Report on Credit Rating Agencies during COVID-19

In this staff report, the Committee on Capital Markets Regulation (the “Committee”) evaluates the performance of the credit rating agencies during the COVID-19 crisis. The report concludes that the agencies responded to evolving market and economic conditions promptly and performed their role well as independent providers of forward-looking information. The report proceeds as follows. Section 1 […]

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Money Market Funds and 2020 COVID Crisis

This report by the Committee on Capital Markets Regulation (the “Committee”) examines the role of money market funds (“MMFs”) in the March 2020 COVID crisis and sets forth reforms that would enhance the liquidity of MMFs that primarily invest in short-term private debt securities (“prime MMFs”). The Committee’s recommendations are intended to significantly reduce the […]

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UST Market During Covid Crisis

In this report, the Committee on Capital Markets Regulation (the “Committee”) describes the turmoil in the U.S. Treasury market during March 2020, with a focus on the unexpected rise in Treasury yields, the illiquidity in the Treasury market and the subsequent intervention by the Federal Reserve to stabilize the market. We then describe the market […]

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Letter to AMAC on Retail Access to PE: Warehousing

On March 18, 2021, the Committee submitted a second letter to the SEC’s Asset Management Advisory Committee (“AMAC”) and its Private Investments Subcommittee regarding the public offering of registered closed-end funds of private equity funds. The letter provides AMAC with additional information regarding how these registered closed-end funds of private equity funds could list on […]

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Committee Submits Comment Letter on FTC’s Premerger Notification Proposal

On January 14, the Committee submitted a comment letter to the Federal Trade Commission (the “FTC”) on its proposed changes to the premerger notification rules (the “HSR Act Proposal”), which would subject registered investment companies (“RICs”) and other investment entities making certain investments to a thirty-day transaction delay, filing fees, and increased reporting obligations under […]

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Committee Submits Letter to AMAC on Retail Investor Access to Registered Funds of Private Equity Funds

On January 13, 2021, the Committee submitted a letter to the SEC’s Asset Management Advisory Committee (“AMAC”) and its Private Investments Subcommittee on behalf of sponsors of registered closed-end funds that invest more than 15% of their assets in private equity funds (such funds, “registered funds of private funds”).   Historically, the staff of the […]

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Assessment of Empirical Research on FTTs

In this report, the Committee on Capital Markets Regulation (the “Committee”) describes the turmoil in the U.S. Treasury market during March 2020, with a focus on the unexpected rise in Treasury yields, the illiquidity in the Treasury market and the subsequent intervention by the Federal Reserve to stabilize the market. We then describe the market […]

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Treasury and Fed Lending Programs: An Assessment and Call for Continued Support for SMEs

The Committee’s report presents a data-based overview and analysis of key U.S. government interventions deployed in response to the COVID-19 pandemic to stabilize financial markets and support the provision of credit to the real economy. We find that the U.S. Treasury Department and Federal Reserve lending facilities were successful at stabilizing the U.S. financial system […]

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Committee Staff Releases Update on Monetary Sanctions Imposed by U.S. Enforcement Agencies

On November 12, 2020, the Committee staff released an update on the monetary sanctions imposed during calendar year 2019 by public enforcement agencies with oversight of the U.S. financial system. This statement updates the staff report on “Rationalizing Enforcement in the U.S. Financial System” released in June 2018, which reviewed enforcement actions brought and monetary […]

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Stress Testing During a Pandemic: Enhancing Transparency & Financial Stability

The Committee on Capital Markets Regulation (the “Committee”) strongly supports the use of regulatory stress tests to ensure that banks have sufficient capital to absorb losses under adverse economic conditions. The severe economic effects of COVID-19 have further heightened the importance of stress testing to ensure the stability of the banking system. In this statement, […]

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