On November 9, 2020, we released our deck “Financial Services Regulatory Reform in the Biden Administration: Key Areas of Focus.” This deck describes our view of the road ahead for financial regulatory reform under a Biden Presidency and a Republican Senate.  We see most of the action coming from the
Continue Reading Financial Services Regulatory Reform in the Biden Administration: Key Areas of Focus

The SBA has issued a long-awaited Procedural Notice providing guidance on the procedures for changes of ownership of an entity that has received Paycheck Protection Program funds.

Our memorandum contains flowcharts outlining when SBA consent is required for M&A transactions involving borrowers that want to sell their business to another
Continue Reading SBA Guidance: M&A Transactions and PPP Borrowers

On January 13, 2020, the U.S. Treasury Department promulgated its final regulations implementing the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) to reform the authority and jurisdiction of the Committee on Foreign Investment in the United States (CFIUS). The final regulations were released in two parts: one addressing
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Davis Polk submitted a comment letter to the Federal Reserve on its notice of proposed rulemaking to amend its regulatory framework for deciding when a company exercises a controlling influence over another company under the Bank Holding Company Act (BHC Act) and the Home Owners’ Loan Act.  We
Continue Reading Davis Polk Comments on Federal Reserve’s Proposed Rule on Controlling Influence

On November 19, 2018, the Commerce Department’s Bureau of Industry and Security (“BIS”) issued an advance notice of proposed rulemaking (“ANPRM”) seeking public comment on “criteria for identifying emerging technologies that are essential to U.S. national security.”[1]  The ANPRM was issued pursuant to the Export Control Reform
Continue Reading First Step Toward Defining “Emerging Technology” Under Export Control Reform Act

The Federal Reserve’s current approach to determining whether a banking organization has control over another company for purposes of the Bank Holding Company Act can discourage fintech investments by banking organizations.  This impact was discussed in the Treasury Department’s report on nonbank financial institutions, fintech and innovation.  The report highlights
Continue Reading Treasury Calls on the Federal Reserve to Reassess the BHC Act Control Framework to Facilitate Innovation

Vice Chair for Supervision Randal Quarles’ announcement that the Federal Reserve is re-examining its framework for making control determinations under the Bank Holding Company Act is a welcome development.  In critiquing the control framework, which has developed piecemeal over decades, Vice Chair Quarles called it “complex and occasionally opaque” and
Continue Reading Federal Reserve Signals Long-Overdue Re-examination of BHC Act Control Framework

Over the past 30 years, we have seen explosive growth in private equity, both in the number and types of funds and in the enormous allocation of capital to the asset class. Along the way, we have witnessed different cycles of M&A activity involving private equity businesses or teams.

Continue Reading So You Want to Buy a Stake in a Private Equity Manager?

While those of us in parts of the Mid-West and the East Coast received a snowy reminder this week that winter is still with us, a modest thaw of sorts nevertheless arrived on Thursday in Washington, D.C. for banking M&A and views on financial stability. The Federal Reserve has not
Continue Reading A Modest Yet Welcome Thaw for Banking M&A and Financial Stability