BRP ANNOUNCES PRELIMINARY RESULTS OF SUBSTANTIAL ISSUER BID

Valcourt, Québec, July 26, 2021 – BRP Inc. (TSX:DOO; NASDAQ:DOOO) today announced the preliminary results of its substantial issuer bid (“SIB”), pursuant to which BRP offered to purchase for cancellation a number of its subordinate voting shares (“Shares”) for an aggregate purchase price not to exceed $350 million at a purchase price of not less than $94.00 and not more than $113.00 per Share. The SIB expired at 11:59 p.m. (Montreal time) Friday July 23, 2021. All dollar amounts are in Canadian dollars.

In accordance with the terms and conditions of the SIB and based on the preliminary calculation of Computershare Investor Services Inc. (“Computershare”), as depositary for the SIB, BRP expects to take up and pay for 3,381,642 Shares at a price of $103.50 per Share under the SIB, representing an aggregate purchase price of approximately $350 million and 4% of the total number of BRP’s issued and outstanding Shares and multiple voting shares before giving effect to the SIB.

The full details of the SIB are described in the offer to purchase and issuer bid circular dated June 18, 2021, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which were filed and are available on SEDAR at www.sedar.comand on EDGAR at www.sec.com.

2,938,973 Shares were validly tendered and not withdrawn pursuant to auction tenders at or below the purchase price and purchase price tenders. Since the SIB was oversubscribed, shareholders who made auction tenders at or below the purchase price and purchase price tenders will have the number of Shares purchased prorated following the determination of the final results of the SIB (other than “odd lot” tenders, which are not subject to proration). BRP currently expects that shareholders who made auction tenders at or below the purchase price and purchase price tenders will have approximately 83% of their successfully tendered Shares purchased by BRP. BRP expects to take up and purchase 936,692 Shares pursuant to proportionate tenders.

Holders of multiple voting shares were entitled to participate in the SIB. Multiple voting shares taken up by BRP will be converted into Shares on a one-for-one basis immediately prior to take up. Beaudier Inc. and 4338618 Canada Inc., which collectively hold approximately 27.7% of BRP’s issued and outstanding Shares and multiple voting shares, made proportionate tenders in connection with the SIB and will maintain their proportionate equity ownership in BRP following completion of the SIB.

After giving effect to the SIB, BRP expects to have 37,716,787 Shares and 42,954,979 multiple voting shares issued and outstanding. 

The number of Shares to be purchased, the proration factor and the purchase price referred to above are preliminary, remains subject to verification by Computershare and assume that all

Shares tendered through notice of guaranteed delivery will be delivered within the two trading

day settlement period. Upon take up and payment of the Shares purchased, BRP will release the final results, including the final proration factor.

This press release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell BRP’s shares. 

About BRP
We are a global leader in the world of powersports vehicles, propulsion systems and boats built on over 75 years of ingenuity and intensive consumer focus. Our portfolio of industry-leading and distinctive products includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am on- and off-road vehicles, Alumacraft, Manitou, Quintrex boats and Rotax marine propulsion systems as well as Rotax engines for karts and recreational aircraft. We complete our lines of products with a dedicated parts, accessories and apparel business to fully enhance the riding experience. With annual sales of CA$6.0 billion from over 130 countries, our global workforce is made up of more than 14,500 driven, resourceful people. 
www.brp.com
@BRPNews

Ski-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Alumacraft, Manitou, Quintrex, Stacer, Savage, Evinrude and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Certain information included in this release, including, but not limited to, statements relating to the SIB, the actual number of Shares to be taken up and paid for in connection with the SIB, the purchase price, the proration factor and the number of Shares and multiple voting shares expected to be issued and outstanding after completion of the SIB, and other statements that are not historical facts, are “forward-looking statements” within the meaning of Canadian and United States securities laws. Forward-looking statements are typically identified by the use of terminology such as “may”, “will”, “would”, “should”, “could”, “expects”, “forecasts”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “outlook”, “predicts”, “projects”, “likely” or “potential” or the negative or other variations of these words or other comparable words or phrases. Forward looking statements, by their very nature, involve inherent risks and uncertainties and are based on several assumptions, both general and specific. BRP cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of BRP or the powersports or marine industry to be materially different from the outlook or any future results or performance implied by such statements. Further details and descriptions of these and other factors are disclosed in the offer to purchase and in BRP’s annual information form dated March 24, 2021.

