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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Monday, March 20, 2023

March 20, 2023

FedACTion Task Force

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PH Fintech Tracker on Executive Order for Digital Assets

Major Developments

FINMA approves merger of UBS and Credit Suisse and to provide additional liquidity

March 19, 2023

The Swiss Financial Market Supervisory Authority FINMA has approved the takeover of Credit Suisse by UBS. The Swiss National Bank (SNB) is also granting the merged bank further liquidity assistance that is backed by a default guarantee by the Swiss Confederation.

FDIC sells assets and liabilities of Signature Bank

March 19, 2023

The Federal Deposit Insurance Corporation (FDIC) entered into a purchase and assumption agreement for substantially all deposits and certain loan portfolios of Signature Bridge Bank, National Association, by Flagstar Bank, National Association. Approximately $4 billion in deposits related to the former Signature Bank's digital banking business were not assumed by Flagstar Bank and are being paid out by the FDIC.

Federal Reserve Board

Coordinated central bank action to enhance the provision of U.S. dollar liquidity

March 19, 2023

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Board of Governors of the Federal Reserve System (Federal Reserve), and the SNB announced a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.

Bank of England

Market Notice: Enhancements to the provision of US dollar repo operations

March 19, 2023

The Bank of England, in coordination with other central banks, has decided to enhance the provision of liquidity via the standing US dollar liquidity swap line arrangements.

Congress

U.S. House of Representatives

Committee on Financial Services

Government Accountability Office Urged to Conduct Immediate Study and Investigation into Recent Bank Failures

March 17, 2023

Leadership of the House Financial Services Committee sent a letter to the Government and Accountability Office (GAO) calling on the GAO to begin a study and investigation into the recent collapse of Silicon Valley Bank (SVB) and Signature Bank.

First Hearing on Silicon Valley Bank and Signature Bank Failures to be held March 29, 2023

March 19, 2023

Leadership of the House Financial Services Committee announced a bipartisan hearing with federal financial regulators in response to the failures of SVB and Signature Bank to be held on March 29, 2023.

FDIC urged to Ensure California Communities Remain Supported Through Silicon Valley Bank's Housing, Community Reinvestment Plan

March 18, 2023

Congresswoman Maxine Waters (D-CA), Ranking Member of the House Financial Services Committee, sent a letter to the FDIC urging the agency take steps to ensure the continued implementation of the SVB Community Benefits Plan – which SVB agreed to in 2021 and is aimed at providing housing, small business, and other community development support to communities in California and Massachusetts – despite the bank's collapse.

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.