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Financial Regulation Daily Update – Friday March 9, 2024 | Paul Hastings LLP

Important developmentsFederal Reserve Board

The Federal Reserve Board announces a final rule that updates risk management requirements for systemically important financial market utilities supervised by the Board

March 8, 2024

The Federal Reserve Board announced a final rule that updates risk management requirements for systemically important financial market utilities supervised by the Board.

Federal agencies

US Treasury Department

The U.S. Treasury Department and state insurance regulators are launching a coordinated effort to collect homeowners insurance data to assess the impact of climate risk on U.S. insurance markets

March 8, 2024

The U.S. Treasury Department's Federal Insurance Office has advanced its insurance data collection efforts to better understand the impact of climate-related financial risks on the insurance sector by launching a first-of-its-kind collaboration with state insurance regulators and the National Association of Insurance Commissioners.

OFR Working Paper: The Value of Credit Relationships

March 8, 2024

The Office of Financial Research has published a working paper entitled “The Value of Lending Relationships.”

Federal Reserve Bank of New York

Report: Drivers of the dollar share of foreign exchange reserves

March 8, 2024

The Federal Reserve Bank of New York released a staff report entitled “Drivers of Dollar Share in Foreign Exchange Reserves.”

Report: Nonlinear Business Dynamics

March 8, 2024

The Federal Reserve Bank of New York has released a staff report titled “Nonlinear Firm Dynamics.”

Blog: Stablecoins and Crypto Shocks

March 8, 2024

The Federal Reserve Bank of New York published a Liberty Street Economics blog post titled “Stablecoins and Crypto Shocks.”

Statement on the publication of the reference interest rates on Friday, March 29, 2024

March 8, 2024

The Securities Industry and Financial Markets Association (SIFMA) recommends a complete market shutdown on Friday, March 29, 2024, which is widely viewed as a holiday in the repo market.

Statement regarding Open Market Desk operations on Friday, March 29, 2024

March 8, 2024

Due to the Securities Industry and Financial Markets Association's recommendation to completely close the market on Friday, March 29, 2024, the Open Market Trading Desk (Desk) does not intend to conduct any trades on that day.

Securities and Exchange Commission

Representation of the data elements of the cash flow statement

March 8, 2024

The Division of Economic and Risk Analysis of the Securities and Exchange Commission has reviewed certain Forms 10-Q and 10-K filed in 2023 to assess whether the presentation structure of the data elements of the statement of cash flows (e.g., parent and descendant relationship) of the Applicant is organized correctly.

Commodity Futures Trading Commission

The CFTC's Global Markets Advisory Committee proposes three recommendations

March 7, 2024

The Commodity Futures Trading Commission's Global Markets Advisory Committee has put forward three new recommendations to promote the resilience and efficiency of U.S. Treasury markets, provide resources for the upcoming transition to T+1 securities settlement, and publish an initial taxonomy for digital assets, to support US regulatory clarity and international focus.

Consumer Financial Protection Bureau

Blog: Garbage fees drive up housing costs. The CFPB is seeking input on an area of ​​concern

March 8, 2024

The Consumer Financial Protection Bureau has a blog post titled “Junk Fees Drive Up Housing Costs. The CFPB wants to hear from you.”

FINRA

FINRA adopts changes to improve post-trade transparency in the U.S. Treasury market

March 8, 2024

FINRA adopted changes to disseminate individual end-of-day and historical transactions in active U.S. Treasury securities and establish appropriate fees for members and other professionals who elect to subscribe to the new data set.

US Department of Labor

BLS publishes jobs report for February 2024

March 8, 2024

The US Bureau of Labor Statistics has released the Employment Situation Report for February 2024.

Institute for Banking Policy

Blog: An analysis of credit card pricing differences between large and small issuers

March 8, 2024

The Bank Policy Institute published a blog post titled “An Analysis of Credit Card Pricing Disparities Between Large and Small Issuers.”

BPI statement on the anniversary of the failure of SVB

March 8, 2024

Greg Baer, ​​president and CEO of the Bank Policy Institute, released a statement ahead of the one-year anniversary of Silicon Valley Bank's failure.