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For media enquiries: 

For investor relations:

Media Relations

Philippe Deschênes

[email protected]

Investor Relations

 

Tel.: 450.532.6462

 

[email protected]

Secretary of the Treasury Janet L. Yellen Sends Letter to Congressional Leadership on the Debt Limit

WASHINGTON — Today, U.S. Secretary of the Treasury Janet L. Yellen sent a letter to Congressional leadership regarding the debt limit.

The full text of the letter is available here and below.

The Honorable Nancy Pelosi

Speaker

U.S. House of Representatives

Washington, DC  20515

 

Dear Madam Speaker:

 

As you know, the Bipartisan Budget Act of 2019 suspended the statutory debt limit through Saturday, July 31, 2021.  I am writing to inform you that beginning on Sunday, August 1, 2021, the outstanding debt of the United States will be at the statutory limit. 

Today, Treasury is announcing that it will suspend the sale of State and Local Government Series (SLGS) securities at 12:00 p.m. on July 30, 2021.  The suspension of SLGS sales will continue until the debt limit is suspended or raised.  If Congress has not acted to suspend or increase the debt limit by Monday, August 2, 2021, Treasury will need to start taking certain additional extraordinary measures in order to prevent the United States from defaulting on its obligations.  

Increasing or suspending the debt limit does not increase government spending, nor does it authorize spending for future budget proposals; it simply allows Treasury to pay for previously enacted expenditures.  The current level of debt reflects the cumulative effect of all prior spending and tax decisions, which have been made by Administrations and Congresses of both parties over time.  Failure to meet those obligations would cause irreparable harm to the U.S. economy and the livelihoods of all Americans.  Even the threat of failing to meet those obligations has caused detrimental impacts in the past, including the sole credit rating downgrade in the history of the nation in 2011.  This is why no President or Treasury Secretary of either party has ever countenanced even the suggestion of a default on any obligation of the United States.

The period of time that extraordinary measures may last is subject to considerable uncertainty due to a variety of factors, including the challenges of forecasting the payments and receipts of the U.S. government months into the future, exacerbated by the heightened uncertainty in payments and receipts related to the economic impact of the pandemic.  Given this, Treasury is not able to currently provide a specific estimate of how long extraordinary measures will last.  However, there are scenarios in which cash and extraordinary measures could be exhausted soon after Congress returns from recess.  For example, on October 1 alone, cash and extraordinary measures are expected to decrease by about $150 billion due to large mandatory payments, including a Department of Defense-related retirement and health care investment.

In recent years Congress has addressed the debt limit through regular order, with broad bipartisan support.  I respectfully urge Congress to protect the full faith and credit of the United States by acting as soon as possible.

 

Sincerely,

Janet Yellen

Secretary of the Treasury

 

Identical letter sent to:

            The Honorable Kevin McCarthy, House Minority Leader

The Honorable Charles E. Schumer, Senate Majority Leader

The Honorable Mitch McConnell, Senate Minority Leader

cc:      

The Honorable Richard Neal, Chairman, House Committee on Ways and Means

The Honorable Kevin Brady, Ranking Member, House Committee on Ways and Means

The Honorable Ron Wyden, Chairman, Senate Committee on Finance

The Honorable Mike Crapo, Ranking Member, Senate Committee on Finance

 

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Treasury Sanctions Cuban Minister of Defense and Special Forces Brigade for Abuses Against Protestors

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned one Cuban individual and one Cuban entity pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world. Today’s action targets the Cuban Minister of Defense, ALVARO LOPEZ MIERA (LOPEZ MIERA), and the BRIGADA ESPECIAL NACIONAL DEL MINISTERIO DEL INTERIOR (SNB) of the Cuban Ministry of the Interior (MININT) in connection with the repression of peaceful, pro-democratic protests in Cuba that began on July 11.
“The Cuban people are protesting for the fundamental and universal rights they deserve from their government,” said Secretary Janet L. Yellen. “Treasury will continue to enforce its Cuba-related sanctions, including those imposed today, to support the people of Cuba in their quest for democracy and relief from the Cuban regime.”

