023

The Federal Reserve Bank of Boston published a paper entitled, ""Non-Bank Financial Institutions and Banks' Fire-Sale Vulnerabilities."

Office of the Comptroller of the Currency

OCC Revises Bank Enforcement Manual to Address Actions Against Banks with Persistent Weaknesses

May 25, 2023

The Office of the Comptroller of the Currency (OCC) announced revisions to its policies and procedures manual on bank enforcement actions to reflect its consideration of actions against banks that exhibit or fail to correct persistent weaknesses.

Liquidity: Updated Comptroller's Handbook Booklet and Rescissions

May 25, 2023

The OCC issued the updated "Liquidity" booklet of the Comptroller's Handbook, which is prepared for use by OCC examiners in connection with the examination and supervision of banks.

Securities and Exchange Commission

Securities Exchange Commision (SEC_ Updates Exchange Act Rules Q&A Relating to Manipulative and Deceptive Devices and Contrivances: Section 120, Rule 10b5-1

May 25, 2023

The SEC's Division of Corporation Finance updated its Exchange Act Rules Questions & Answers guidance for Manipulative and Deceptive Devices and Contrivances: Section 120, Rule 10b5-1, Questions 120.26, 120.27, and 120.28,

Speech: "Bear in the Woods" Chair Gensler's Remarks before the Investment Company Institute

May 25, 2023

SEC Chair Gary Gensler gave remarks before the Investment Company Institute entitled, ""Bear in the Woods."

FINRA

Report From FINRA Board of Governors Meeting – May 2023

May 25, 2023

FINRA's Board of Governors met on May 17-18 for the second time in 2023. During the meeting, the Board appointed a new public governor, approved FINRA's 2022 Annual Financial Report and added new members to Advisory Committees.

National Credit Union Administration

NCUA Board Approves Proposal to Include Veterans Organizations in Charitable Donation Accounts

May 25, 2023

The National Credit Union Administration Board held its fifth open meeting of 2023 and approved a proposed rule that would amend the charitable donation accounts section of the NCUA's incidental powers regulation. In addition, the NCUA's Chief Financial Officer briefed the Board on the performance of the National Credit Union Share Insurance Fund during the first quarter of 2023.

International

European Commission

Merger Approval: Commission approves the merger between Credit Suisse and UBS

May 25, 2023

The European Commission (Commission) has approved unconditionally, under the EU Merger Regulation, the merger between Credit Suisse and UBS. The Commission concluded that the transaction would not raise competition concerns in the European Economic Area.

European Banking Authority

ESAs propose ESG disclosures for STS securitisations

May 25, 2023

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) jointly submitted to the European Commission Draft Regulatory Technical Standards on the ESG impact disclosure for Simple, Transparent and Standardised securitisations under the Securitisation Regulation.

ESAs consult to amend technical standards on the mapping of ECAIs' credit assessments

May 25, 2023

The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) launched a public consultation to amend the Implementing Regulations on the mapping of credit assessments of External Credit Assessment Institutions for credit risk.

Bank of England

Speech: What's driving inflation: wages, profits, or energy prices?

May 25, 2023

Bank of England Monetary Policy Committee Member Jonathan Haskel gave a speech entitled, "What's driving inflation: wages, profits, or energy prices?"

UK Financial Conduct Authority

Lenders to pay out up to £47m in redress to borrowers in difficulty

May 25, 2023

The Financial Conduct Authority has worked with almost 100 lenders on how they treat borrowers in financial difficulty and has sought significant improvements from many of them.

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)

Financial Crimes Enforcement Network

  • Director – Vacant (Himamauli Das serves as Acting Director)

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 Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)

Federal Deposit Insurance Corporation – Martin Gruenberg (effective January 5, 2023)

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)

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.