On January 14, the European Union’s three-branch government reached an agreement in Strasbourg, France, to regulate derivatives trading and other complex instruments.
Banks Dodge One Volcker Rule Bullet But Anticipate Another
Banks will avoid a costly, forced divesture of assets after an “interim final rule” was approved by regulators on January 14, exempting certain collateralized debt obligations backed by trust-preferred securities (TruPS CDOs) from ownership restrictions imposed by the Volcker Rule.
Five Federal Agencies Adopt Interim Rule Providing Relief from the Volcker Rule with Respect to Collateralized Debt Obligations that Hold Trust Preferred Securities
The Federal Reserve Board, the OCC, the FDIC, the SEC and the CFTC (collectively, the “Agencies”) adopted an interim final rule (the “Interim Rule”) that provides relief from certain requirements of the Volcker rule for banking entities that hold investments in or that have sponsored issuers of collateralized debt obligations (“CDOs”) backed by trust preferred securities (“TruPS”). (more…)
Will the Supreme Court Further Limit the Powers of Bankruptcy Judges in Executive Benefits?
On Tuesday, January 14, 2014, the Supreme Court heard Executive Benefits Insurance Agency v. Arkison, a case that will settle important questions regarding the limits of bankruptcy judges’ powers.
D.C. Circuit’s Ruling on “Net Neutrality” Creates Waves in Internet Marketplace
The Silicon Valley and Internet companies worldwide are pouring over a landmark decision, released yesterday, by a three-judge panel of federal appellate judges sitting in Washington, D.C.
Compensation Clawbacks and Code Section 409A Acceleration
When the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) became law in 2010, it included a requirement for public companies to recoup, or “clawback,” incentive compensation from executives in the event of certain accounting restatements.
SEC Approves New FINRA Supervision Rules
Financial Industry Regulatory Authority (“FINRA”) rules require broker-dealer members to establish and maintain a system and written procedures to supervise the activities of their personnel, which are reasonably designed to achieve compliance with the federal securities laws and FINRA rules.
Men’s Wearhouse Moving Closer to Jos. A. Bank Takeover
The Fremont, California-based men’s suit retailer has made its second offer to take over its smaller rival, Jos. A. Bank.
The Federal Reserve Approves Goldman Sachs, JP Morgan’s Capital Management Plans
In early December, two Wall Street giants, Goldman Sachs and JP Morgan Chase, finally satisfied the Federal Reserve’s stiffer requirement with improved capital plans. The banks successfully put the matter behind them by resubmitting capital plans after the regulators found “significant weaknesses” in the ones submitted in March during a stress test. “We are pleased that the Fed determined” the bank’s stress test “process improvements met their expectations,” JPMorgan’s chief executive Jamie Dimon said in a statement.
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 Act, commonly known as the “Volcker Rule.”