Staff Report on Revising the Framework for Non-Bank Emergency Lending

This staff report examines the Federal Reserve’s (the “Fed’s”) role in emergency lending to non-banks in light of its response to the COVID-19 pandemic and proposes a new framework for such lending.   Part I outlines the current framework governing emergency lending to non-banks, with a focus on the restrictions adopted in the Dodd-Frank Act following […]

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Committee Statement on the Administrative Procedure Act and Banking Supervision

In this statement, the Committee on Capital Markets Regulation (the “Committee”) reaffirms its long-standing position that the Administrative Procedure Act (the “APA”) fully applies to supervisory and regulatory actions by the U.S. Federal Reserve Board (the “Fed”). In particular, we review a forthcoming  law review article, Bank Supervision and Administrative Law, by former Federal Reserve Governor […]

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Committee Statement on Enhancing U.S. Equity Market Structure for Retail Investors

In this statement, the Committee on Capital Markets Regulation (the “Committee”) describes the regulation and functioning of U.S. equity market structure with a focus on retail investors, and it sets forth policy recommendations that would provide additional transparency for retail investors and enhance competition among broker-dealers and exchanges.   First, we consider whether the SEC […]

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Staff Report on Bank Stress Testing & Underserved Borrowers

In this staff report, the Committee on Capital Markets Regulations (the “Committee”) examines how certain aspects of the Federal Reserve’s bank stress testing regime have adverse impacts on underserved borrowers.   First, we review the Fed’s approach to its balance sheet assumptions in its stress test, summarizing the methodology through which the Fed projects loan […]

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

On August 19, 2021, the Committee staff released an update on the monetary sanctions imposed during calendar year 2020 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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SEC Staff Non-Enforcement of Proxy Advisor Regulations

The Committee on Capital Markets Regulation (the “Committee”) is concerned with the June 1 statement by the staff of the Division of Corporation Finance of the U.S. Securities and Exchange Commission (the “SEC”) clarifying that it would not recommend an enforcement action against a proxy advisor that fails to comply with certain recently adopted rule […]

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Report on Pandemic Business Interruption Insurance

In this report, the Committee on Capital Markets Regulation (the “Committee”) assesses the role of business interruption insurance (“BII”) during the COVID-19 pandemic and evaluates proposals to reform BII so that U.S. businesses can insure against losses from future pandemics. In Part I of this report, we review the experience of BII during the COVID-19 […]

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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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