SANCTIONS ON CUBA

In addition to the sanctions imposed today under the Global Magnitsky program, OFAC continues to enforce the Cuba sanctions program, which is the most comprehensive sanctions program administered by OFAC. With exceptions to ensure that certain categories of economic activity are allowed that directly benefit the Cuban people, OFAC administers an economic embargo on Cuba that prohibits U.S. persons (and entities owned or controlled by U.S. persons) from engaging in transactions and providing services that may sustain the Cuban regime. In addition, all Cuban nationals are blocked — regardless of whether they appear on Treasury’s Specially Designated Nationals and Blocked Persons List (SDN List). The Treasury Department will continue to enforce these prohibitions consistent with applicable statutes and regulations.

ABUSE AGAINST PROTESTORS IN CUBA

Cuba’s Ministry of the Revolutionary Armed Forces (MINFAR), which is led by, LOPEZ MIERA, has played an integral role in the repression of ongoing protests in Cuba, in which Cuban citizens are calling for an end to the 62-year old regime and deteriorating living conditions across the island, as well as demanding access to basic goods and services and medical attention. MINFAR and the Cuban government’s security services have attacked protesters and arrested or disappeared over 100 protesters in an attempt to suppress these protests.
LOPEZ MIERA is being designated pursuant to E.O. 13818 for being a foreign person who is the leader or official of MINFAR, an entity that has engaged in, or whose members have engaged in, serious human rights abuse, relating to his tenure. MINFAR is blocked pursuant to OFAC’s Cuban Assets Control Regulations, 31 C.F.R. part 515 (CACR).

The SNB, also known as the Boinas Negras or Black Berets, is a special forces unit under the Cuban Ministry of the Interior (MININT), which was previously designated by OFAC under E.O. 13818 on January 15, 2021. During the July 2021 protests, the Cuban government deployed the SNB to suppress and attack protesters.

SNB is being designated pursuant to E.O. 13818 for being owned or controlled by, or for acting or purporting to act for or on behalf of, directly or indirectly, MININT, which, as noted above, was previously designated by OFAC pursuant to the Global Magnitsky program for being a foreign person who is responsible for or complicit in, or having directly or indirectly engaged in, serious human rights abuse.

SANCTIONS IMPLICATIONS

All property and interests in property of these persons that are blocked pursuant to the Cuban Assets Control Regulations, 31 C.F.R. part 515 (CACR), continue to be blocked. The CACR prohibits persons subject to U.S. jurisdiction from dealing in property in which Cuba or a Cuban national has an interest, unless authorized or exempt. Additionally, pursuant to the Global Magnitsky Sanctions Regulations, 31 C.F.R. part 583, all property and interests in property of the persons above that are in the United States or in the possession or control of U.S. persons are blocked, and all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or otherwise exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person or the receipt of any contribution or provision of funds, goods, or services from any such person.

View more information on the persons designated today.

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Readout: Secretary of the Treasury Janet L. Yellen’s Meeting with the Heads and Private-Sector Leads of the Multilateral Development Banks to Discuss Climate Finance

WASHINGTON – Today, Secretary of the Treasury Janet L. Yellen convened the heads and private-sector leads of several of the multilateral development banks (MDBs) to discuss ways that the MDBs can rapidly align their portfolios with the goals of the Paris Agreement and redouble their efforts to mobilize significantly more private capital for climate. Participants included U.S. Special Presidential Envoy for Climate John Kerry and representatives from the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank Group, and the World Bank Group.

Meeting participants explored ways for the MDBs to mobilize significantly more private-sector finance. Secretary Yellen urged the MDBs to evaluate internal incentives, structures, and practices to ensure that the organizations are orienting their efforts to maximize private capital mobilization toward climate change. Participants discussed how the MDBs can evolve their role further beyond the critical development finance they provide, including to help countries develop green bond markets to raise capital and to craft robust enabling environments to incentivize the private investment needed to meet the climate challenge. Secretary Yellen encouraged the MDBs to increase their focus on climate adaptation, particularly through private-sector operations, and to support developing countries in implementing ambitious emissions reduction measures and protecting critical ecosystems.

