Federal Reserve Board invites public comment on proposed changes to its Policy on Payment System Risk that governs the provision of intraday credit

Federal Reserve Board invites public comment on proposed changes to its Policy on Payment System Risk that governs the provision of intraday credit

Federal Reserve Board invites public comment on proposed changes to its Policy on Payment System Risk that governs the provision of intraday credit

Read more / Original news source: https://www.federalreserve.gov/newsevents/pressreleases/other20210528a.htm

Lawmakers urge Treasury, IRS to overturn Trump-era rule that fostered “dark money”

A group of Congress members recently urged Treasury Secretary Janet Yellen and Commissioner of Internal Revenue Charles Rettig to reverse Trump administration rules that ended disclosure requirements for tax-exempt groups engaged in political activity.© Shutterstock The lawmakers are calling on the Biden administration to ensure that the IRS can enforce the law and prevent foreign […]

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A group of Congress members recently urged Treasury Secretary Janet Yellen and Commissioner of Internal Revenue Charles Rettig to reverse Trump administration rules that ended disclosure requirements for tax-exempt groups engaged in political activity.

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The lawmakers are calling on the Biden administration to ensure that the IRS can enforce the law and prevent foreign money from influencing elections.

“Eliminating the requirement that tax-exempt groups disclose basic information about the source of their contributions undercuts efforts to enforce prohibitions against foreign spending in U.S. elections and detect other illegal activity. It also undermines the ability of the U.S. government to police the wave of “dark money” that has flooded our political system in the decade since the Supreme Court’s decision in Citizens United v. Federal Elections Commission. According to a study by the nonpartisan Center for Responsive Politics, dark money groups have spent over $1 billion to influence U.S. elections since 2008,” the lawmakers wrote in a letter to Yellen and Rettig.

The letter was signed by 28 members of Congress, including Reps. Ted Deutch (D-FL), Peter Welch (D-VT), David Cicilline (D-RI), and Jason Crow (D-CO),
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“Reinstating this rule is a critical step in preventing special interests and foreign actors from exploiting loopholes at the expense of the American people. We strongly urge you to reconsider the prior administration’s decision and reinstate the requirement that certain tax-exempt organizations engaged in political activity disclose information about their major donors to the IRS,” they added.

A similar letter was sent last month by 38 Senators, led by Sen. Amy Klobuchar (D-MN).

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Read more / Original news source: https://financialregnews.com/lawmakers-urge-treasury-and-irs-to-overturn-trump-era-rule-that-fostered-dark-money/

Senate Finance Committee advances Clean Energy for America Act

The Senate Finance Committee advanced the Clean Energy for America Act, which incentivizes clean energy, clean transportation, and energy efficiency.© Shutterstock The bill passed by a vote of 14-14 and now moves to the full Senate for approval. “Today is a momentous day. For the first time, the Senate Finance Committee has advanced comprehensive clean-energy […]

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The Senate Finance Committee advanced the Clean Energy for America Act, which incentivizes clean energy, clean transportation, and energy efficiency.

© Shutterstock

The bill passed by a vote of 14-14 and now moves to the full Senate for approval.

“Today is a momentous day. For the first time, the Senate Finance Committee has advanced comprehensive clean-energy legislation,” Sen. Ron Wyden (D-OR), chair of the committee, said. “The American people know the climate crisis is an existential threat and strongly support bold action. The Clean Energy for America Act would both put us on the path to achieve our emissions-reductions goals and help create hundreds of thousands of good-paying, clean-energy jobs. As we move forward with President Biden’s jobs and infrastructure agenda, our bill should be the linchpin of our efforts on clean energy. I look forward to working with my colleagues to finally enact clean-energy legislation to build a better future for our children, both in terms of the climate and economy.”

Wyden explained that this bill replaces a “hodgepodge” of 44 different energy tax breaks for a host of fuel sources and technologies.

“These tax breaks have stacked up over the decades like dusty old papers on the messiest desk in the office. The system is anti-competitive and anti-innovation. It puts the government in the role of picking winners and losers by giving some fuels and technologies big, permanent tax breaks while others have short-term, temporary extensions. It has survived in this form for one reason only: Congress has long found it easier to pile on so-called “tax extenders” than clean things up once and for all,” Wyden said.

The Clean Energy for America Act replaces those old rules with a bill to reduce carbon emissions, focusing on three goals — clean energy, clean transportation, and energy efficiency.

