Earlier this week, Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell testified before the Senate Banking (Dec. 2) and House Financial Services Committee (Dec. 3) oversight hearings on the Treasury and Federal Reserve’s response to the COVID-19 pandemic. Democrats expressed their displeasure with Secretary Mnuchin’s statements that the CARES Act doesn’t allow him to extend five 13(3) federal facilities into 2021, and he would begin the process of withdrawing funds supporting nine of the Fed’s 13(3) facilities, including funds for the Main Street Lending Program. Chairman Powell’s testimony contradicted that view noting the CARES Act assigns sole authority over funds to the Treasury Secretary. Throughout the hearing, Secretary Mnuchin reiterated his urgent plea for Congress to pass relief legislation that would specifically target small businesses through tailored Paycheck Protection Program (PPP) funding to revenue-declining small businesses with the previously allocated $140B in unspent PPP funds.

 

Republicans and Democrats also used the hearing as an opportunity to engage with both officials on some of SFA’s policy priorities including LIBOR transition and the FHFA’s reproposed capital rule and its impact on Credit Risk Transfers.

Click here to watch the Senate Banking Committee Hearing.

Click here to watch the House Financial Services Committee Hearing.