Fed Governor Daniel K. Tarullo, 64, announced he would resign in April in a two-sentence letter on February 10, 2017 without too much explanation. His term does not end until 2022. Mr. Tarullo’s departure would bring the number of vacancies on the Board to three. Senate Republicans have preserved two vacancies by refusing to hold […]
Tarullo Stepping Dow, Leaving Three Vacancies on the Fed’s Board
France Lashes Out Against Dollar in Wake of BNP Paribas Ruling
Last week French global banking giant BNP Paribas (BNP) settled with U.S. authorities in a case which they were convicted of committing large-scale violations of U.S. economic sanctions. BNP’s guilty plea cost them $8.9 billion in fines along with a temporary ban on dollar-clearing transactions. The ruling has brought to the forefront the issues that […]
New Compliance Regime For U.S. Banks: Asset-Based Leverage Ratios and Other Proposals
The financial crisis generated concern that banks were taking excessive risks and they did not have adequate capital to run their operations. It was not clear if the existing Basel framework demonstrated weakness to contain the crisis or if it was the framework that led to the liquidity crisis and ultimately to the financial crisis. […]
Federal Regulators Issue Joint Guidance on Company-Run Stress Tests for Mid-sized Banks
On March 20, 2014, the Board of Governors of the Federal Reserve System announced the results of the annual company-run stress tests for the 30 largest banking institutions, concluding that the institutions have improved their capital positions and are now better positioned to endure conditions of extremely severe stress than they were five years ago. […]
Federal Reserve Adopts Final Rule Implementing Enhanced Prudential Standards for Certain Domestic Bank Holding Companies and Foreign Banking Organizations
On February 18, 2014, the Board of Governors of the Federal Reserve System approved its final rule implementing enhanced prudential standards for certain domestic bank holding companies and foreign banking organizations (the Final Rule). While the Final Rule does not implement every provision of the December 2011 and December 2012 proposed rules, the Final Rule […]
BCBLE Lecture Series: Eugene Ludwig on Putting Dodd-Frank in Context
On February 24, the Berkeley Center for Law, Business and the Economy (BCBLE) hosted a lunch presentation featuring Eugene Ludwig, founder and CEO of Promontory Financial Group. In his talk titled “Financial Regulation in the Post Reform Era: Putting Dodd-Frank in Context,” Ludwig shared his perspectives on the Dodd-Frank Act and other regulation efforts within […]
FRB Proposes to Repeal Regulations P and DD and Amend Regulation V
The FRB issued a Notice of Proposed Rulemaking to repeal its regulation implementing the Truth in Savings Act, Regulation DD, and the regulation implementing the provisions of the Gramm-Leach Bliley Act protecting the privacy of consumer financial information, Regulation P.
Outsourcing by Financial Services Companies: Impact of the OCC and FRB Guidelines
Outsourcing has become a critical component of financial institutions’ management of their business operations and control of their costs. In addition, institutions are outsourcing increasingly complex and sensitive banking and financial operations to third parties. In light of these developments, the Office of the Controller of the Currency (OCC) and the Federal Reserve Board (FRB) […]
The Volcker Rule: Impact on Banking Entities’ Investments in Trust Preferred CDOs
On December 10, 2013, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Securities and Exchange Commission, and the Commodity Futures Trading Commission released final rules (the Final Rules) to implement Section 619 of the Dodd-Frank Wall Street and Consumer Protection […]
Risk-transfer Deals Pose Roadblocks to Federal Reserve’s New Minimum Liquidity Proposal
As banks structure deals to circumvent the Federal Reserve System’s new liquidity coverage ratio proposal (‘LCR’), regulators scramble to protect the financial industry from another fiscal meltdown.