Financial Regulators Share Responses to Pandemic

At a Financial Stability Oversight Council meeting, financial regulators shared information on various measures implemented in response to COVID-19.

• SEC Chair Jay Clayton emphasized the SEC's focus on maintaining the functions of the U.S. securities market. He pointed out the importance of global cooperation among regulators to ensure the continued provision of credit and trading.
• CFTC Chair Heath P. Tarbert identified several steps taken by CFTC staff, including (i) actively monitoring the derivatives market, (ii) granting targeted regulatory relief, and (iii) being in constant communication with stakeholders (e.g., Congress and financial regulators on both a domestic and global basis).
• FDIC Chair Jelena McWilliams asserted that all FDIC-insured deposits are safe. She affirmed that banks are equipped to continue delivering capital and liquidity to communities in the United States. In addition, she reported that the effects of the pandemic will likely "fall hardest" on consumers, small businesses and low-income borrowers. As a result, she stated, the FDIC has taken regulatory action to allow banks to provide capital to all areas of the economy. She also warned of fraudsters impersonating FDIC representatives, and made clear that an actual FDIC representative would never ask for money or personal information or recommend that money be transferred out of an account.
• OCC Comptroller Joseph M. Otting highlighted the continued work done by the OCC to safeguard financial activities important to the United States, such as small-dollar lending and appraisals for commercial loans. He also made it clear that banks may adjust their hours or offer alternative service options to customers to meet their needs relating to COVID-19.
• Maryland Commissioner Melanie Senter Lubin, representing the North American Securities Administrators Association ("NASAA"), stated that over 30 state securities regulators thus far have issued relief during the COVID-19 outbreak. She noted that NASAA provided: (i) a model emergency order to help states draft orders for temporary regulatory relief; and (ii) investor advisories regarding pandemic-related fraudulent schemes.