“The system on the books today is bad for competition, bad for innovation, and bad for climate. I want to take what I consider to be a classic American approach: use policy to set a big goal and then get out of the way. Let American entrepreneurs and inventors do what they do best. That’s what the Clean Energy for America Act is all about. It’s going big on the proposition that everybody will be interested in new incentives to cut carbon and create high-wage, high-skill jobs at the same time,” Wyden said.

Wyden added that the bill would put the country on a path to a zero net-emissions power sector by 2035 while creating a net gain of more than 600,000 new jobs.

“The reality is, countries around the world have no choice but to turn away from carbon. Clean energy and transportation jobs are coming, it’s just a question of where. If Congress sticks with the 44 breaks of yesteryear, those jobs will go to China, India, Germany, and elsewhere. This committee and the Senate cannot afford to pass up this opportunity,” Wyden said.

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Read more / Original news source: https://financialregnews.com/senate-finance-committee-advances-clean-energy-for-america-act/

Nearly $77B net income reported for FDIC-insured commercial banks, savings institutions in first quarter 2021

Per the Federal Deposit Insurance Corporation’s (FDIC) First Quarter 2021 Quarterly Banking Profile, FDIC-insured commercial banks and savings institutions recorded a net income of $76.8 billion.© Shutterstock The amount reflects an increase of $58.3 billion from a year ago. “Despite continued challenges, the banking industry remains resilient,” FDIC Chairman Jelena McWilliams said. “Strong capital and […]

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Per the Federal Deposit Insurance Corporation’s (FDIC) First Quarter 2021 Quarterly Banking Profile, FDIC-insured commercial banks and savings institutions recorded a net income of $76.8 billion.

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The amount reflects an increase of $58.3 billion from a year ago.

“Despite continued challenges, the banking industry remains resilient,” FDIC Chairman Jelena McWilliams said. “Strong capital and liquidity levels support lending needs and help protect against potential losses.”

The analysis showed the net income also represented an increase of $17.3 billion from fourth quarter 2020. The aggregate negative provision expense enhanced quarterly and annual net income growth.

The report also showed 75 percent of all banks reported annual improvements in quarterly net income, and the share of unprofitable institutions dropped from 7.4 percent a year ago to 3.9 percent. The average net interest margin contracted 57 basis points from a year ago to 2.56 percent, signaling the lowest level on record for the Quarterly Banking Profile. Community banks reported annual net income growth of $3.7 billion, supported by an increase in noninterest income and a decline in provision expense.

The FDIC indicated three new banks opened during the quarter, with 25 institutions merging. No banks failed during the quarter.

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Read more / Original news source: https://financialregnews.com/nearly-77b-net-income-reported-for-fdic-insured-commercial-banks-savings-institutions-in-first-quarter-2021/

SBA initiates Community Navigator Pilot Program

The U.S. Small Business Administration (SBA) has begun accepting applications for the Community Navigator Pilot Program, which targets the smallest socially and economically disadvantaged businesses.© Shutterstock “The Community Navigator Pilot Program is a crucial addition to our SBA programs because it helps us to connect with small businesses that have historically been underserved or left […]

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The U.S. Small Business Administration (SBA) has begun accepting applications for the Community Navigator Pilot Program, which targets the smallest socially and economically disadvantaged businesses.

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“The Community Navigator Pilot Program is a crucial addition to our SBA programs because it helps us to connect with small businesses that have historically been underserved or left behind,” SBA Administrator Isabella Casillas Guzman said. “These businesses – the smallest of the small in rural and urban America, and those owned by women, people of color, or veterans – have suffered the greatest economic loss from this pandemic.”

The SBA would utilize a hub and spoke model approach in local regions nationwide as a means of bridging the gap between local entrepreneurs and the agency’s resources and programs.

“I’ve spoken to small businesses in every corner of Arizona,” Sen. Mark Kelly (D-AZ) said. “Far too many of them, especially tribal and minority-owned businesses and those in rural communities, have been unable to get the support they need. It’s why I fought to include the Community Navigator Program in the American Rescue Plan because it will help meet Arizona small businesses right in their communities, including providing assistance for Spanish-speakers, and get them the relief they need to keep their doors open and workers on payroll.” 

