Living Wills

By Harvey Miller and Maurice Horwitz

Weil Business Finance & Restructuring partner Harvey Miller and associate Maurice Horwitz co-authored an article addressing the challenges that arise when resolving a failed global financial institution across national borders.  For legislators and regulators looking for a solution to this issue, the authors argue that the key to solving the cross-border conundrum is not legal harmonization, but rather, mandated coordination among regulators, and a shift in fiduciary obligations from individual legal entities or jurisdictions to the group and the global financial system.

The article titled “A Better Solution Is Needed for Failed Financial Giants” appears in the October 9, 2012 edition of The New York Times in the Dealbook section.

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By Derrick D. Cephas, Dimia Fogam,

Weil Corporate attorneys Derrick Cephas and Dimia Fogam co-authored an article discussing the need for foreign banks to pay close attention to the “ring-fencing” provision in New York State’s bank insolvency law, under which the state can seize certain assets of foreign banks doing business in New York for the benefit of creditors of their New York branches and agencies.

The article titled “Foreign Banks Watch Out: A Look at Liquidation Law in New York” was published on on September 28, 2012.

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By Heath P. TarbertSylvia MayerConray C. Tseng, and Scott Bowling

Corporate partner Heath Tarbert, head of Weil’s Financial Regulatory Reform Working Group, Business Finance and Restructuring partner Sylvia Mayer, and Business Finance and Restructuring associates Conray Tseng and Scott Bowling co-authored an article regarding lessons learned from the first round of “living wills” filings required by the Dodd-Frank Act. This article provides an overview of resolution and recovery planning requirements, addresses how to organize a process for resolution planning, and discusses lessons learned with respect to the substantive development of a resolution plan.

The article titled “Resolve to Make it Better: Lessons Learned in the Resolution Planning Process” appears in the October 2012 edition of The RMA Journal.

View a PDF of the article.

Two years ago, on July 21, 2010, President Obama signed into law a package of financial regulatory reforms unparalleled in scope and depth since the New Deal. The Dodd-Frank Act was intended to restructure the regulatory framework for the US financial system, with broad and deep implications for the financial services industry where the crisis started. But its impact also was intended to be felt well beyond the financial sector, extending federal regulation into areas of corporate governance applicable to all US public companies.

Few provisions of the Dodd-Frank Act took effect in the summer of 2010. Instead, the specifics of the Act were intended to be developed through the federal rulemaking process, as the Act mandated the development and implementation of nearly 400 separate regulations to be enacted by, or coordinated among, nearly a dozen federal departments or agencies. To date, the deadlines for more than half of the required rulemakings have expired. But even with these delays, the last two years have witnessed the promulgation of more than 100 rules and the issuance of many additional proposed regulations for public comment. This Report discusses the many strides that have been made pursuant to the Act to date and forecasts what is yet to come.

Click here for a PDF of the full report.

Sylvia A. Mayer and Heath P. Tarbert, partners in Weil’s Financial Institutions Regulatory practice, published an article with Bank Director magazine discussing the lessons that can be learned from the first-round of “living wills” filings made by nine of the world’s largest financial institutions as required by the Dodd-Frank Act.

Full-Text Article from Bank Director Magazine