Key Highlights
- SEC will enhance its focus on climate-related disclosure and begin updating its 2010 guidance.
- Treasury Secretary Yellen suggested Treasury might facilitate FRB efforts with climate-related stress testing, adding that such tests would not have “the same status in terms of limiting payouts and capital requirements” but would assist both regulators and financial services companies in assessing risks.
- In Congressional hearings, FRB Chair Powell indicated the banking agencies were working on a plan for CRA reform, advocated a legislative approach to creating fallbacks for the LIBOR transition, and promoted a move toward standardized climate disclosure.
- The White House issued a fact sheet announcing changes to the SBA PPP, including a 14-day exclusive application period for very small businesses and revised calculations of loan amounts for businesses without employees.
Financial services regulatory and policy news
Banking
- Federal banking agencies (FRB, OCC, FDIC):
- Proposed revisions to the Call Report to reflect the final rules for brokered and sweep deposits
- Issued the 2020 shared national credit review, showing increased credit risk for large, syndicated loans
- Proposed revisions to the Call Report to reflect the final rules for brokered and sweep deposits
- FRB:
- Spoke about:
- economic inclusion in lower-income communities
- full employment in the context of the Federal Reserve’s dual mandate given the Administration’s priorities of social/racial equity
- the role of stress testing in bank supervision
- FDIC:
- Released technical assistance videos to help institutions mitigate fair lending risk
- Released the fourth quarter 2020 Banking Profile finding FDIC-insured institutions reported nearly $60 billion of net income
- Released technical assistance videos to help institutions mitigate fair lending risk
- CFPB:
- Stated it is considering extending the June 1, 2021 compliance date for the General qualified mortgage final rule
Capital Markets
- SEC:
- Released a statement on enhancing focus on climate-related disclosure in public filings
- Spoke about market volatility and the digital economy
- Other
- White House:
- Issued a fact sheet outlining changes to the SBA PPP
- Treasury:
- Opened the funding round of its CDFI rapid response program
- FTC:
- Scheduled a virtual workshop to examine digital “dark patterns”
- FHFA:
- Extended the COVID-19 forbearance period and REO eviction moratoriums through June 2021
- BIS:
- Launched a new hackathon to highlight potential of ISO 20022 payments standard and APIs
- FSB:
- Sent a letter to G20 highlighting FSB’s 2021 work program priorities, including COVID-19-related vulnerabilities, nonbank financial intermediation resilience, and understanding climate-related risks
- IOSCO:
- Highlighted the need for consistent, reliable sustainability reporting with a focus on climate change
- White House:
Insurance
- NAIC:
- Issued RFPs to model valuations for commercial and residential mortgage-backed securities
- IAIS:
- Released its public roadmap setting out its two-year work program
Industry news headlines
(Some links may require subscription)
- Treasury may be able to facilitate climate stress tests on financial firms (WSJ)
- Fed's Powell sees opportunity for joint CRA overhaul (American Banker)
- U.S. banks' climate change disclosure should be standardized over long run, Fed's Powell says (Mlex)
- CFPB goes on hiring spree as it looks to ramp up enforcement (American Banker)
- FINRA top official wants oversights "beyond just the trading activity" (Finance Feeds)
- Federal Reserve financial-services systems disrupted for hours (WSJ)
- Companies put the best face on covid-19’s financial impact (WSJ)
- U.K.’s financial crimes agency wants companies to invest in compliance (WSJ)
- U.K. investment managers push for more diversity on boards (WSJ)
