This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
26835
Vol. 85, No. 88
Wednesday, May 6, 2020
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 50
[Docket No. OCC–2020–0019]
RIN 1557–AE92
FEDERAL RESERVE SYSTEM
12 CFR Part 249
[Regulations WW; Docket No. R–1717]
RIN 7100–AF90
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 329
RIN 3064–AF51
Liquidity Coverage Ratio Rule:
Treatment of Certain Emergency
Facilities
AGENCY: Office of the Comptroller of the
Currency (OCC), Board of Governors of
the Federal Reserve System (Board), and
Federal Deposit Insurance Corporation
(FDIC).
ACTION: Interim final rule; request for
comment.
SUMMARY: To provide liquidity to the
money market sector, small business
lenders, and the broader credit markets
in order to stabilize the financial
system, the Board of Governors of the
Federal Reserve System (Board)
authorized the establishment of the
Money Market Mutual Fund Liquidity
Facility (MMLF) and the Paycheck
Protection Program Liquidity Facility
(PPPLF), pursuant to section 13(3) of the
Federal Reserve Act. To facilitate use of
these Federal Reserve facilities, and to
ensure that the effects of their use are
consistent and predictable under the
Liquidity Coverage Ratio (LCR) rule, the
Office of the Comptroller of the
Currency, the Board, and the Federal
Deposit Insurance Corporation (together,
the agencies) are adopting this interim
final rule to require banking
organizations to neutralize the effect
under the LCR rule of participating in
the MMLF and the PPPLF.
DATES: The interim final rule is effective
May 6, 2020. Comments on the interim
final rule must be received no later than
June 5, 2020.
ADDRESSES:
OCC: Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal or email, if possible.
Please use the title ‘‘Liquidity Coverage
Ratio Rule: Treatment of Emergency
FRB Secured Lending Facilities’’ to
facilitate the organization and
distribution of the comments. You may
submit comments by any of the
following methods:
• Federal eRulemaking Portal—
Regulations.gov Classic or
Regulations.gov Beta: Regulations.gov
Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0019’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments. For
help with submitting effective
comments please click on ‘‘View
Commenter’s Checklist.’’ Click on the
‘‘Help’’ tab on the Regulations.gov home
page to get information on using
Regulations.gov, including instructions
for submitting public comments.
Regulations.gov Beta: Go to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov Classic homepage.
Enter ‘‘Docket ID OCC–2020–0019’’ in
the Search Box and click ‘‘Search.’’
Public comments can be submitted via
the ‘‘Comment’’ box below the
displayed document information or by
clicking on the document title and then
clicking the ‘‘Comment’’ box on the top-
left side of the screen. For help with
submitting effective comments please
click on ‘‘Commenter’s Checklist.’’ For
assistance with the Regulations.gov Beta
site, please call (877) 378–5457 (toll
free) or (703) 454–9859 Monday–Friday,
9 a.m.–5 p.m. ET or email regulations@
erulemakinghelpdesk.com.
• Email: regs.comments@
occ.treas.gov.
• Mail: Chief Counsel’s Office,
Attention: Comment Processing, Office
of the Comptroller of the Currency, 400
7th Street SW, suite 3E–218,
Washington, DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, suite 3E–218, Washington,
DC 20219.
• Fax: (571) 465–4326.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2020–0019’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish the comments on the
Regulations.gov website without
change, including any business or
personal information provided such as
name and address information, email
addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by any of the
following methods:
• Viewing Comments Electronically—
Regulations.gov Classic or
Regulations.gov Beta: Regulations.gov
Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0019’’ in the Search box and
click ‘‘Search.’’ Click on ‘‘Open Docket
Folder’’ on the right side of the screen.
Comments and supporting materials can
be viewed and filtered by clicking on
‘‘View all documents and comments in
this docket’’ and then using the filtering
tools on the left side of the screen. Click
on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
Regulations.gov Beta: Go to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov Classic homepage.
Enter ‘‘Docket ID OCC–2020–0019’’ in
the Search Box and click ‘‘Search.’’
Click on the ‘‘Comments’’ tab.
