Key Highlights
- The FRB announced that temporary and other restrictions on BHC dividends and share repurchases will end after June 30, 2021 for firms with capital levels above those required by the current round of stress tests.
- The FRB formed a new group to analyze climate-related risks from a macroprudential perspective; the group will complement the Supervision Climate Committee, which will focus on microprudential issues. The FRB Chair testified the FRB is in the early stages of understanding the risks to regulated financial institutions from climate change.
- The FRB stated that industry participants should expect panel-based USD LIBOR to not continue past June 2023 but reiterated that use of LIBOR in new contracts should not continue after 2021.
- Congress approved legislation to extend the PPP through June 30, 2021; applications will be accepted through May 31, 2021 and processing will continue for the following 30 days.
- UDAAP/UDAP and debt collection are highlighted by CFPB and FTC; FTC formed a new group within its Office of General Counsel to focus on UDAP.
- The NY DFS proposed guidance for insurance companies on managing financial risks of climate change
Financial services regulatory and policy news
Banking
- Federal banking agencies (FRB, OCC, FDIC):
- Published an interim final rule to support capital investment under Treasury’s Emergency Capital Investment Program
- FRB:
- Spoke about financial stability implications of climate change; published a related research report
- Made keynote remarks at a symposium on the end of LIBOR
- Spoke about the prospects for small businesses
- Announced temporary restrictions on BHC dividends and share repurchases will end after June 30
- Published a research paper on “Gender and Social Networks on Bank Boards”FDIC:
- CFPB:
- Submitted annual reports to Congress on:
- Fair Debt Collection Practices
- Consumer complaints
Capital Markets
- SEC:
- Spoke about ESG disclosure and regulation (here and here) at the Asset Management Advisory Committee meeting
- FINRA:
- Released a podcast reviewing the exam and risk monitoring program in 2020
- Issued a research report on older adults and decision making risks
Other
- Congress:
- Passed the PPP Extension Act, which extends the PPP through June 30, 2021
- Conducted hearings in the House Financial Services Committee and the Senate Banking Committee with Treasury and FRB on response to the pandemic
- Treasury and DOL:
- Awarded funding for the first social impact partnership project
- SBA:
- Increased its EIDL lending limit
- FTC:
- Provided an annual summary of its debt collection activities to CFPB
- Created a new rulemaking group to focus on UDAP
- HUD:
- Provided $450 million in relief funding for affordable housing activities by Tribal communities
- NY FRB:
- ARRC:
- Published a progress report on the transition from LIBOR
- Announced it will not recommend a forward-looking SOFR term rate by mid-2021
- Released supplemental recommendations for fallback language on business loans
- BIS:
- Published reports on:
- Asset managers, market liquidity, and bank regulation
- Multi-CBDC arrangements and the future of cross-border payments
- Announced the winners of its ISO 20022 and API hackathon
Insurance
- NY DFS:
- Proposed guidance to insurers on managing financial risks from climate change
Industry news headlines
(Some links may require subscription)
- Illinois caps consumer rates at 36%, adopts state-level CRA (American Banker)
- Fed, Treasury vow to evaluate climate change risk to financial system (American Banker)
- ESG Disclosure Rules From Europe Challenge U.S. Fund Managers (WSJ)
- Companies Offer Investors a Glimpse at Employee Turnover (WSJ)
- Exclusive: U.S. regulator opens inquiry into Wall Street's blank check IPO frenzy - sources (Reuters)
- Carbon Tax Sidelined in Biden’s Push on Climate, Taxes (WSJ)
