Financial Regulation

Firm Advice: Volcker Rule: Observations on Interagency FAQs, OCC Interim Examination Guidelines

By Davis Polk & Wardwell LLP | Posted on

More than six months after the release of final Volcker Rule regulations, banking organizations continue to grapple with a long list of interpretive questions and an opaque process for seeking clarity from the Volcker agencies. Regulatory silence broke for a brief moment this past week in the form of a short interagency FAQ and, from the OCC, interim examination guidelines for assessing banking entities’ progress toward Volcker Rule compliance during the conformance period.

Read the full article here.

Federal Banking Agencies Seek Comments on Their Regulations in Effort to Reduce Regulatory Burden

By Goodwin Procter LLP | Posted on

The FRB, FDIC and OCC (the “Agencies”) published the first of a series of four requests seeking public comments to identify regulations of the respective Agencies that are seen as outdated, unnecessary or unduly burdensome.  The Agencies noted that any changes to their regulations that are designed to reduce regulatory burden must be compatible with the safety and soundness of depository institutions and must be consistent with the Agencies’ statutory mandates.  The Agencies’ first notice of regulatory review and request for comments (the “First Notice”) was issued on June 4, 2014 pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (“EGRPRA”).  Under EGRPRA, the Agencies are required to conduct a review every ten years to identify outdated, unnecessary or unduly burdensome regulations.

(more…)

Flash Boys–Concerns Over High Frequency Trading

By Nahal Bahri, J.D. Candidate 2015 | Posted on

High frequency trading is gaining significant media attention recently as Michael Lewis published his book, Flash Boys: A Wall Street Revolt, on the subject. While high frequency trading (HFT) was introduced into the markets in 1999, this platform for conducting rapid electronic trades of securities has been gaining significant attention by federal regulators including the Securities and Exchange Commission (“SEC”), the Commodity Futures Trading Commission (“CFTC”), and most recently, the Senate.

(more…)

SEC Staff Provides Guidance on Fund Deregistration Applications

By Goodwin Procter LLP | Posted on
The staff of the SEC’s Division of Investment Management (the “Staff”) issued IM Guidance Update No. 2014-5, which provides guidance on responding to selected items in Form N-8F, the from used to apply for deregistration under the Investment Company Act of 1940.  Among other matters, the Guidance Update addresses issues particular to unit investment trusts and appropriate responses for different “Abandonment of Registration” scenarios. (more…)

New Compliance Regime For U.S. Banks: Asset-Based Leverage Ratios and Other Proposals

By Katya Mandzhieva, LL.M. Candidate 2014 | Posted on

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. The U.S. government, through the Federal Reserve used funds under TARP to inject liquidity in the financial system. Even today the printing of money (quantitative easing) is going unabated to prop up the economy. Given this background, the regulation of banks has become increasingly important. Under the new Basel III requirements, U.S. regulators are requiring stronger leverage ratios for major U.S. banks. This would restrict banks to limit their borrowing and force them to fund their operations through equity.

(more…)

SEC Proposes Security-Based Swap Recordkeeping, Reporting and Notification Requirements and Capital Rules for SEC Registrants

By Skadden, Arps, Slate, Meagher, and Flom LLP | Posted on

On April 17, 2014, the Securities and Exchange Commission (SEC) proposed new regulations that would implement the recordkeeping, reporting and notification requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The proposed regulations would apply to registered security-based swap dealers (SBSDs) and major security-based swap participants (MSBSPs), as well as to broker-dealers that are not registered as SBSDs or MSBSPs but are engaged in security-based swap activities.

(more…)

Regulation and the Future of Money: Mobile Payment and Virtual Currencies

By Ivy Wei Liu, LL.M. Candidate 2014 | Posted on

What exactly is Bitcoin? You may have heard a great deal about this in the media. You may know that it is a virtual currency. You may have heard news that the evaluation of Bitcoin once skyrocketed to a record of $900. But you may not have heard an analysis of Bitcoin and other virtual currencies in the legal community.

(more…)

As Some of the Bailout Banks Recover, Taxpayers Start to See Some Payback

By Thiago Frazao, LL.M. Candidate 2014 | Posted on

Some recent news in the financial industry are indicating that bailout banks that received taxpayer money after the 2007-08 financial crisis may be starting to show signals of recovery and paying back some of the investments made by federal governments.

(more…)

Thomas Brown on “Regulation and the Future of Money: Mobile Payments and Virtual Currencies”

By Shea Bettwy, J.D. Candidate 2016 | Posted on

On April 2, 2014, the Berkeley Business Law Journal in partnership with the Berkeley Center for Law, Business and the Economy hosted as part of its Speaker Series a presentation by Thomas Brown entitled “Regulation and the Future of Money: Mobile Payments and Virtual Currencies” to explore how mobile communications are changing the way we define value and authenticate transactions.

Thomas Brown, a subject matter expert on payment systems, provided valuable information and memorable insight about the current status and future of mobile payment systems and virtual currencies.  Mr. Brown is currently a Partner at Paul Hastings in San Francisco, and he used to serve as Senior Counsel for Visa U.S.A. Inc.

(more…)