Comments can be viewed and filtered
by clicking on the ‘‘Sort By’’ drop-down
on the right side of the screen or the
‘‘Refine Results’’ options on the left side
of the screen. Supporting materials can
be viewed by clicking on the
‘‘Documents’’ tab and filtered by
clicking on the ‘‘Sort By’’ drop-down on
the right side of the screen or the
VerDate Sep<11>2014 16:33 May 05, 2020 Jkt 250001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\06MYR1.SGM 06MYR1
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
26835
Vol. 85, No. 88
Wednesday, May 6, 2020
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 50
[Docket No. OCC–2020–0019]
RIN 1557–AE92
FEDERAL RESERVE SYSTEM
12 CFR Part 249
[Regulations WW; Docket No. R–1717]
RIN 7100–AF90
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 329
RIN 3064–AF51
Liquidity Coverage Ratio Rule:
Treatment of Certain Emergency
Facilities
AGENCY: Office of the Comptroller of the
Currency (OCC), Board of Governors of
the Federal Reserve System (Board), and
Federal Deposit Insurance Corporation
(FDIC).
ACTION: Interim final rule; request for
comment.
SUMMARY: To provide liquidity to the
money market sector, small business
lenders, and the broader credit markets
in order to stabilize the financial
system, the Board of Governors of the
Federal Reserve System (Board)
authorized the establishment of the
Money Market Mutual Fund Liquidity
Facility (MMLF) and the Paycheck
Protection Program Liquidity Facility
(PPPLF), pursuant to section 13(3) of the
Federal Reserve Act. To facilitate use of
these Federal Reserve facilities, and to
ensure that the effects of their use are
consistent and predictable under the
Liquidity Coverage Ratio (LCR) rule, the
Office of the Comptroller of the
Currency, the Board, and the Federal
Deposit Insurance Corporation (together,
the agencies) are adopting this interim
final rule to require banking
organizations to neutralize the effect
under the LCR rule of participating in
the MMLF and the PPPLF.
DATES: The interim final rule is effective
May 6, 2020. Comments on the interim
final rule must be received no later than
June 5, 2020.
ADDRESSES:
OCC: Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal or email, if possible.
Please use the title ‘‘Liquidity Coverage
Ratio Rule: Treatment of Emergency
FRB Secured Lending Facilities’’ to
facilitate the organization and
distribution of the comments. You may
submit comments by any of the
following methods:
• Federal eRulemaking Portal—
Regulations.gov Classic or
Regulations.gov Beta: Regulations.gov
Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0019’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments. For
help with submitting effective
comments please click on ‘‘View
Commenter’s Checklist.’’ Click on the
‘‘Help’’ tab on the Regulations.gov home
page to get information on using
Regulations.gov, including instructions
for submitting public comments.
Regulations.gov Beta: Go to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov Classic homepage.
Enter ‘‘Docket ID OCC–2020–0019’’ in
the Search Box and click ‘‘Search.’’
Public comments can be submitted via
the ‘‘Comment’’ box below the
displayed document information or by
clicking on the document title and then
clicking the ‘‘Comment’’ box on the top-
left side of the screen. For help with
submitting effective comments please
click on ‘‘Commenter’s Checklist.’’ For
assistance with the Regulations.gov Beta
site, please call (877) 378–5457 (toll
free) or (703) 454–9859 Monday–Friday,
9 a.m.–5 p.m. ET or email regulations@
erulemakinghelpdesk.com.
• Email: regs.comments@
occ.treas.gov.
• Mail: Chief Counsel’s Office,
Attention: Comment Processing, Office
of the Comptroller of the Currency, 400
7th Street SW, suite 3E–218,
Washington, DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, suite 3E–218, Washington,
DC 20219.
• Fax: (571) 465–4326.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2020–0019’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish the comments on the
Regulations.gov website without
change, including any business or
personal information provided such as
name and address information, email
addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by any of the
following methods:
• Viewing Comments Electronically—
Regulations.gov Classic or
Regulations.gov Beta: Regulations.gov
Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0019’’ in the Search box and
click ‘‘Search.’’ Click on ‘‘Open Docket
Folder’’ on the right side of the screen.
Comments and supporting materials can
be viewed and filtered by clicking on
‘‘View all documents and comments in
this docket’’ and then using the filtering
tools on the left side of the screen. Click
on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
Regulations.gov Beta: Go to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov Classic homepage.
Enter ‘‘Docket ID OCC–2020–0019’’ in
the Search Box and click ‘‘Search.’’
Click on the ‘‘Comments’’ tab.