Secretary Yellen pledged to work with the MDBs to help them achieve these objectives and will reconvene the group to discuss their concrete plans in October on the sidelines of the 2021 Annual Meetings of the Boards of Governors of the IMF and the World Bank Group.

Joint Statement by Secretary Janet L. Yellen and Secretary Antony J. Blinken Commending the United Kingdom’s Anti-Corruption Sanctions

The United States welcomes the United Kingdom’s announcement today to impose further sanctions under its Global Anti-Corruption Sanctions (GACS) regime, which is designed to fight corruption and illicit finance. We commend the UK’s actions today against four corrupt individuals already designated by the United States and a fifth whose U.S.-based assets purchased with corrupt proceeds were successfully forfeited in U.S. courts.

Corruption has a corrosive effect on society: it undermines democratic institutions, hinders economic development, drains the wealth of nations, and keeps people in poverty. The United States is committed to working with, and supporting, our partners and allies in the fight against corruption. Today’s action by the United Kingdom is an important step in this effort.

Sanctions regimes such as the UK’s GACS and the U.S. Global Magnitsky sanctions program promote accountability for corrupt actors and help limit their access to the international financial system. Effective implementation of our programs can break the cycle of poor governance and poverty sustained by corruption, while supporting global efforts to address systematic vulnerabilities.

The United States will continue working with the United Kingdom and other likeminded allies and partners to impose tangible and significant consequences on those who engage in corruption, as well as to protect the global financial system.

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More than 2.2 million additional Economic Impact Payments disbursed under the American Rescue Plan

WASHINGTON — The U.S. Department of the Treasury, the Internal Revenue Service, and the Bureau of the Fiscal Service announced today they have disbursed more than 2.2 million additional Economic Impact Payments under the American Rescue Plan.

Today’s announcement covering the most recent six weeks of the effort brings the total disbursed so far under the American Rescue Plan to more than 171 million payments. They represent a total value of more than $400 billion since these payments began rolling out to Americans in batches on March 12.

Here is additional information on the last six weeks of payments, which includes those with official payment dates through July 21:

  • In total, this includes about 2.2 million payments with a value of more than $4 billion.
  • About 1.3 million payments, with a value of approximately $2.6 billion, went to eligible individuals for whom the IRS previously did not have information to issue an Economic Impact Payment but who recently filed a tax return. 
  • This also includes additional ongoing supplemental payments for people who earlier this year received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns. In the last six weeks, there were more than 900,000 of these “plus-up” payments, with a value of more than $1.6 billion. In all, the IRS has made more than 9 million of these supplemental payments this year worth approximately $18.5 billion.

The IRS will continue to disburse Economic Impact Payments on a weekly basis. Ongoing payments will be sent to eligible individuals for whom the IRS previously did not have information to issue a payment but who recently filed a tax return, as well to people who qualify for “plus-up” payments.

Special reminder for those who don’t normally file a tax return

Although payments are automatic for most people, the IRS continues to urge people who don’t normally file a tax return and haven’t received Economic Impact Payments to file a 2020 tax return to get all the benefits they’re entitled to under the law, including tax credits such as the 2020 Recovery Rebate Credit, the Child Tax Credit, and the Earned Income Tax Credit. Filing a 2020 tax return will also assist the IRS in determining whether someone is eligible for monthly advance payments of the 2021 Child Tax Credit, which began earlier this month.

For example, some federal benefits recipients may need to file a 2020 tax return – even if they don’t usually file – to provide information the IRS needs to send payments for a qualifying dependent. Eligible individuals in this group should file a 2020 tax return as quickly as possible to be considered for an additional payment for their qualifying dependents.

People who don’t normally have an obligation to file a tax return and don’t receive federal benefits may qualify for these Economic Impact Payments. This includes those experiencing homelessness, the rural poor, and other historically under-served groups. Individuals who didn’t get a first or second round Economic Impact Payment or got less than the full amounts may be eligible for the 2020 Recovery Rebate Credit, but they’ll need to file a 2020 tax return. See the special section on IRS.gov: Claiming the 2020 Recovery Rebate Credit if you aren’t required to file a tax return.

