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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Tuesday, March 1, 2022

March 01, 2022

FedACTion Task Force

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Major Developments

Treasury Prohibits Transactions with Central Bank of Russia and Imposes Sanctions on Key Sources of Russia's Wealth

February 28, 2022

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) prohibited United States persons from engaging in transactions with the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation. This action effectively immobilizes any assets of the Central Bank of the Russian Federation held in the United States or by U.S. persons, wherever located.

Congress

U.S. House of Representatives

Committee on Small Business

Committee Announces March Hearings

February 28, 2022

The House Small Business Committee announced several committee hearings throughout March:- Tuesday, March 1, 2022- 10 A.M.- Hybrid Hearing: Competition and the Small Business Landscape: Fair Competition and a Level Playing Field

- Wednesday, March 2, 2022- 11 A.M.- Hybrid Hearing: The 8(a) Program: Overview and Next Steps to Promote Small Business Success (Subcommittee on Contracting and Infrastructure)

- Tuesday, March 8, 2022- 10 A.M.- Hybrid Hearing: Overview of the Small Business Innovation Research and Small Business Technology Transfer Programs

- Wednesday, March 9, 2022- 10 A.M.- Hybrid Hearing: Skill, Upskill, and Reskill: Analyzing New Investments in Workforce Development (Subcommittee on Innovation, Economic Workforce Development)

- Wednesday, March 16, 2022- 10 A.M.- Hybrid Hearing: An Empirical Review of the Paycheck Protection Program (Subcommittee on Oversight, Investigations, and Regulations)

Federal Agencies

U.S. Department of the Treasury

Preliminary Report on Foreign Holdings of U.S. Securities at End-June 2021

February 28, 2022

Preliminary data from the June 2021 benchmark survey of foreign portfolio holdings of U.S. securities were released today on the Treasury website. Final survey results, which will include additional detail as well as possible revisions to the preliminary data, will be reported on April 29, 2022. The survey was undertaken jointly by Treasury, the Federal Reserve Bank of New York, and the Board of Governors of the Federal Reserve System. The next annual survey will cover holdings at the end of June 2022; preliminary data are expected to be released by February 28, 2023.

Treasury to Host Virtual Roundtable on State and Local Efforts to Address Climate Change

February 28, 2022

The U.S. Department of the Treasury will host a virtual roundtable, entitled The Climate Transition: Federal Policy and State and Local Government Best Practices, on Thursday, March 3, 2022. The roundtable will open at 10:00 AM ET with remarks from U.S. Secretary of the Treasury Janet L. Yellen. Following the Secretary's remarks, White House Senior Advisor and Infrastructure Implementation Coordinator Mitch Landrieu will deliver remarks on the Bipartisan Infrastructure Law. Climate Counselor to the Secretary John Morton will then convene a panel of senior Administration officials to discuss key policies that support state and local governments in the climate transition.

Federal Reserve Bank of New York

A New Approach to Assess Inflation Expectations Anchoring Using Strategic Surveys

February 28, 2022

The Federal Reserve Bank of New York proposes a new approach to assessing the anchoring of inflation expectations using "strategic surveys." Households' revisions will be measured in long-run inflation expectations after they are presented with different economic scenarios. A key advantage of this approach is that it provides a causal interpretation in terms of how inflation events affect long-run inflation expectations. The method was implemented in the summer of 2019 and the spring-summer of 2021 when the anchoring of long-run inflation expectations was in question. The risk of unanchoring of expectations was reasonably low in both periods, and that long-run inflation expectations were essentially as well anchored in August 2021 as in July 2019, before the COVID-19 pandemic.

Office of the Comptroller of the Currency

Revised Licensing Booklets: Revised Comptroller's Licensing Manual Booklets

February 28, 2022

The Office of the Comptroller of the Currency (OCC) issued revised booklets under the Comptroller's Licensing Manual addressing "Articles of Association, Charter, and Bylaw Amendments," "Fiduciary Powers," "Subordinated Debt," and "Subsidiaries and Equity Investments." The revised booklets replace booklets of the same title issued between June 2017 and January 2019. The revised booklets reflect recent changes to 12 C.F.R. Part 5, make corrections when necessary, and contain updated guidance.