Comments can be viewed and filtered
by clicking on the ‘‘Sort By’’ drop-down
on the right side of the screen or the
‘‘Refine Results’’ options on the left side
of the screen. Supporting materials can
be viewed by clicking on the
‘‘Documents’’ tab and filtered by
clicking on the ‘‘Sort By’’ drop-down on
the right side of the screen or the
VerDate Sep<11>2014 16:33 May 05, 2020 Jkt 250001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\06MYR1.SGM 06MYR1
26836 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations
1 12 U.S.C. 343(3).
2 The applicability of the LCR rule is described in
§ __.1 of the rule. See 12 CFR 50.1 (OCC); 12 CFR
249.1 (Board); and 12 CFR 329.1 (FDIC).
‘‘Refine Results’’ options on the left side
of the screen.’’ For assistance with the
Regulations.gov Beta site, please call
(877) 378–5457 (toll free) or (703) 454–
9859 Monday–Friday, 9 a.m.–5 p.m. ET
or email regulations@
erulemakinghelpdesk.com.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
Board: You may submit comments,
identified by Docket No. R–1717; RIN
7100–AF90, by any of the following
methods:
• Agency website: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Email: regs.comments@
federalreserve.gov. Include docket and
RIN numbers in the subject line of the
message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Ann E. Misback, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551.
All public comments will be made
available on the Board’s website at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons or to remove personally
identifiable information at the
commenter’s request. Accordingly,
comments will not be edited to remove
any identifying or contact information.
For security reasons, the Board requires
that visitors make an appointment to
inspect comments. You may do so by
calling (202) 452–3684.
FDIC: You may submit comments,
identified by RIN 3064–AF51, by any of
the following methods:
• Agency website: https://
www.fdic.gov/regulations/laws/federal.
Follow instructions for submitting
comments on the Agency website.
• Email: Comments@FDIC.gov.
Include ‘‘RIN 3064–AF51’’ on the
subject line of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/RIN
3064–AF51, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivered/Courier: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
NW, building (located on F Street) on
business days between 7:00 a.m. and
5:00 p.m.
FOR FURTHER INFORMATION CONTACT:
OCC: James Weinberger, Technical
Expert, Treasury & Market Risk Policy,
(202) 649–6360; or Henry Barkhausen,
Counsel, or Daniel Perez, Senior
Attorney, Chief Counsel’s Office, (202)
649–5490, for persons who are deaf or
hearing impaired, TTY, (202) 649–5597,
Office of the Comptroller of the
Currency, 400 7th Street SW,
Washington, DC 20219.
Board: Anna Lee Hewko, Associate
Director, (202) 530–6360, Constance
Horsley, Deputy Associate Director,
(202) 452–5239, Kathryn Ballintine,
Manager, (202) 452–2555, Kevin Littler,
Lead Financial Institution Policy
Analyst, (202) 475–6677, Cecily Boggs,
Senior Financial Institution Policy
Analyst II, (202) 530–6209, Michael
Ofori-Kuragu, Senior Financial
Institution Policy Analyst II, (202) 475–
6623, or Christopher Powell, Senior
Financial Institution Policy Analyst II,
(202) 452–3442, Division of Supervision
and Regulation; Benjamin McDonough,
Assistant General Counsel, (202) 452–
2036, Steve Bowne, Senior Counsel,
(202) 452–3900, Jason Shafer, Senior
Counsel, (202) 728–5811, Laura Bain,
Counsel, (202) 736–5546, or Jeffery
Zhang, Attorney, (202) 736–1968, Legal
Division, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551. Users of Telecommunication
Device for Deaf (TDD) only, call (202)
263–4869.
FDIC: Bobby R. Bean, Associate
Director, bbean@fdic.gov; Irina Leonova,
Acting Chief, Capital Markets Strategies
Section, ileonova@FDIC.gov; Eric
Schatten, Senior Policy Analyst,
eschatten@fdic.gov; Andrew
Carayiannis, Senior Policy Analyst,
acarayiannis@fdic.gov; capitalmarkets@
fdic.gov; Capital Markets Branch,
Division of Risk Management
Supervision, (202) 898–6888; or
Suzanne Dawley, Counsel, sudawley@
fdic.gov; Gregory Feder, Counsel,
gfeder@fdic.gov; Andrew B. Williams II,
Counsel, andwilliams@fdic.gov;
Supervision and Legislation Branch,
Legal Division, Federal Deposit
Insurance Corporation, 550 17th Street
NW, Washington, DC 20429. For the
hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (800) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. The Interim Final Rule
III. Administrative Law Matters
A. Administrative Procedure Act
B. Congressional Review Act
C. Paperwork Reduction Act
D. Regulatory Flexibility Act
E. Riegle Community Development and
Regulatory Improvement Act of 1994
F. Use of Plain Language
G. OCC Unfunded Mandates Reform Act of
1995 Determination
I. Background
The containment measures adopted in
response to the public health concerns
have slowed economic activity in many
countries, including the United States.
