Category — Reregulation of Banking and Financial Services

On October 15, 2009, the U.S. House Committee on Financial Services (“HCFS”) approved its version of the Over-the-Counter Derivatives Markets Act of 2009 (the “HCFS Approved Legislation”).  The HCFS Approved Legislation would require the regulation of the over-the-counter (“OTC”) derivatives marketplace, including transactions, products and participants.  [Read more →]

The Federal Reserve Board has announced in Consumer Affairs Letter 09-8 that it will implement a consumer compliance supervision program involving nonbank subsidiaries of bank holding companies (BHCs) and foreign banking organizations (FBOs). This compliance supervision program will include activities covered by the consumer protection laws and regulations the Federal Reserve has the authority to enforce. [Read more →]

On August 11, 2009, the U.S. Treasury Department delivered comprehensive legislation to Congress calling for the regulation of the over-the-counter (“OTC”) derivatives market.  Below is a summary of key provisions of the “Over-the-Counter Derivatives Markets Act of 2009” (the “Proposed Act”). [Read more →]

The credit crisis that gripped U.S. and global markets and the subsequent recession have created fresh investment opportunities for private equity funds.  Traditionally, private equity funds were discouraged from investing in banking institutions by two primary factors: (1) high entity valuations dominated the banking industry, and (2) significant investments in banking institutions could trigger considerable regulatory burdens.  However, recently announced regulatory policy changes and significant declines in stock prices across the financial industry have combined to create a more attractive environment for private equity to invest in banking institutions.  [Read more →]

In a far reaching decision delivered on June 29, 2009, the U.S. Supreme Court in Cuomo v. Clearing House Association, LLC,
et al., severely limited the extent to which national banks and their operating subsidiaries are exempt from compliance with state laws, such as fair lending and other consumer laws. The court struck down a regulation adopted by the Office of the Comptroller of the Currency purporting to preempt state law enforcement actions as an unreasonable extension of the preemption statute, 12 USC § 484(a), which in part provides: “no national bank shall be subject to any visitorial powers except as authorized by federal law, [or] vested in the courts of justice . . . .” [Read more →]

In the aftermath of the capital market, credit market and banking crises that have gripped the U.S. economy, President Obama and his administration have called for broad reforms of the American financial system. To that end, the United States Department of the Treasury released the General Explanations of the Administration’s Fiscal Year 2010 Revenue Proposals (the “Tax Proposals”) on May 11, 2009. [Read more →]

The Obama Administration has announced a comprehensive plan for regulatory reform of the financial services industry. The plan, entitled “A New Foundation: Rebuilding Financial Supervision and Regulation” was announced by President Obama and Treasury Secretary Geithner at the White House on Wednesday, June 17, 2009. [Read more →]

Last week, the House of Representatives’ Committee on Financial Services held hearings on “Compensation Structure and Systemic Risk.” The Securities and Exchange Commission is considering similar matters, and Chairman Schapiro has promised that in July the Commission will propose rules requiring additional disclosure regarding how boards consider risks generally and more specifically in the context of compensation setting. [Read more →]

In the aftermath of the capital market, credit market and banking crises that have gripped the U.S. economy, President Obama and his administration have called for broad reforms of the American financial system.  To that end, the United States Department of the Treasury released the General Explanations of the Administration’s Fiscal Year 2010 Revenue Proposals (the “Tax Proposals”) on May 11, 2009.  [Read more →]

In the aftermath of the capital market, credit market and banking crises that have gripped the U.S. economy, President Obama and his administration have called for broad reforms of the American financial system.  President Obama recently suggested that a “more vigorous regulatory regime” would restore confidence in the American financial system and attract foreign capital to U.S.-based investments.  To that end, three notable bills have been introduced since Obama’s inauguration on January 20, 2009.  [Read more →]