International

European Banking Authority

The EBA is advising on guidelines for redemption plans under the Crypto Assets Markets Regulation

March 8, 2024

The European Banking Authority has launched a consultation on the guidelines for the plans for the orderly redemption of asset-referenced tokens or e-money tokens in the event of the issuer's failure to comply with its obligations under the Markets in Crypto-Assets Regulation.

Bank of England

Speech: The proposed UK regulation for critical third parties

March 8, 2024

Gareth Truran, Director of Supervisory Policy at the Bank of England, gave a speech entitled “The Proposed UK Regime for Critical Third Parties” at the Tech UK Summit on Operational Resilience for Critical Third Parties.

Working paper: Battle for markups: Conflict inflation and the desired channel of monetary policy transmission

March 8, 2024

The Bank of England published a working paper entitled “Battle of the Markups: Conflict Inflation and the Aspirational Channel of Monetary Policy Transmission”.

Working paper: Energy and climate policy in a UK DSGE model

March 8, 2024

The Bank of England published a working paper entitled “Energy and climate policy in a UK DSGE model”.

Working paper: Optimal quantitative easing and tightening

March 8, 2024

The Bank of England published a working paper entitled “Optimal quantitative easing and tightening”.

Financial Supervisory Authority

Report: Using Synthetic Data in Financial Services

March 8, 2024

The Financial Conduct Authority has published a report entitled “Report: Using Synthetic Data in Financial Services”.

House of Commons Finance Committee report “Sexism in the City”.

March 8, 2024

The Financial Conduct Authority issued a statement on the House of Commons Finance Committee report “Sexism in the City”.

Administrative changes

Job offers

Office of the Comptroller of the Currency

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

Appointments/Confirmation Hearings

US Treasury – Janet Yellen (effective January 26, 2021)

Federal Reserve Board – Jerome H. Powell (effective May 23, 2022)

  • Vice Chairman Phillip N. Jefferson (sworn in September 13, 2023)
  • Vice Chairman for Oversight Michael Barr (sworn in July 19, 2022)
  • Governor Michelle W. Bowman (sworn in November 26, 2018)
  • Governor Christopher J. Waller (sworn in December 18, 2020)
  • Governor Lisa D. Cook (sworn in September 13, 2022)
  • Governor Adriana D. Kugler (sworn in September 13, 2023)

Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)

Federal Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)

Federal Deposit Insurance Corporation – Martin Grünberg (valid from January 5, 2023)

  • Vice Chairman Travis Hill (sworn in January 5, 2023)
  • Director Jonathan McKernan (sworn in January 5, 2023)
  • Director Michael Hsu (Acting Comptroller of the Currency)
  • Director Rohit Chopra (Director of the Consumer Financial Protection Bureau)

Office of the Comptroller of the Currency – Michael Hsu (acting auditor, effective May 10, 2021)

Securities and Exchange Commission – Gary Gensler (effective April 17, 2021)

Commodity Futures Trading Commission – Rostin Behnam (valid from December 17, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (effective October 12, 2021)

National Credit Union Administration – Todd M. Harper (effective January 20, 2021)

Small business administration – Isabella Casillas Guzman (valid from March 16, 2021)

U.S. Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Federal Agency for Housing Financing – Sandra L. Thompson (effective June 22, 2022)

US Department of Education – Dr. Miguel Cardona (valid from March 2, 2021)

Financial Crime Enforcement Network – Andrea Gacki (valid from July 13, 2023)

PH client notifications

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 on April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Entered into force on June 5, 2020.

Click here to view the full text Consolidated Appropriations Act, 2021, Entered into force on December 27, 2020.

Click here to view the full text of the 2021 American Rescue Plan, Effective March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, Effective March 30, 2021.

For a current list of proposed legislation, click here from the Senate Committee on Banking, Housing and Urban Affairs, the Senate Committee on Small Business and Entrepreneurship, the House Committee on Financial Services and the House Committee on Small Business.

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