Financial conditions have tightened
markedly, sudden disruptions in
financial markets have put increasing
liquidity pressure on money market
mutual funds, and the cost of credit has
risen for most borrowers. Given these
liquidity pressures, money market
mutual funds have been faced with
redemption requests from clients with
immediate cash needs and may need to
sell a significant number of assets to
meet such requests, which could further
increase market pressures. Small
businesses also are facing severe
liquidity constraints, as millions of
Americans have been ordered to stay
home, severely reducing their ability to
engage in normal commerce, and
revenue streams for many small
businesses have collapsed. This has
forced many small businesses to close
temporarily or furlough employees.
Continued access to financing will be
crucial for small businesses to weather
economic disruptions caused by the
containment measures adopted in
response to the public health concerns
and, ultimately, to help restore
economic activity.
In order to prevent the disruption in
the money markets from destabilizing
the financial system, the Board of
Governors of the Federal Reserve
System (Board), with the approval of the
Secretary of the Treasury, authorized
the Federal Reserve Bank of Boston to
establish the Money Market Mutual
Fund Liquidity Facility (MMLF),
pursuant to section 13(3) of the Federal
Reserve Act.1 Under the MMLF, the
Federal Reserve Bank of Boston extends
non-recourse loans to eligible borrowers
to purchase assets from money market
mutual funds (MMFs). Assets purchased
from MMFs are posted as collateral to
the Federal Reserve Bank of Boston
(MMLF collateral). Eligible borrowers
under the MMLF include certain
banking organizations subject to the
Liquidity Coverage Ratio (LCR) rule
(covered companies) issued by the
Office of the Comptroller of the
Currency (OCC), the Board, and the
Federal Deposit Insurance Corporation
(FDIC) (together, the agencies).2 MMLF
collateral generally comprises securities
VerDate Sep<11>2014 16:33 May 05, 2020 Jkt 250001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\06MYR1.SGM 06MYR1
1 12 U.S.C. 343(3).
2 The applicability of the LCR rule is described in
§ __.1 of the rule. See 12 CFR 50.1 (OCC); 12 CFR
249.1 (Board); and 12 CFR 329.1 (FDIC).
‘‘Refine Results’’ options on the left side
of the screen.’’ For assistance with the
Regulations.gov Beta site, please call
(877) 378–5457 (toll free) or (703) 454–
9859 Monday–Friday, 9 a.m.–5 p.m. ET
or email regulations@
erulemakinghelpdesk.com.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
Board: You may submit comments,
identified by Docket No. R–1717; RIN
7100–AF90, by any of the following
methods:
• Agency website: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Email: regs.comments@
federalreserve.gov. Include docket and
RIN numbers in the subject line of the
message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Ann E. Misback, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551.
All public comments will be made
available on the Board’s website at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons or to remove personally
identifiable information at the
commenter’s request. Accordingly,
comments will not be edited to remove
any identifying or contact information.
For security reasons, the Board requires
that visitors make an appointment to
inspect comments. You may do so by
calling (202) 452–3684.
FDIC: You may submit comments,
identified by RIN 3064–AF51, by any of
the following methods:
• Agency website: https://
www.fdic.gov/regulations/laws/federal.
Follow instructions for submitting
comments on the Agency website.
• Email: Comments@FDIC.gov.
Include ‘‘RIN 3064–AF51’’ on the
subject line of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/RIN
3064–AF51, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivered/Courier: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
NW, building (located on F Street) on
business days between 7:00 a.m. and
5:00 p.m.
FOR FURTHER INFORMATION CONTACT:
OCC: James Weinberger, Technical
Expert, Treasury & Market Risk Policy,
(202) 649–6360; or Henry Barkhausen,
Counsel, or Daniel Perez, Senior
Attorney, Chief Counsel’s Office, (202)
649–5490, for persons who are deaf or
hearing impaired, TTY, (202) 649–5597,
Office of the Comptroller of the
Currency, 400 7th Street SW,
Washington, DC 20219.
