Alexander Radisich

Managing Associate

Los Angeles


Read full biography at www.orrick.com

Alex Radisich, an associate in Orrick's Los Angeles office, is a member of the firm's Structured Finance and Banking and Finance Groups. 

During law school, Alex served as a judicial extern to the Honorable Judge Harry Pregerson of the United States Court of Appeals for the Ninth Circuit, and as a law clerk on the Senate Judiciary Committee for Senator Dianne Feinstein.

Posts by: Alexander Radisich

Agencies Publish Rule Simplifying Capital Calculations for Community Banks

 

On October 29, the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board (FRB) adopted a final rule that simplifies capital requirements for community banks. The final rule allows community banks with less than $10 billion in total consolidated assets, a leverage ratio of greater than nine percent (9%) and limited amounts of off-balance-sheet exposures and trading assets to adopt a simple leverage ratio to measure their compliance with the capital requirements. The simplified leverage ratio framework removes requirements for calculating and reporting risk-based capital ratios for qualifying community banks that opt into the framework. FDIC Release. Federal Reserve Release.

HUD and Justice Department Sign Interagency Memorandum on Enforcement of False Claims Act

 

On October 28, the U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Justice (DOJ) issued a Memorandum of Understanding (MOU) between the two agencies that provides prudential guidance on the appropriate use of the False Claims Act (FCA) for violations by Federal Housing Administration (FHA) lenders. The MOU aims to bring greater clarity to regulatory expectations within the FHA program and ease banks’ worries about facing future penalties for mortgage-lending errors. HUD expects that FHA requirements will be enforced primarily through HUD’s administrative proceedings, but the MOU specifically addresses how HUD and the DOJ will consult with each other regarding the use of the FCA in connection with defects on mortgage loans insured by the FHA. In addition to the MOU, the FHA is simplifying certain certifications that lenders make in connection with the FHA program to better track statutory requirements and address materiality and culpability considerations. HUD Release. DOJ Release.

Agencies Publish Rule Excluding Community Banks from Volcker Rule

 

On July 9, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, the Commodity Futures Trading Commission (CFTC), the Office of the Comptroller of the Currency (OCC) and the Securities and Exchange Commission (SEC) adopted a final rule that excludes community banks from the Volcker Rule, which restricts banking entities from engaging in proprietary trading and from owning, sponsoring or having certain relationships with hedge funds or private equity funds. Under the final rule that was adopted, community banks with $10 billion or less in total consolidated assets, and which have total trading assets and liabilities that are 5% or less than such community bank’s total consolidated assets, will be excluded from the Volcker Rule.

 

CFTC Publishes First Enforcement Manual

 

On May 8, the Division of Enforcement (DOE) of the Commodity Futures Trading Commission (CFTC) published its first Enforcement Manual. The Enforcement Manual establishes certain general policies and procedures to guide the work of the DOE in pursing violations of the Commodity Exchange Act (CEA) and CFTC regulations, and will serve as a general reference for DOE staff in the investigation and prosecution of potential violations of the CEA and CFTC regulations.

Rating Agency Developments

 

On May 8, DBRS published its rating methodology for Public Universities. Methodology.

On May 7, Moody’s published its rating methodology for certain Nonprofit Organizations. Release.

On May 6, DBRS published its methodology for Master Canadian Structured Finance Surveillance. Release.

On May 6, Fitch published its rating criteria for Money Market Funds. Release.

On May 3, Moody’s published its rating methodology for Local Currency Country Risk Ceiling for Bonds and Other Local Currency Obligations. Release.

On May 2, Fitch published its Short-Term Ratings Criteria. Release.

On May 2, Fitch published its rating criteria for Global Structured Finance. Release.

 

Rating Agency Developments

 

On January 3, DBRS published a global rating methodology for Rating Life and P&C Insurance Companies and Insurance Organizations. Release.

On January 2, DBRS published its Master U.S. ABS Surveillance Methodology. Release.

On January 2, DBRS published its methodology for Structured Finance Flow-Through Ratings. Release.

On December 31, DBRS published its methodology regarding Legal Criteria for U.S. Structured Finance. Release.

On December 14, S&P issued a report entitled: RMBS: Reimbursement Curves for Servicer Advance Securitizations Backed by U.S. Residential Mortgage Loan Advance Receivables. Release.

On December 14, Fitch issued a report entitled: Fitch Updates U.S. State Housing Finance Agencies: Pooled Multifamily Housing Bonds Rating Criteria. Release.

On December 13, DBRS issued a report entitled: Operational Risk Assessment for U.S. ABS Originators. Release.

On December 13, Fitch issued a report entitled: Fitch Updates U.S. RMBS Seasoned and Re-Performing Loan Criteria. Release.

Rating Agency Developments

 

On October 10, DBRS published a rating methodology regarding Derivative Criteria for European Structured Finance Transactions. Release.

On October 9, Moody’s published a rating methodology for the Paper and Forest Products Industry. Release.

On October 9, S&P published a table of contents for its Structured Finance Global Ratings Criteria. Release.

On October 8, Fitch published its rating criteria for U.S. RMBSRelease.

On October 8, Fitch published its rating criteria for U.S. Covered BondsRelease.

On October 5, Fitch published its rating criteria for European RMBS. Release.

On October 5, DBRS published an Operational Risk Assessment for European Structured Finance Servicers. Release.

On October 5, DBRS published an Operational Risk Assessment for European Structured Finance OriginatorsRelease.

Rating Agency Developments

 

On June 19, 2018, Fitch published its rating criteria for U.S. Federal Family Education Loan Program Student Loan ABS. Release.

On June 19, 2018, Fitch published its rating criteria for EMEA CMBS. Release.

On June 19, 2018, Moody’s published a rating methodology for Debtor-in-Possession Lending. Release.

On June 18, 2018, Fitch published its rating criteria for U.S. RMBS. Release.

On June 15, 2018, Fitch published its rating criteria for Distressed Debt Exchanges. Release.

On June 15, 2018, Moody’s published a cross-sector rating methodology on General Principles of Liquidity Risk Assessment. Release.

Federal Reserve Board Approves Rule to Limit Risk Concentration Among Systemically Important Financial Firms

 

On June 14, 2018, the Federal Reserve Board (the “Board“) approved a rule to limit the concentration of risk between global systemically important bank holding companies (“GISB“) and their counterparties. Under the rule, a GISB would be limited to a credit exposure of no more than fifteen (15) percent of such GISB’s tier 1 capital to another systemically important financial firm, and a bank holding company with over $250 billion in total consolidated assets would be limited to a credit exposure of no more than twenty-five (25) percent of its tier 1 capital to a counterparty. Release.