Topic: Banking

A Regulatory Tsunami is Building in Washington…

The business community as a whole can expect President Obama’s second term to be one of most intense periods of regulatory activity in nearly 40 years. But the health care, energy, and financial services industries will be the hardest hit. From law firm Venable: “Several themes will shape the regulatory process over the next four… Read more »

On HSBC: What’s the Going Punishment for Laundering Drug Money?

What’s the going punishment for laundering drug money? If you’re one of the world’s largest banks, it’s about six weeks’ worth of earnings and no jail time for your executives. Not too bad for committing a felony, no? Iowa Senator Charles Grassley and the former Inspector General of the Treasury Department’s Troubled Assets Relief Program… Read more »

[Video] Talking Derivatives Reform

From Bloomberg Law, a discussion with Tangent Capital Partners’ Chris Whalen and Fusion IQ’s Barry Ritholtz – “two of the brightest guys in the business” according to host Lee Pacchia – on the subject of reform in the multi-trillion dollar derivatives market. The money quotes (and there are many): “[The derivatives market] is not just… Read more »

Court Gives Private Equity Funds a Pass on ERISA Obligations

“ERISA treats all members of a ‘controlled group’ as a single employer for purposes of its provisions imposing liability on employers in connection with the termination of an underfunded single employer pension plan or a withdrawal from an underfunded multi-employer pension plan. As a result, if an employer terminates or withdraws from an underfunded pension… Read more »

Corporate Bankruptcy Law: Latest Need-to-Know from JD Supra

[Link: Bill on Bankruptcy: Who’s to Blame for the Hostess Liquidation? – Bloomberg Law] The impending dissolution of Hostess Brands – maker of Twinkies, Ho Hos, and Wonder Bread – has captured headlines over the past few weeks. But Hostess’s story isn’t the only bankruptcy law news of relevance to Corporate America. For your reference:… Read more »

US Treasury Exempts Foreign Exchange Swaps & Forwards from Dodd-Frank Rules

“Foreign exchange (FX) swaps, the second largest derivatives trading market, [have] been exempted from Dodd-Frank regulation by the U.S. Treasury. Though some Democratic legislators criticized the move, the Treasury went forward with the exemption citing the high-levels of risk management inherent in FX trading. ‘Unlike other derivatives, FX swaps and forwards already trade in a… Read more »

FSOC Proposes Money Market Reforms: You Should Know…

“The FSOC’s proposals also set the stage for fresh tension between a vocal group of regulators, who feel that despite limited reforms in 2010, money market funds are still vulnerable to havoc-wreaking asset runs, and the fund industry, which has devoted significant public-relations efforts to arguing that reform would harm investors by making money market… Read more »

Focus on: High Frequency Trading and the Troubled Markets

Bloomberg Law’s Lee Pacchia talks with Ralph Ferrara, partner at Proskauer Rose and General Counsel of the Securities and Exchange Commission from 1978 to 1981, about high frequency trading, the problems it caused, and what solutions are needed. Some highlights: “What we’ve pulled out of the process is human judgment making; that’s got to be… Read more »

Doing Business in China: A JD Supra Legal Reader

A cautionary tale kicks off this latest edition of Doing Business in China: Sixing Liu, a Chinese national with U.S. residency, was arrested and charged with export control violations when returning from a trip to China one year ago. From law firm Miller Canfield: “Liu allegedly took export-controlled technical data on military technology (Controlled Data)… Read more »

Dodd-Frank Q&A: Proposed New NYSE and NASDAQ Compensation Committee Rules

Financial reform is a hot issue in this year’s presidential race (no surprise, of course) – but while the candidates duke it out on the finer points of how they would handle matters, Dodd-Frank marches on. The latest? Regulations on the independence of compensation committees at companies listed on the nation’s two largest stock exchanges.… Read more »

Repeal Dodd-Frank? But What Is It, Exactly?

“MR. LEHRER: You want to repeal Dodd-Frank? MR. ROMNEY: Well, I would repeal it and replace it.” (New York Times) The Dodd–Frank Wall Street Reform and Consumer Protection Act, both criticized and praised by Republican presidential candidate Mitt Romney in last night’s inaugural presidential debate, was passed in 2010 purportedly to end the practices that… Read more »

European Commission Proposes Centralized Bank Supervision

Earlier this month, the European Commission published its legislative proposal outlining the creation of a single supervisory mechanism that will allow the European Central Bank (ECB) to supervise Eurozone banks. The move would give the ECB broad-reaching powers normally held by national regulatory authorities to police banks throughout the region, laying the groundwork for a… Read more »

CFPB Update: Credit Reporting Agencies Now Subject to Heightened Scrutiny

Earlier this month, the Consumer Financial Protection Bureau issued the procedures it will use to verify that credit bureaus and other consumer reporting companies are complying with federal financial laws. It’s the latest move in the CFPB’s efforts to supervise “larger participants” in the consumer financial markets as required by the Dodd-Frank Act. According to… Read more »

California Law Update: Toxic Products, Iran Investments, Non-Competes, Teacher Layoffs, More

Allen Matkins’ Eileen Nottoli on why businesses that sell consumer products in California need to be aware of – and act on – the state’s new Safer Consumer Product regulations. [Link: New Consumer Product Regulations: Manufacturers, Importers and Retailers Need to Prepare] For your reference, a JD Supra roundup of commentary on a range of… Read more »

Sanctions Update: U.S. Turns Up Pressure on Iran, Syria

Earlier this month, President Obama signed into law the Iran Threat Reduction and Syria Human Rights Act of 2012. From law firm Skadden Arps: “The Act is the U.S. government’s latest response to Iran’s illegal nuclear program and the situation in Syria, and it reflects an intensified effort to counter perceived efforts by non-U.S. companies… Read more »