The Department of the Treasury and the Department of Energy have issued guidance regarding the rules for obtaining a grant from Treasury (“section 1603 program”) in lieu of a production tax credit under section 45 of the Internal Revenue Code (“Code”) or an investment tax credit under Code section 48.  Under this program, which was enacted as part of the American Recovery and Reinvestment Act, the Department of the Treasury makes payments to eligible persons who place in service specified energy property and apply for such payments.   [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 →]

The Helping Families Save Their Homes Act of 2009

On May 20, 2009, the President signed The Helping Families Save Their Homes Act of 2009. The new law contains a number of provisions, including amendments to the HOPE for Homeowners Program, protections for servicers of mortgage loans who modify mortgage loans, and extensions of the credit facilities from the U.S. Treasury to the Federal Deposit Insurance Corporation. However, Section 404 of the Act amends the Truth in Lending Act (TILA) to require that a new notice be given to consumers within 30 days after the sale, transfer or assignment of the consumer’s mortgage loan. [Read more →]

In addition to the previous announcement that commercial mortgage-backed securities (CMBS) issued on or after January 1, 2009 are eligible collateral under the TALF, the Federal Reserve has announced that certain high-quality commercial mortgage-backed securities issued before January 1, 2009 (legacy CMBS) will become eligible collateral. [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 →]

Today, May 20, 2009, President Obama signed the Fraud Enforcement and Recovery Act, authorizing more than $280 million for federal fraud enforcement and specifically expanding the reach of federal fraud statutes.  With the powers now being aggressively exercised by the Special Inspector General for the Toxic Asset Recovery Program, and the mandate issued to the inspectors general of all funding agencies under the American Recovery and Reinvestment Act,  criminal, civil and administrative scrutiny of the use and accounting for all federal funding and private lending practices will be intense.  [Read more →]