Key Highlights
- FHFA adopted a final rule establishing a new regulatory capital framework for Fannie Mae and Freddie Mac that will significantly increase their combined total capital requirement (from approximately $35 billion to more than $280 billion).
- Federal Reserve Chair does not favor allowing CARES Act lending facilities to expire in December, though Treasury has declined to extend funding for certain programs, including the Municipal Liquidity Facility and the Main Street Lending Program.
- SEC adopted additional amendments to Regulation S-K disclosures, but two Commissioners dissented in part because the rule did not address climate change; FRB NY conducted a webinar on “the intersection of climate change approaches in the financial sector, and the opportunities for community resilience and inclusion”.
- OCC finalized amendments to its licensing policies and procedures, including certain filing requirements for operating subsidiaries and notices for non-controlling investments
- Focus on LIBOR transition by regulators and Congress.
Financial services regulatory and policy news
Banking
- FRB:
- Released an economics research report entitled “Financial condition and economic activity; Insights from Machine Learning”
- Spoke about the changing structure of mortgage markets and financial stability
- OCC:
- FDIC:
- Announced a competition to select financial advisors for a new “Mission-Driven Bank Fund” to facilitate investment in Minority Depository Institutions and CDFIs
- CFPB
- Announced 2021 dollar thresholds for determining exempt consumer credit and lease transactions and special appraisal requirements for higher-priced mortgage loans
Capital markets
- SEC:
- Released observations from OCIE’s examinations of investment advisors in supervision, compliance, and multiple branch offices
- Spoke about the intersection of climate change risk and financial regulation
- Released a statement on the Wyoming Division of Banking’s “NAL on Custody of Digital Assets and Qualified Custodian Status”
- FINRA:
- Proposed a rule to provide temporary relief to allow remote inspections for calendar years 2020 and 2021
- Released a podcast titled Overlapping Risks, Part 2: Anti-Money Laundering and Elder Exploitation
- Announced a targeted exam on customer waivers and rebates available through Rights of Reinstatement
Other
- SEC:
- Announced Chairman Clayton will step down at year-end
- Adopted additional amendments to Regulation S-K disclosures; dissenting Commissioners statement
- Adopted rules to facilitate electronic submission of documents
- Spoke about “The promise of structured data: True modernization of disclosure effectiveness“
- Released an OCIE statement on recent enforcement matters involving “VIX-related” and other complex ETPs
- Released an OECD report highlighting the United States’ increasing foreign bribery enforcement level
- CFTC:
- Finalized amendments to swap execution facility requirements
- Finalized exemptions from derivatives clearing organization registration
- Extended relief for SEFs from certain block trade requirements
- Extended no-action relief from certain audit trail requirements related to post-execution allocation
- FINRA:
- Proposed a rule change addressing firms with significant history of misconduct
Other
- Treasury:
- Requested the Federal Reserve return unused CARES Act funding for certain emergency facilities, including the Municipal Liquidity Facility and the Main Street Lending Program; Federal Reserve Chair committed to using all tools
- Issued guidance clarifying the deductibility of expenses where a business received a PPP loan
- Congress
- Senate Banking Committee conducted a hearing on oversight of the SEC
- House Financial Services Committee Subcommittee conducted a hearing on “insuring against a pandemic”
- FHFA:
- Finalized a rule establishing a new regulatory capital framework for the GSEs
- Announced multifamily loan purchase caps for the GSEs
- FSB:
- Released two reports highlighting issues from the market turmoil in March
- Released guidance on CCP financial resources for resolution
- Published its 2020 Resolution Report
- NYFRB:
- Hosted an event exploring the financial sector’s role in mitigating climate risk for low-income communities
Industry news headlines
- Fannie, Freddie Overseer Looks to End Federal Control Before Trump Leaves (WSJ)
- Dollar Libor left behind in shift away from tainted benchmark (Financial Times – subscription required)
- Data-security lapses surge in work-from-home era (American Banker)
- CDFIs have untapped potential as game changers for minority-owned businesses (American Banker)
- Banks May Be Office Landlords’ New Problem Tenants (WSJ)
