Financial services regulatory reform in 2018 is complex and evolving. To assist in navigating this landscape, we have prepared a reference tool that provides context and summarizes current developments across a range of key regulatory areas, agencies and actors. We will continue to track these issues and provide updated versions … Read More
Administrative Law
Banking Regulators’ Examination Authority Does Not Override Attorney-Client Privilege
Notwithstanding the venerable status of the attorney-client privilege and the important purposes it serves, the federal banking regulators and the Consumer Financial Protection Bureau have taken the position that they have the legal authority to override the privilege and compel supervised institutions to produce information protected by the privilege. Seven … Read More
Legal Interpretations in Examination Appeals Should be More Transparent
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
Davis Polk Financial Services Regulatory Reform Tool–March 2018
Financial services regulatory reform in 2018 is complex and evolving. To assist in navigating this landscape, we have prepared a reference tool that provides context and summarizes current developments across a range of key regulatory areas, agencies and actors. We will continue to track these issues and provide updated versions … Read More
The CFPB and the Rule of Law
The Mulvaney Memo on the CFPB and the rule of law is one of the most remarkable documents to be published by an agency head in many years. It signals a deep commitment to the rule of law as a philosophical concept and as an important brake on agency discretion … Read More
As Regulatory Reform Push Continues, Federal Reserve Vice Chair for Supervision Randal Quarles Sets Out His Guiding Principles
Federal Reserve Vice Chair for Supervision Randal Quarles recently sought to answer the question that he has been asked most frequently since assuming his post three months ago: What’s next? He expressed his support for the reforms that have made the financial system stronger and more resilient since the Financial … Read More
Leveraged Lending—A New Era for Guidance Issued by the Banking Agencies?
The Leveraged Lending Guidelines are in an uncomfortable state of limbo. After the GAO ruling that the Guidelines are a “rule” under the Congressional Review Act, they are no longer effective as guidance, but the silence from the OCC, the Federal Reserve, and the FDIC has been deafening.[1] The uncertainty … Read More
Treasury Asset Management and Insurance Report Makes Three Recommendations Tied to the Volcker Rule
Buried in the latest Treasury Report, the third in a series, are important gems on the Volcker Rule and on the concept of controlling influence.[1] Of the three interesting new recommendations, two are limited to the covered funds portion of the Volcker Rule and build upon the recommendations in the … Read More
Treasury Report Recommends Additional Process and Constraints for Market Regulators
The U.S. Treasury’s new Capital Markets Report recommends additional administrative requirements for regulatory actions by the SEC and the CFTC (the “Agencies”). If adopted, the process by which the Agencies issue new regulations and guidance may be more transparent and subjected to more rigorous cost-benefit analysis. Rulemaking and issuing no-action … Read More
Thoughts on Suit to Vacate CFPB Arbitration Rule
Posted in Administrative Law, Bank Regulation, CFPB, Dodd-Frank, Final Rule, PHH v. CFPB, U.S. Congress
Many have commented on the suit filed last week challenging the CFPB’s arbitration rule, but few have considered what impact, if any, the suit could have on the fast-approaching compliance date of March 19, 2018.
As a reminder, the Chamber of Commerce and other trade associations filed a long-anticipated suit … Read More