Consumer Financial Protection Bureau

CFPB Moves to Thwart Illegal Auto Repossessions

February 28, 2022

The Consumer Financial Protection Bureau (CFPB) is moving to thwart illegal repossessions in the heated auto market. A compliance bulletin issued today reveals conduct observed during CFPB examinations and enforcement actions, including the illegal seizure of cars, sloppy record keeping, unreliable balance statements, and ransom for personal property.

FINRA

U.S. Imposes Sanctions on Russian Entities and Individuals

February 28, 2022

The U.S. government has imposed sanctions in response to Russia's actions in Ukraine. FINRA is issuing this Notice to provide member firms with information about these recent actions. FINRA encourages member firms to continue to monitor the Department of Treasury's Office of Foreign Asset Control website for relevant information.

National Credit Union Administration

Remarks of Todd M. Harper Chairman of the National Credit Union Administration before the CUNA Governmental Affairs Conference

February 28, 2022

Todd M. Harper, Chairman of the National Credit Union Administration, provided remarks before the CUNA Governmental Affairs Conference addressing what the NCUA has recently achieved, what comes next for credit unions and the NCUA, and financial-wellness tools for moving forward.

U.S. Small Business Administration

SBA OIG Report 22-09: SBA's Paycheck Protection Program Loan Review Processes

February 28, 2022

The Office of Inspector General (OIG) conducted an evaluation to assess the U.S. Small Business Administration's processes for reviewing Paycheck Protection Program loans for eligibility and forgiveness.

U.S. Department of Housing and Urban Development/Federal Housing Administration

HUD Secretary Fudge Joins DOE Secretary Granholm to Announce Better Climate Challenge

February 28, 2022

Housing and Urban Development Secretary Marcia L. Fudge joined Department of Energy (DOE) Secretary Jennifer M. Granholm and White House National Climate Advisor Gina McCarthy to announce the inaugural Better Climate Challenge, a private-public partnership led by DOE with over 80 American businesses and organizations that have signed on to ambitious carbon reduction goals. The Better Climate Challenge also encourages partners to share pathways to de-carbonization among each other to multiply the impact of their innovative strategies to decarbonize.

International

European Commission

EU coordinating emergency assistance and steps up humanitarian aid for Ukraine

February 28, 2022

As the humanitarian situation in Ukraine worsens and neighboring countries receive Ukrainians fleeing their country, the European Commission is working on all fronts to provide emergency assistance.

Antitrust: Commission consults stakeholders on sustainability agreements in agriculture

February 28, 2022

The European Commission is inviting stakeholders such as primary producers, processors, manufacturers, wholesalers, retailers and input providers to share their experience with agreements aimed at achieving sustainability objectives in the agri-food supply chains. The feedback will help the Commission to draft guidelines on a new derogation exempting sustainability agreements in the field of agriculture from competition rules under certain conditions.

Administration Changes

Vacancies

Federal Reserve Board

  • Vice Chair for Supervision – Sarah Bloom Raskin nominated January 14, 2022 (nomination hearing held on February 3, 2022)
  • Governor – Lisa Cook nominated January 14, 2022
    (nomination hearing held on February 3, 2022)
  • Governor – Phillip Jefferson, nominated January 14, 2022
    (nomination hearing held on February 3, 2022)

Federal Deposit Insurance Corporation

  • Chair – Vacant (Martin Gruenberg serves as Acting Chair)
  • Vice Chairman

Office of the Comptroller of the Currency

  • Comptroller – Vacant (Michael Hsu serves as Acting Comptroller)

Commodity Futures Commission

  • Three (3) Commissioner Vacancies

Appointments/Confirmation Hearings

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

Federal Reserve Board

Federal Reserve Bank of New York

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 – Rostin Behnam (effective December 17, 2021)

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 – Sandra L. Thompson

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.