Dodd-Frank News Center

Fed provides update on Outstanding Lending Facilities

This story appeared in Bank Digest.                                  

The Federal Reserve Board has filed a periodic report providing updates pursuant to Section 13(3) of the Federal Reserve Act concerning a lending facility established by the Fed in response to economic effects of the COVID-19 pandemic. The Fed is required to submit an initial report regarding each facility established under Section 13(3) and periodic updates at least every 30 days thereafter. This report provides the first periodic update on the Nonprofit Organization New Loan Facility and the Nonprofit Organization Expanded Loan Facility and the next periodic update on the Primary Dealer Credit Facility, the Money Market Mutual Fund Liquidity Facility, the Commercial Paper Funding Facility, the Primary Market Corporate Credit Facility, the Secondary Market Corporate Credit Facility, the Term Asset-Backed Securities Loan Facility, the Municipal Liquidity Facility, the Paycheck Protection Program Liquidity Facility, the Main Street New Loan Facility, the Main Street Expanded Loan Facility, and the Main Street Priority Loan Facility. 

 

OCC clarifies rules regarding withdrawals from CIFs

This story appeared in Bank Digest.

The Special Inspector General for Pandemic Recovery (SIGPR), created by the CARES Act, has submitted a 60-day report, highlighting the work of the Office of Investigations. The report included three recommendations: the Treasury Department has already agreed to the first and will include SIGPR in the list of entities entitled to “timely and unrestricted access” to information from the borrower; SIGPR also recommended that Congress take up the Special Inspector General for Pandemic Recovery Expedited Hiring Authorities Act of 2020 (S. 3751), sponsored by Senator Grassley; and that Congress consider the various CARES Act relief programs, how they overlap, whether the overlap is in the public interest, and whether legislative clarification is warranted.

Fed extends liquidity swap lines and repurchase agreement facility

This story appeared in Bank Digest.

The Federal Reserve Board has extended its temporary U.S. dollar liquidity swap lines and its temporary repurchase agreement facility for foreign and international monetary authorities (FIMA repo facility) through March 31, 2021. These facilities were established in March 2020 to ease strains in global dollar funding markets resulting from the COVID-19 shock and mitigate the effect of such strains on the supply of credit to households and businesses, both domestically and abroad. According to the Fed, the extensions of these facilities will help sustain recent improvements in global U.S. dollar funding markets by maintaining these important liquidity backstops.

Senate bill would provide loans for small businesses affected by pandemic

This story appeared in Bank Digest.

Senator Jack Reed (D-RI) joined a bipartisan coalition of a dozen Senators in cosponsoring the Reviving the Economy Sustainably Towards a Recovery in Twenty-twenty (RESTART) Act (S. 3814). The legislation would create the RESTART Program, a loan program for small- and mid-sized businesses affected by the coronavirus pandemic offering favorable, flexible terms. S. 3814 would extend the loan forgiveness period for paycheck protection program loans made to the hardest hit businesses.

Fed provides update on Outstanding Lending Facilities

This story appeared in Bank Digest.

The Federal Reserve Board has filed a periodic report providing updates pursuant to Section 13(3) of the Federal Reserve Act concerning a lending facility established by the Fed in response to economic effects of the COVID-19 pandemic. The Fed is required to submit an initial report regarding each facility established under Section 13(3) and periodic updates at least every 30 days thereafter. This report provides the third periodic update on the Municipal Liquidity Facility and the Paycheck Protection Program Liquidity Facility. In addition, this report provides the fourth periodic update on the Primary Dealer Credit Facility, the Money Market Mutual Fund Liquidity Facility, the Commercial Paper Funding Facility, the Primary Market Corporate Credit Facility, the Secondary Market Corporate Credit Facility, and the Term Asset-Backed Securities Loan Facility.

 

Fed releases CARES Act Examination Procedures

This story appeared in Bank Digest.

The Federal Reserve Board has notified institutions that it has developed Examination Procedures for the credit reporting and mortgage servicing provisions of the Coronavirus Aid, Relief, and Economic Security Act.

 

Agencies issue examiner guidance for assessing safety and soundness considering COVID-19

This story appeared in Bank Digest.

The Federal Deposit Insurance Corporation, Federal Reserve Board, Office of the Comptroller of the Currency, and National Credit Union Administration, in conjunction with the state bank and credit union regulators, have issued examiner guidance to promote consistency and flexibility in the supervision and examination of financial institutions affected by the COVID-19 pandemic. The interagency guidance instructs examiners to consider the unique, evolving, and potentially long-term nature of the issues confronting institutions due to the COVID-19 pandemic and to exercise appropriate flexibility in their supervisory response.

 

FDIC acts to mitigate effects of participating in PPP and lending facilities

This story appeared in Bank Digest.

The Federal Deposit Insurance Corporation has issued a final rule that mitigates the deposit insurance assessment effects of participating in the Small Business Administration’s Paycheck Protection Program as well as the Paycheck Protection Program Liquidity Facility and Money Market Mutual Fund Liquidity Facility established by the Federal Reserve Board. To ensure that the changes are applied to assessments starting in the second quarter of 2020, the final rule will be effective immediately upon publication in the Federal Register with an application date of April 1, 2020.

 

Treasury and SBA agree to make additional PPP data available

This story appeared in Bank Digest.

The Treasury Department and Small Business Administration have agreed to make public additional data regarding the SBA’s Paycheck Protection Program. The agreement with bipartisan leaders of the Senate Small Business Committee is intended to ensure that the interests of both transparency and protections for small businesses are served. Representative James E. Clyburn (D-SC) issued a statement on the agreement in which he said he was pleased that “Treasury and SBA took a step in the right direction by announcing they will release the recipients of ‘nearly 75 percent of the loan dollars approved.’ However, this is far from the full transparency that American taxpayers deserve.” The SBA has also issued a report providing PPP data disclosed through June 20, 2020, including total dollars approved, loan sizes, lender sizes and types, loans approved by state, top lenders, loans by industry sector, and funds remaining.

CFPB releases FAQs on CARES Act credit reporting requirements

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has released frequently asked questions regarding the consumer reporting requirements of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136). According to a related Bureau blog post, the CARES Act “places important requirements on companies that furnish information to consumer reporting agencies about consumers affected by the COVID-19 pandemic.” The Bureau previously issued a statement informing lenders that they must comply with these requirements.