The business and financial fallout of the coronavirus pandemic is hitting companies in all areas of the U.S. economy, and weighing on those from industry giants to small local businesses. For many businesses, survival will depend on accessing one or more of the numerous support programs announced by the Federal
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Bank Regulation
Fed Establishes a Term Asset-Backed Securities Loan Facility
The Federal Reserve has created a new secured liquidity facility, called the Term Asset-Backed Securities Loan Facility (TALF), designed to restore liquidity to the asset-backed securities (ABS) market. TALF represents a continuation of the Federal Reserve’s use of its “unusual and exigent” powers to help provide…
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UK Regulatory Supervision During the Coronavirus (COVID-19) Crisis
By Dan Hirschovits & Mark Chalmers on
The UK’s main financial regulators announced a series of measures last week intended to alleviate some of the regulatory burdens facing firms and financial market infrastructures in the wake of the coronavirus (COVID-19) outbreak. These are in addition to initiatives announced by the Bank of England (BoE) and HM Treasury…
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An Assessment of Vulnerabilities, Resiliency, Resolvability of the U.S. Financial System, Today vs. 2008
By The Davis Polk FIG Team on
Posted in Bank Capital, Bank Regulation, Coronavirus (COVID-19), Federal Reserve, Liquidity, Resolution, TLAC
We are posting a presentation on the vulnerabilities, resiliency and resolvability of the U.S. Financial System today compared to 2008. It is based largely on data from the Federal Reserve’s Financial Stability Report published in November 2019. This was originally presented by our partner Randall D. Guynn at the Smoketree…
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FDIC Issues FAQs for Financial Institutions and Consumers Affected by the Coronavirus
By Margaret E. Tahyar & Greg Swanson on
The FDIC has issued two new sets of FAQs, one for financial institutions and the other for consumers, that address issues that may arise with respect to customers and communities affected by the coronavirus. The FDIC is encouraging financial institutions to work with customers especially borrowers from affected industries and…
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Client Memorandum: FDIC Proposes Supervision of ILC Holding Companies
The FDIC proposed a rule to formalize certain longstanding expectations it has for approving applications by new industrial loan companies (ILCs) that would be subsidiaries of a parent company that would not be subject to consolidated supervision by the Federal Reserve. The proposal would require a written agreement…
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Republication: The 2009 Davis Polk Financial Crisis Manual
By The Davis Polk FIG Team on
It is back to the future. Federal Reserve Chairman Powell pledged last night to use the “full range of tools” available to support households, businesses and the economy. Today, Davis Polk republishes its 2009 Financial Crisis Manual in the hope that, even though much has changed in the last 11…
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Volcker 2.1: Agencies Propose Revisions to Covered Fund Provisions
On January 30, 2020, the Federal Reserve Board, OCC, FDIC, SEC and CFTC (the Agencies) proposed amendments to the covered fund provisions of the Volcker Rule. The proposed amendments address long-standing concerns with the over-broad definition of covered fund, the treatment of foreign funds (both public and private), and the…
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Federal Banking Agencies Recognize the Rise of Index Funds and Passive Investing
In a welcome move, two recent actions by the Federal Reserve, OCC and FDIC (the Banking Agencies) recognize the increasing role of fund complexes and passive investing. The Banking Agencies have released a statement under the Federal Reserve’s Regulation O which acknowledges the reality that equity mutual funds may sometimes…
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Encouraging Innovation: Brokered Deposits—What Fintechs Need to Know to Partner with Banks under the FDIC’s Proposed Regulations
In a step forward for the digital transformation of banking and partnerships between banks and FinTechs, the FDIC released proposed changes to its brokered deposit regulations in late December 2019. The proposed changes are designed to update the regulatory framework as much as possible within the constraints of the existing…
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