Mr. Guynn is head of Davis Polk’s Financial Institutions Group. [Full Bio]

Not enough attention has been paid to the FFIEC’s policy announcement on enforcement which is, we hope, the first step toward fundamental change.  The Policy Statement on Interagency Notification of Formal Enforcement Actions rescinds a 1997 policy statement and addresses the need for coordination in enforcement actions among the Board … Read More

In “Calibrating Capital”, published in the current issue of The Clearing House’s Banking Perspectives, Dr. Thomas F. Huertas discusses the relationship between capital and resolution in reducing the probability of failure and the consequences to the financial system and broader economy given failure.  The article, which includes excellent graphical … Read More

On May 17, 2018, Lawrence Goodman, the President of the Center for Financial Stability, conducted an interview with Sir Paul Tucker.  Sir Paul is the former Deputy Governor for Financial Stability at the Bank of England and is currently the Chair of the Systemic Risk Council, a Harvard Fellow, and … Read More

The increased emphasis by the prudential banking agencies on recovery planning is evidenced by the Comptroller’s recent publication of a new recovery planning module for the Comptroller’s Handbook.  The addition of this module to the handbook flows from the OCC’s previously published guidelines[1] on recovery planning.[2] Recovery planning … Read More

Davis Polk has submitted a comment letter on the Federal Reserve’s proposed amendments to its guidelines on internal appeals of material supervisory determinations (the Proposal).  While we understand, of course, that discretion is a necessary element of supervision, our concern is with discretion that is insufficiently accountable, involves legal … Read More

The Federal Reserve and the OCC have proposed a rule that would recalibrate the enhanced supplementary leverage ratio (eSLR) requirements applicable to U.S. GSIBs and their insured depository institution (IDI) subsidiaries, and related requirements, by tailoring the eSLR levels to 50 percent of each firm’s GSIB surcharge.  The proposal would … Read More

The Stress Buffer Requirements (SBR) Proposal would fundamentally restructure how the Federal Reserve’s stress testing and capital planning framework is used to impose capital requirements for large banking organizations.  In general, the proposal would shift the quantitative capital requirements based on a firm’s pro forma stress losses, which currently are … Read More

The Senate passed the Economic Growth, Regulatory Relief and Consumer Protection Act (S.2155) on March 14 by a filibuster-proof vote of 67 – 31.  The Senate bill still must pass the House, where Rep. Jeb Hensarling (R-TX) and other representatives have said they plan to propose a series of amendments … Read More

In a long-awaited report to the President, the Treasury Department recommended reforming—but not repealing—the orderly liquidation authority (“OLA”) created by Title II of the Dodd-Frank Act (“Title II”), while also recommending the addition of a new Chapter 14 to the Bankruptcy Code.  Concluding “unequivocally that … Read More