The IRS has provided an online Non-Filer tool to allow individuals who weren’t required to file (and have not filed) a tax return for 2020 to file a simplified tax return. This simplified tax return allows eligible individuals to register for advance Child Tax Credit payments and the third Economic Impact Payment, as well as claim the 2020 Recovery Rebate Credit. Free tax return preparation is also available for qualifying people.

The IRS reminds taxpayers that the income levels in this third round of Economic Impact Payments have changed. This means that some people won’t be eligible for the third payment even if they received a first or second Economic Impact Payment or claimed a 2020 Recovery Rebate Credit. Payments will begin to be reduced for individuals making $75,000 or above in Adjusted Gross Income ($150,000 for married filing jointly). The payments end at $80,000 for individuals ($160,000 for married filing jointly); people with Adjusted Gross Incomes above these levels are ineligible for a payment.

Individuals can check the Get My Payment tool on IRS.gov to see the payment status of these payments. Additional information on Economic Impact Payments is available on IRS.gov.

 

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Secretary of the Treasury Janet L. Yellen’s Discussion with National Latino Leaders

WASHINGTON – Earlier today, Secretary of the Treasury Janet L. Yellen hosted a group of national Latino leaders from civil rights, advocacy, and small business organizations alongside UnidosUS President Janet Murguía for a virtual roundtable discussion on the state of the economy, economic barriers impacting the Latino community, and what Treasury is doing to advance equity through its programs, policies, and recruitment process. The group discussed measures to narrow the racial wealth gap and promote ownership through critical access to capital programs like the Community Development and Financial Institutions Fund. Secretary Yellen also emphasized the Administration’s commitment to an equitable recovery and underscored efforts to make sure much needed relief programs, such as emergency rental assistance and the newly advanced, monthly Child Tax Credit (CTC) benefit reaches Latino communities and families.
A list of meeting attendees is below.

  • David Adame, President, Chicanos Por La Causa (CPLC)
  • Marla Bilonick, President & CEO, National Association for Latino Community Asset Builders (NALCAB)
  • Sindy Benavides, CEO, League of United Latin American Citizens (LULAC)
  • Maria Teresa Kumar, CEO, Voto Latino
  • Janet Murguía, President and CEO, UnidosUS
  • Nathalie Rayes, President and CEO, Latino Victory Project
  • Héctor Sánchez Barba, Executive Director and CEO, Mi Familia Vota
  • Arturo Vargas, CEO, National Association of Latin Elected and Appointed Officials (NALEO)
  • Brent Wilkes, Senior Vice President, Hispanic Federation

Treasury Data: Amount of June Emergency Rental Assistance Resources to Households More Than All Previous Months Combined

New grantee performance data for the month of June on the Emergency Rental Assistance (ERA) program, released today by the Treasury Department, shows a significant increase in the number of households served and the amount of funds provided to households as state and local programs continued to ramp up their efforts. More than $1.5 billion in assistance was delivered to eligible households in the month of June, more than the assistance provided all three previous reporting periods combined. The number of households served in June grew by about 85% over the previous month and nearly tripled since April. In June, 290,000 households were served, up from 160,000 served in May and approximately 100,000 in April. This represents significant progress, but there is still much further work to go to ensure tenants and landlords take advantage of the historic funding available to help cover rent, utilities, and other housing costs and keep people in their homes.

This increase in program performance month-over-month throughout the second quarter reflects the efforts of many grantees during the first quarter to build their systems, staffing, and capacities to take on this major effort. ERA is helping develop a new national infrastructure for rental assistance and eviction prevention that did not previously exist, and as programs are created, they are able to scale quickly. This helps to explain how, for example, the State of Illinois went from reporting zero assistance deployed in May to being the second highest provider of rental assistance among all grantees in June. Across the country, programs are being established to distribute funds both in the short-term as the federal eviction moratorium expires at the end of July, and to support renters over the life of the programs, which – in the case of the ERA under the American Rescue Plan Act of 2021 (ERA2) – will continue until 2025.

