On January 1, 2021, the Senate voted to override President Trump’s veto of the National Defense Authorization Act (the “NDAA” or “Act”), which includes over 200 pages of significant reforms to the Bank Secrecy Act (“BSA”) and other anti-money laundering (“AML”) laws that have been working their way through Congress for several years. The Senate’s … Continue Reading
On November 20, 2020, the Office of the Comptroller of the Currency (“OCC”) issued a proposed rule that would impose on large national banks and federal savings associations (collectively, “banks”) a requirement to provide “fair access” to the financial products and services those institutions offer. The proposal is intended to preclude the banks it covers from … Continue Reading
On November 19, 2020, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Financial Crimes Enforcement Network, National Credit Union Administration, and Office of the Comptroller of the Currency (collectively, the “Agencies”) issued a joint fact sheet clarifying how banks subject to the Bank Secrecy Act (“BSA”) should apply a risk-based … Continue Reading
Under the Biden administration, it is unlikely that major financial services legislation like a Dodd-Frank Act will pass in the next few years, especially if Republicans hold the Senate. The Biden Administration will nevertheless have significant opportunities to shape policy through the federal financial agencies. The adage that “personnel is policy” rings especially true for … Continue Reading
On October 23, 2020, the Federal Reserve Board (“FRB”) and Financial Crimes Enforcement Network (“FinCEN”) issued a joint notice of proposed rulemaking that would amend the Bank Secrecy Act’s Recordkeeping Rule and Travel Rule regulations. Comments will be accepted for 30 days after Federal Register publication of the proposed rule on October 27, 2020. The … Continue Reading
On September 21, 2020, the Office of the Comptroller of the Currency (“OCC”) published a letter addressing the authority of nationals banks to hold deposits that serve as reserves for stablecoins, which is a type of cryptocurrency designed to have a stable value. The OCC concludes that national banks and federal savings associations may engage … Continue Reading
On Wednesday, May 20, 2020, the Board of Governors of the Federal Reserve System (the “Board”) announced further details on the Term Asset-Backed Securities Loan Facility (“TALF”). The Board’s announcement contains key documents and forms, including the Master Loan and Security Agreement; updated FAQs and a blackline reflecting changes made against the version published on … Continue Reading
Yesterday, on Sunday, March 15, 2020, in response to the COVID-19 pandemic’s impact on U.S. and global economic activity, the Federal Reserve’s Federal Open Market Committee (“FOMC”) cut the target range of the federal funds rate to 0 to 1/4 percent until such time as the FOMC is “confident that the economy has weathered recent … Continue Reading
On January 8, 2020, Federal Reserve Board (“FRB”) Governor Lael Brainard delivered remarks on the state of Community Reinvestment Act (“CRA”) reform before an audience at the Urban Institute. As we summarized in a client alert, last month, the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”) released … Continue Reading
On October 18, the Supreme Court granted certiorari in Seila Law v. Consumer Financial Protection Bureau (CFPB). The question presented before the Court is “whether the substantial executive authority yielded by the CFPB, an independent agency led by a single director, violates the separation of powers.” In addition, the Court requested that the parties brief … Continue Reading
Changes are coming to the suspension and debarment practices of the Small Business Administration (SBA), and contractors should ready themselves for an uptick in suspension and debarment activity as a result. That’s the takeaway from a new audit report released last week by the SBA’s Office of the Inspector General (OIG) criticizing aspects of the … Continue Reading
On May 9, 2019, the House Financial Services Committee (“HFSC”) unanimously approved an amendment in the nature of a substitute to H.R. 2514, the Coordinating Oversight, Upgrading and Innovating Technology, and Examiner Reform Act (the “COUNTER Act” or the “Act”). The COUNTER Act, introduced by Representative Emanuel Cleaver (D-MO) would be the first major reform … Continue Reading
FEC audit reports often address obscure topics, but today one touched on an important issue for banks. At an open meeting, a majority of FEC Commissioners would not support a staff recommendation that a bank violated the campaign finance laws when it made a loan based on collateral that was commercially reasonable under the banking … Continue Reading
Bank-fintech partnerships are good for consumers and banks, as I recently explained in testimony to Congress during a hearing on the opportunities and challenges in the fintech marketplace. Consumers benefit because banks are able to use fintech to deliver safer, more transparent, lower cost and more convenient financial products and services to consumers over the … Continue Reading
In recent days, Citi strategist Jonathan Stubbs and his colleagues have warned that the global economy is trapped in a “death spiral.”[1] Economist Mohamed El-Erian says that the era when policymakers could rely upon growth from easy money provided by Central Banks is over, and went on too long[2]. Nouriel Roubini, also known as Dr. … Continue Reading
The IMF and World Bank have now opened their fall meetings in Lima, Peru — forty eight years since the last time they met in Latin America. The twelve countries of the Trans-Pacific Partnership (TPP) (which includes the U.S. and Canada, Mexico, Chile and Peru) have just agreed on a historic deal to reduce trade … Continue Reading
Building a “Capital Markets Union” for the 28 EU Member States was presented as one of the main priorities of Jean-Claude Juncker when he was appointed President of the European Commission last year. He saw it, together with his 315 Billion Euros investment plan, as part of his most important policy goal: to help boost … Continue Reading
The G20 Finance Ministers and Central Bank Governors met last weekend in DC during World Bank/IMF meetings to discuss global economic conditions. OECD Secretary General Gurria and UN Secretary General Ban Ki Moon also attended as did IMF Managing Director LaGarde and World Bank President Kim. The US came in for heavy criticism for failing … Continue Reading
The recently completed annual BRICS (the collective name for Brazil, Russia, India, China and South Africa) summit generated three agreements which demonstrate the ongoing move towards self-reliance and strategic cooperation amongst emerging and developing economies. The Agreement on the New Development Bank and the Treaty for the Establishment of a BRICS Contingent Reserve Arrangement have … Continue Reading
The charter of the Export-Import Bank of the United States is due to expire on September 30, 2014. Based on recent events, it is unclear whether Congress will act before this date to extend the charter. The Ex-Im Bank is the official export credit agency of the United States. Its purpose is to support U.S. … Continue Reading
For companies concerned about further Russia sanctions, May 25 is critical. That is the date of elections in Ukraine. If those elections do not take place or if they are disrupted in the eastern part of the country, it is likely the United States would impose much stronger sanctions. To date, sanctions have had a … Continue Reading
