Washington Report 360 | July 17, 2020

Key Highlights

• Large U.S. banks set aside billions in reserves to prepare for potential loan losses, signaling regulatory attention to and expansion on credit servicing and credit quality.
• OCC plans to propose a new rule that would identify whether a bank or another fintech firm is the actual lender on the loan, anticipated to impact bank-fintech partnerships.
  

Financial services regulatory and policy news

• Banking
  • FRB
    • Modified the Main Street Lending Program to provide greater access to credit for nonprofit organizations
    • Temporarily modified its rules so that certain bank directors and shareholders can apply to their banks for PPP loans for their small businesses
  • OCC:
    • Intends to propose a new rule that clarifies when a bank is the actual lender on a loan, or when another party such as a fintech firm is
    • Launched Project REACh to promote financial inclusion through greater access to credit and capital
  • CFPB:
    • Outlined in a webcast its COVID-19 response that ranges from issuing education resources to supporting government agencies to deliver Economic Impact Payments
    • Launched a pilot program for firms to solicit advisory opinions on uncertain requirements in CFPB regulations
    • Released
      • Results from its Making Ends Meet survey,
      • A report on credit builder loans,
      • A study of credit records of young servicemembers and civilians, and
      • A web tool to understand the total cost of attending college
  • House Select Subcommittee on the Coronavirus Crisis:
    • Will hear testimony from former Federal Reserve Chairs Ben Bernanke and Janet Yellen on the federal response to the economic crisis
• Capital markets
  • SEC:
    • Proposed to amend Form 13F to update the reporting for institutional investment managers
  • FINRA:
    • Requested comment on proposed changes to TRACE reporting related to delayed Treasury spot and portfolio trades; comment period ends September 14
• Other
  • BIS:
    • Committee on Payments and Market Infrastructure's report identifies steps to enhance cross border payments
  • FTC:
    • Launched a new tool that explores data about problems military consumers may experience in the marketplace
  • FSB:
    • Published a letter to G20 Financial Ministers and Central Bank Governors setting out action to maintain financial stability during COVID

Industry news

• Regulators urge big push to ditch Libor by end 2021
• Large banks stockpile $28 billion to cover potential loan losses
• US banks told not to use Covid-19 as cover for branch closures
• Dodd-Frank at 10: How regulation has (and hasn't) changed since law's passage
• Biggest Banks Gain $10 Billion on Fed Moves to Open Debt Markets
• Fed officials warn on 'thick fog' ahead for U.S. economy as recovery concerns deepen
• Shadow bank weaknesses forced Fed's market rescue, Quarles says
• FHFA's challenge: Convincing Supreme Court it's not CFPB
• EU’s Top Court Restricts Personal-Data Transfers to U.S., Citing Surveillance Concerns

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