On Friday, July 16, Deputy Treasury Secretary Adeyemo visited Houston and Harris County, where he highlighted one of the nation’s strongest local ERA programs. Houston and Harris County operate their ERA program in a regional partnership through two high-capacity, culturally competent non-profit agencies.  Together, they have delivered more than $137 million in assistance to more than 36,000 eligible renters in the Houston metro area. During his visit, the Deputy Secretary learned how the program was working closely with strong, community-based nonprofit agencies that have the ability to provide culturally and linguistically relevant services, calling it “critical for achieving an equitable distribution of these emergency resources.” Administrators have seen success moving programs away from a “first come, first serve” strategy and instead using tactics like prioritizing households with a rental obligation below fair market rent as a proxy for vulnerability to housing insecurity and providing extra support to applicants with an active eviction case. 
While more households are getting help, in many states and localities, funds are still not flowing fast enough to renters and landlords. Treasury is continuing an all-out effort, in coordination with the White House and interagency partners, to get the word out about the availability of rental assistance and to support grantees in ramping up their efforts.

Over the past few months, Treasury has worked with the White House and other agencies as part of a whole-of-government effort to get state and local grantees to speed up assistance by:

  • Publishing guidance and FAQs encouraging direct assistance to tenants, streamlined documentation requirements, cultural competency in programs, and ensuring that funds can assist individuals experiencing homelessness.
  • Highlighting successful grantee programs through roundtables and promising practices.
  • Reaching out to state and local grantees that have yet to distribute rental assistance in their communities to offer additional support.

Treasury has also reiterated its grantees that it will use every tool available to get aid to struggling renters, including by using its statutory authority to reallocate funds that have not been obligated beginning in the fall.

Later today, Treasury will participate in the White House’s second virtual convening on eviction prevention – a follow up to last month’s Eviction Prevention Summit – where the Administration will continue to call for an all-hands-on-deck effort by state and local governments, courts, community organizations, and the legal community to prevent evictions, including moving more quickly to get emergency rental assistance to families in need.

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Emergency Rental Assistance Compliance Report

Interagency Statement on Community Reinvestment Act Joint Agency Action

News Release 2021-77 | July 20, 2021

Joint Release

Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency

WASHINGTON—The Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) are committed to working together to jointly strengthen and modernize regulations implementing the Community Reinvestment Act (CRA).

The agencies have broad authority and responsibility for implementing the CRA. Joint agency action will best achieve a consistent, modernized framework across all banks to help meet the credit needs of the communities in which they do business, including low- and moderate-income neighborhoods.

 

Media Contacts

Federal Reserve
Susan Stawick
(202) 452-2955

FDIC
Julianne Breitbeil
(202) 340-2043

OCC
Bryan Hubbard
(202) 649-6870

OCC Statement on Rescinding its 2020 Community Reinvestment Act Rule

News Release 2021-76 | July 20, 2021

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today announced it will propose rescinding the Community Reinvestment Act (CRA) rule issued in May 2020 and is committed to working with the Federal Reserve (Board) and the Federal Deposit Insurance Corporation (FDIC) to put forward a joint rulemaking that strengthens and modernizes the CRA.

This decision follows the completion of a review initiated by Acting Comptroller of the Currency Michael Hsu shortly after he took office.

“To ensure fairness in the face of persistent and rising inequality and changes in banking, the CRA must be strengthened and modernized,” said Acting Comptroller Hsu. “The disproportionate impacts of the pandemic on low and moderate income communities, the comments provided on the Board’s Advanced Notice of Proposed Rulemaking, and our experience with implementation of the 2020 rule have highlighted the criticality of strengthening the CRA jointly with the Board and FDIC. While the OCC deserves credit for taking action to modernize the CRA through adoption of the 2020 rule, upon review I believe it was a false start. This is why we will propose rescinding it and facilitating an orderly transition to a new rule. I look forward to working with the other agencies to develop a joint Notice of Proposed Rulemaking and building on the ANPR proposed by the Board in September 2020.”

Media Contact

Bryan Hubbard
(202) 649-6870