Financial Services Spotlight

January 2017 Developments

Posted by Roy Andersen on Jan 31, 2017 12:00:00 PM

Overview

A Donald Trump effect was apparent with the January 26th Federal Register-- it was one of the shortest Federal Register volumes seen in some time—even the pre-holiday Registers sport more pages.  The CFPB published a rule requiring incentive programs for sales of consumer products be subject to extraordinary controls adapted to such sales campaigns.  These would be in addition to and perhaps duplicative of the requirements of primary federal regulators. 

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Topics: OFAC, CFPB, CFTC, Sudan Sanctions, Incentive Sales Programs, Loss Absorbing Capacity

July 2016 Second Half Developments

Posted by Roy Andersen on Jul 27, 2016 12:00:00 PM

Overview

The CFPB has issued its proposed regulations to regulate payday loans and other similar high cost extensions of credit. An extensive study of these types of loans revealed that there were some unfair and deceptive practices and a lack of focus on whether the consumers had the wherewithal to repay these loans on schedule without continuing to renew such credits.

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Topics: CFPB, Daylight Overdrafts, Payday Loans, Home Mortgage Data, Transnational Criminal Organizations

July 2016 First Half Developments

Posted by Roy Andersen on Jul 18, 2016 12:00:00 PM

Overview

The CFPB has issued its regulations to implement one of the few legislative changes to ease the compliance burden on banks.  The privacy rules have produced one of the least helpful disclosure requirements on how banks treat your confidential information.  Most consumers received rafts of these confusing disclosures to no useful end, except to trip up banks at examination time.  These were so burdensome that Congress actually provided some relief.  The CFPB rule demonstrates how confusing and overlapping rules are since the bulk of the rule is to ease interactions with other disclosure rules that intersect with the privacy notices.  The CFPB also published a special report on the mortgage servicing business highlighting the compliance problems in that business and suggesting that a crackdown was coming.

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Topics: OFAC, CFPB, Penalty Calculations, Mortage Servicing, Regulation P

May 2016 Second Half Developments

Posted by Roy Andersen on May 31, 2016 12:00:00 PM

Overview

The CFPB has issued a proposed rule that would restrict the use of mandatory arbitration in consumer finance contracts.   Arbitration is generally more expensive for consumers and eliminates the chance for class actions.  The proposed rule would cover a broad range of financial products.  The CFTC has issued its final rule on cross-border application of its margin rules on uncleared swaps. One Commissioner described the new rule as “muddled methodology” as well as impractical and unnecessary and harmful to US businesses. 

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Topics: Margin Requirements, CFPB, Iraq, Burma, Arbitration Agreements

April 2016 Second Half Developments

Posted by Roy Andersen on May 5, 2016 12:00:00 PM

Overview

The President issued an order subjecting certain Libyan persons to asset blocking and travel restrictions due to the deteriorating conditions in Libya.  OFAC will most likely update its sanctions to reflect the President’s actions. 

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Topics: Libya, OFAC, CFPB, RESPA, NCUA, Mortgage Servicing, Regulation Z

April 2016 First Half Developments

Posted by Roy Andersen on Apr 16, 2016 12:00:00 PM

Overview

Crowdfunding portals will have to do AML checks on the investors in such proposed financings.  The parties offering such services will be defined as brokers or dealers in securities for AML purposes.  OFAC is imposing new sanctions rules on Hizballah and on the country of Burundi.

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Topics: CFPB, SDN List, Somalia, Burundi, South Sudan, Hizballah, Liquidity Ratios

February 2016 Second Half Developments

Posted by Roy Andersen on Feb 29, 2016 12:00:00 PM

Overview

Old acronyms die hard.  No less an authority than a senior attorney at the Federal Reserve Bank of New York advised me that no one calls the Bureau of Consumer Financial Protection the BCFP—even though this is what it is called in the Dodd-Frank Act.  Instead, even the agency refers to itself as the CFPB.  Accordingly, we will get in step for future entries, as we have with the Met Life Building, the Ed Koch Bridge, and Kennedy Airport.  A rose by any other name would smell as sweet.  The OCC continues to study its leveraged lending guidelines.   Foreign swap transactions executed in the U.S. will benefit from some exemptions.  The healthy dividend paid by the Fed to the member banks will be cut back based on new law adopted in January.  

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Topics: Libya, Dodd-Frank, Cuba, CFPB, Foreign Transactions, Leveraged Lending, Reserve Banks, OCC, BCFP, No-Action Letters

About the Spotlight


The Financial Services Spotlight examines the regulatory and technology developments impacting banks, asset managers and other financial services providers—where challenges meet opportunities.

 

Meet the Authors


Roy C. Andersen, of counsel in Sullivan & Worcester's New York office, is a member of the Corporate Department. Mr. Andersen focuses on bank regulatory and compliance matters, including international banks and their branches and agencies in New York.

Joel Telpner, partner in the firm's New York office, is a seasoned advisor, strategist and problem solver. Mr. Telpner brings more than 30 years of legal experience in a career that includes time as an AmLaw 100 partner, the former U.S. general counsel of a global financial institution, and a venture capitalist. He is recognized for his ability to deftly manage complex financial transactions, especially those involving sophisticated structured finance and derivatives matters and has an extensive and unique combination of transactional and regulatory experience.

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