The competitive grant awards would range from $1 million to $5 million for a two-year performance period. Applicants have until July 12, 2021, to submit their applications at grants.gov.

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Read more / Original news source: https://financialregnews.com/sba-initiates-community-navigator-pilot-program/

Agencies Extend Favorable Community Reinvestment Act Consideration of Revitalization Activities in Certain Disaster Areas Affected by Hurricane Maria

The federal bank regulatory agencies today announced they are extending the period for giving favorable consideration under Community Reinvestment Act (CRA) regulations to institutions located outside of Puerto Rico and the U.S. Virgin Islands, for ban…

The federal bank regulatory agencies today announced they are extending the period for giving favorable consideration under Community Reinvestment Act (CRA) regulations to institutions located outside of Puerto Rico and the U.S. Virgin Islands, for bank activities that continue to help revitalize or stabilize these areas devastated by Hurricane Maria (the "Hurricane").

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-62.html

Rep. Steil introduces bill to streamline reporting requirements for startups

U.S. Rep. Bryan Steil (R-WI) introduced a bill in the U.S. House of Representatives that would streamline reporting requirements for startups and emerging growth companies.© Shutterstock The Helping Startups Continue to Grow Act (H.R. 3448) seeks to provide a five-year extension of certain exemptions and reduced disclosure requirements. “We must give entrepreneurs the tools to […]

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U.S. Rep. Bryan Steil (R-WI) introduced a bill in the U.S. House of Representatives that would streamline reporting requirements for startups and emerging growth companies.

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The Helping Startups Continue to Grow Act (H.R. 3448) seeks to provide a five-year extension of certain exemptions and reduced disclosure requirements.

“We must give entrepreneurs the tools to recover and succeed following the pandemic. Reducing regulatory burdens is one step to help new companies create jobs and grow wages. My bill allows startups to focus on supporting workers, expanding their company, and developing the best products in the world rather than dealing with regulations and compliance costs. Thank you to Congressmen Hill and Hollingsworth for supporting the Helping Startups Continue to Grow Act,” Steil said.

Currently, emerging growth companies (EGCs) can maintain their status as an EGC for up to five years after they become a public company. However, many of them are not generating enough revenue five years after becoming public to support the compliance costs resulting from a loss of EGC status. With the five-year extension, startup companies won’t have to spend their time and money on bureaucratic regulations and compliance procedures meant for larger and more mature firms. Instead, these companies can focus on investing in their businesses.

The bill was cosponsored by U.S. Reps. French Hill (R-AR) and Trey Hollingsworth (R-IN).

“Entrepreneurs and small business owners are the lifeblood of Arkansas and America. Rep. Steil’s legislation allows these businesses to focus on growth and expansion in their early stages, which allows for more investment in our communities and our economy overall. I am proud to work with my colleague on this bill to help encourage entrepreneurial growth and success,” Hill said. “As the co-chair of the House Entrepreneurship Caucus and as a former entrepreneur myself, I have and will continue to promote and support legislation that bolsters startups as our economy recovers from the current health crisis.”

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Read more / Original news source: https://financialregnews.com/rep-steil-introduces-bill-to-streamline-reporting-requirements-for-startups/

Sen. Wicker presses Defense Department nominee on budget cuts

At a Senate Armed Services Committee, U.S. Sen. Roger Wicker (R-MA) urged a Defense Department official not to make certain cuts to the department’s budget. © Shutterstock Wicker pressed Susanna Blume, the Biden administration’s nominee to be director of cost assessment and program evaluation for the Department of Defense, on reports that cuts would be […]

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At a Senate Armed Services Committee, U.S. Sen. Roger Wicker (R-MA) urged a Defense Department official not to make certain cuts to the department’s budget.

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Wicker pressed Susanna Blume, the Biden administration’s nominee to be director of cost assessment and program evaluation for the Department of Defense, on reports that cuts would be made to the national defense budget, particularly for shipbuilding.

“I think it is the desire of members of this committee to say, ‘Tell us what the needs are, particularly with regard to meeting our national defense needs,’” Wicker said at the hearing. “Let’s find the resources together. But to cut back on what we are intending to do because of a lack of resources is unacceptable.”

Specifically, Wicker expressed his disappointment that Biden’s budget would include funding for only eight ships and would cut procurement of a destroyer. Also, reports indicated that the budget does not support an amphibious ship acquisition strategy even though the authorities necessary to acquire the amphibious ships were approved last year.

