On May 12, the FDIC proposed a rule to adopt requirements for FDIC-supervised institutions that engage in foreign exchange transactions with retail customers under Section 742 of the Dodd-Frank Act. The proposed rule enhances margin requirements and consumer protection through disclosure requirements and other elements. Comments must be received within 30 days after publication in the Federal Register. FDIC Release. Proposed Rule.
Month: May 2011
House Subcommittee Hearing on Transparency as Alternative to Risk Retention
On May 11, the House Committee on Oversight and Government Reform Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs held a hearing on whether transparency and disclosure in securitization is a better alternative than the proposed risk retention requirements. Hearing Testimony.
SEC Approves FINRA Rule for Fidelity Bonds
The SEC approved proposed FINRA Rule 4360 which updates fidelity bond requirements under NASD Rule 3020 and NYSE Rule 319. The new rule will become effective on January 1, 2012. FINRA Notice.
SEC Approves FINRA Amendments for ABS Reporting and Fee Rules
On May 10, the SEC approved proposed amendments to FINRA transaction reporting and notification requirements under FINRA Rule 6730 as well as to reporting fees under FINRA Rule 7730, relating to ABS and the method of calculating the Trading Activity Fee for such securities. These requirements will become effective on May 16. FINRA Notice.
NY Fed Paper on Legal Issues in the Secondary Mortgage Market
On May 12, the NY Fed released a paper entitled “A Foreclosure Crisis” on legal issues in the secondary mortgage market. NY Fed Paper. NY Fed Release.
SEC Requests Comment on Assigned Ratings System
On May 10, in connection with Section 939F of the Dodd-Frank Act which mandates the SEC to study the feasibility of an assigned rating system, the SEC published a request for comment on the use of a system in which a public or private utility or a self-regulatory organization would assign an NRSRO to determine credit ratings for structured finance products. Comments must be received within 120 days after publication in the Federal Register. SEC Release. SEC Request for Comment.
Life Settlements Breakfast Briefing
May 26, 2011 – Orrick and Maple Life Financial will be discussing the recent developments in the life settlement market and how the changes are affecting business. Click here for more information and to RSVP.
Dodd-Frank and the Rising Tide of Shareholder Empowerment
May 11, 2011 – The program will cover a host of key developments from a litigation, regulatory and counseling perspective. Click here for more information and to RSVP.
Distressed Debt & Assets Symposium – Navigating the Many Paths to Resolution
May 10, 2011 – This event will bring together top executives and industry specialists from the U.S. capital markets for presentations and informed discussions on the state of distress in the markets. Orrick partner Howard Altarescu will speak on the panel “Residential Mortgage Madness – Where do we go from here?” Click here for more information and to RSVP.
Plaintiffs Firm Announces “Investigation” Into Various Banks Regarding FHA Mortgage Insurance
On May 4, 2011, the law firm Keller Rohrback, which currently represents the Federal Home Loan Banks of Seattle and Chicago in various RMBS cases, announced an investigation into a number of banks and mortgage lenders for violations stemming for those banks’ status as Direct Endorsement Lenders for the Federal Housing Administration (“FHA”). According to the announcement, each of the banks, including JPMorgan Chase, Bank of America, Bear Stearns Residential Mortgage, Washington Mutual, Citigroup, Countrywide, and HSBC, received insurance from FHA for the mortgages it originated. The investigation focuses on the banks’ mortgage lending practices, which Keller Rohrback asserts were lax and riskier than FHA’s standards allowed. Specifically, the law firm intends to review the banks’ due diligence standards, evaluations of borrower income, and property appraisals. The U.S. Department of Justice earlier this week commenced an action in the Southern District of New York against Deutsche Bank alleging similar practices. Release.