U.S. Treasury Department

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.

On June 7, 2012 the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Fed), and the Federal Deposit Insurance Corporation (FDIC) (collectively, the Agencies) released three notices of proposed rulemaking (NPRs) that suggest comprehensive revisions to the Agencies’ regulatory capital framework to incorporate the international Basel III standards and Basel capital framework as well as implement certain relevant provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act).  To make it easier to understand the Agencies’ objectives, the overall proposal is divided into three separate NPRs: (1) Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Minimum Regulatory Capital Ratios, Capital Adequacy, Transition Provisions, and Prompt Corrective Action (Basel III NPR); (2) Regulatory Capital Rules: Standardized Approach for Risk-Weighted Assets; Market Discipline and Disclosure Requirements (Standardized Approach NPR); and (3) Regulatory Capital Rules: Advanced Approaches Risk-based Capital Rule; Market Risk Capital Rule (Advanced Approaches and Market Risk NPR).  Each NPR is summarized below. [click to continue…]

Derrick D. Cephas, the head of Weil’s Financial Institutions Regulatory practice, published an interesting article with Bank Director magazine detailing how banks can approach new industry regulations in a constructive manner and how the new rules have changed the regulatory landscape.

Full-Text Article from Bank Director Magazine

By: Alex Radetsky

On October 3, 2011, the Financial Stability Board (“FSB”) , an organization comprised of governmental and other financial authorities from around the world, including the SEC, Federal Reserve and Deptartment of Treasury for the U.S., approved a package of policy proposals meant to address systemic risk and “too big to fail” issues which will be submitted to the G20 Summit in November.  The policy proposals include:

  • Standards for effective resolution regimes for financial institutions
  • Requirements that globally important systemically important financial institutions (“G-SIFIs”) develop and submit recovery and resolution plans
  • The development of cooperation agreements and cross-border crisis management groups by home and host regulators of G-SIFIs
  • Additional loss absorbency requirements for G-SIFIs
  • Improved data systems for risk management and assessments of the adequacy of supervisory resources, among other measures to enhance the intensity and effectiveness of the supervision of financial institutions
  • Enhanced international standards for the robustness of core financial market infrastructures

[click to continue…]

by Doug Warner, Michael Weisser, Richard Ellenbogen and Carlos Larkin

The Department of the Treasury, the Federal Reserve Bank of New York and the Board of Governors of the Federal Reserve System have announced the adoption of Form SLT. The stated purpose of the Form SLT report is to gather timely and reliable information on foreign-resident  holdings of long-term US securities and on US-resident holdings of long-term foreign securities in order for the Department of the Treasury to prepare its US Balance of Payments accounts and international investment positions, and to better formulate international financial and monetary policies. Form SLT requires reporting with the Federal Reserve Bank by any US-resident entity holding consolidated “reportable long-term securities” equaling or exceeding $1 billion in total fair market value, effective as of September 30, 2011, with an initial required filing date of  October 24, 2011.

Who Must Report

All US persons who are US-resident custodians, US-resident issuers or US-resident end investors whose holdings of long-term reportable securities meet or exceed the $1 billion reporting threshold are required to file Form SLT. Subject to the exclusions … 

Click here to access a full-text PDF of this alert.