Blume, in her testimony, said she supported a strong U.S. Navy fleet.

“I believe that a robust and highly capable and sustainable Navy is critical to U.S. national security,” Blume said.

She also noted the benefits of multi-ship procurement, including cost-savings and stability for the U.S. shipbuilding industrial base.

“Tell us what the needs are, and we will enact the law to get you the resources,” Wicker said.

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Read more / Original news source: https://financialregnews.com/sen-wicker-presses-defense-department-nominee-on-budget-cuts/

Bipartisan group of lawmakers launch Financial Innovation Caucus

A bipartisan group of senators recently launched the Senate Financial Innovation Caucus, promoting financial inclusion, technology, and consumer protection.© Shutterstock U.S. Sens. Cynthia Lummis (R-WY), Kyrsten Sinema (D-AZ), John Hickenlooper (D-CO), Tim Scott (R-SC), Marsha Blackburn (R-TN), Mike Braun (R-IN), and Bill Cassidy (R-LA) spearheaded the initiative. It highlights responsible financial system innovation and how […]

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A bipartisan group of senators recently launched the Senate Financial Innovation Caucus, promoting financial inclusion, technology, and consumer protection.

© Shutterstock

U.S. Sens. Cynthia Lummis (R-WY), Kyrsten Sinema (D-AZ), John Hickenlooper (D-CO), Tim Scott (R-SC), Marsha Blackburn (R-TN), Mike Braun (R-IN), and Bill Cassidy (R-LA) spearheaded the initiative. It highlights responsible financial system innovation and how financial technologies can address market inclusivity, safety, and prosperity.

“The United States is the world leader in the global financial system, but that position is a privilege, not a right,” Lummis said. “It is also a huge, often-underappreciated benefit to every American. We need to work together to bring our financial system into the 21st century in order to maintain our leadership and ensure that future Americans can enjoy the same opportunity and prosperity that we experience today.”

The caucus is slated to spur discussion regarding domestic and global financial technology issues, in addition to launching legislation empowering innovators, protecting consumers, and guiding regulators.

“Two of my most important jobs are keeping America safe and secure and supporting Arizona job-creation,” Sinema said. “Boosting innovation in our financial system ensures the United States remains a global economic leader while expanding job opportunities in Arizona and across the country.”

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Read more / Original news source: https://financialregnews.com/bipartisan-group-of-lawmakers-launch-financial-innovation-caucus/

Sens. Crapo, Brady request status of Medicare Hospital Insurance trust fund

U.S. Sens. Mike Crapo (R-ID) and Kevin Brady (R-TX) recently forwarded correspondence to Treasury Secretary Janet Yellen requesting a revised Medicare Hospital Insurance (HI) trust fund insolvency projection.© Shutterstock The senators stated that assessing the nature of the HI trust fund’s current financial status is time-sensitive, anticipating Congress considers additional changes to the Medicare program […]

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U.S. Sens. Mike Crapo (R-ID) and Kevin Brady (R-TX) recently forwarded correspondence to Treasury Secretary Janet Yellen requesting a revised Medicare Hospital Insurance (HI) trust fund insolvency projection.

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The senators stated that assessing the nature of the HI trust fund’s current financial status is time-sensitive, anticipating Congress considers additional changes to the Medicare program this year.

“We simply cannot wait anywhere from two to four months for the next Medicare trustees report to be made public,” Crapo and Brady wrote. “Either through reconciliation or regular order, there is every expectation that Congress will consider additional healthcare-related legislation this year. Before Congress debates any further legislation that impacts the Medicare program, it is imperative that policymakers have accurate information explaining when the HI trust fund will be insolvent.”

The legislators acknowledged that, while committees have received a communication from Treasury officials recognizing this year’s reports will be delayed for some indefinite period, no indication policy has been developed or followed.

“Before Congress debates any further legislation that impacts the Medicare program, it is imperative that policymakers have accurate information explaining when the HI trust fund will be insolvent,” the lawmakers concluded. “If we receive an amended insolvency date projection as late as three months from now, well after Congress and the Administration have already enacted further legislative changes, then we may ultimately fail to take the immediate actions necessary to strengthen the Medicare program.”

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Read more / Original news source: https://financialregnews.com/sens-crapo-brady-request-status-of-medicare-hospital-insurance-trust-fund/