Board: Anna Lee Hewko, Associate
Director, (202) 530–6360, Constance
Horsley, Deputy Associate Director,
(202) 452–5239, Kathryn Ballintine,
Manager, (202) 452–2555, Kevin Littler,
Lead Financial Institution Policy
Analyst, (202) 475–6677, Cecily Boggs,
Senior Financial Institution Policy
Analyst II, (202) 530–6209, Michael
Ofori-Kuragu, Senior Financial
Institution Policy Analyst II, (202) 475–
6623, or Christopher Powell, Senior
Financial Institution Policy Analyst II,
(202) 452–3442, Division of Supervision
and Regulation; Benjamin McDonough,
Assistant General Counsel, (202) 452–
2036, Steve Bowne, Senior Counsel,
(202) 452–3900, Jason Shafer, Senior
Counsel, (202) 728–5811, Laura Bain,
Counsel, (202) 736–5546, or Jeffery
Zhang, Attorney, (202) 736–1968, Legal
Division, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551. Users of Telecommunication
Device for Deaf (TDD) only, call (202)
263–4869.
FDIC: Bobby R. Bean, Associate
Director, bbean@fdic.gov; Irina Leonova,
Acting Chief, Capital Markets Strategies
Section, ileonova@FDIC.gov; Eric
Schatten, Senior Policy Analyst,
eschatten@fdic.gov; Andrew
Carayiannis, Senior Policy Analyst,
acarayiannis@fdic.gov; capitalmarkets@
fdic.gov; Capital Markets Branch,
Division of Risk Management
Supervision, (202) 898–6888; or
Suzanne Dawley, Counsel, sudawley@
fdic.gov; Gregory Feder, Counsel,
gfeder@fdic.gov; Andrew B. Williams II,
Counsel, andwilliams@fdic.gov;
Supervision and Legislation Branch,
Legal Division, Federal Deposit
Insurance Corporation, 550 17th Street
NW, Washington, DC 20429. For the
hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (800) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. The Interim Final Rule
III. Administrative Law Matters
A. Administrative Procedure Act
B. Congressional Review Act
C. Paperwork Reduction Act
D. Regulatory Flexibility Act
E. Riegle Community Development and
Regulatory Improvement Act of 1994
F. Use of Plain Language
G. OCC Unfunded Mandates Reform Act of
1995 Determination
I. Background
The containment measures adopted in
response to the public health concerns
have slowed economic activity in many
countries, including the United States.
Financial conditions have tightened
markedly, sudden disruptions in
financial markets have put increasing
liquidity pressure on money market
mutual funds, and the cost of credit has
risen for most borrowers. Given these
liquidity pressures, money market
mutual funds have been faced with
redemption requests from clients with
immediate cash needs and may need to
sell a significant number of assets to
meet such requests, which could further
increase market pressures. Small
businesses also are facing severe
liquidity constraints, as millions of
Americans have been ordered to stay
home, severely reducing their ability to
engage in normal commerce, and
revenue streams for many small
businesses have collapsed. This has
forced many small businesses to close
temporarily or furlough employees.
Continued access to financing will be
crucial for small businesses to weather
economic disruptions caused by the
containment measures adopted in
response to the public health concerns
and, ultimately, to help restore
economic activity.
In order to prevent the disruption in
the money markets from destabilizing
the financial system, the Board of
Governors of the Federal Reserve
System (Board), with the approval of the
Secretary of the Treasury, authorized
the Federal Reserve Bank of Boston to
establish the Money Market Mutual
Fund Liquidity Facility (MMLF),
pursuant to section 13(3) of the Federal
Reserve Act.1 Under the MMLF, the
Federal Reserve Bank of Boston extends
non-recourse loans to eligible borrowers
to purchase assets from money market
mutual funds (MMFs). Assets purchased
from MMFs are posted as collateral to
the Federal Reserve Bank of Boston
(MMLF collateral). Eligible borrowers
under the MMLF include certain
banking organizations subject to the
Liquidity Coverage Ratio (LCR) rule
(covered companies) issued by the
Office of the Comptroller of the
Currency (OCC), the Board, and the
Federal Deposit Insurance Corporation
(FDIC) (together, the agencies).2 MMLF
collateral generally comprises securities
VerDate Sep<11>2014 16:33 May 05, 2020 Jkt 250001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\06MYR1.SGM 06MYR1