Financial Services Spotlight

October 2016 Developments

Posted by Roy Andersen on Nov 6, 2016 12:00:00 PM

Overview

The SEC adopted proposed and final rules regarding the activities of and definitions of clearing agencies.  Relations with Burma and Cuba continue to be eased.  The CFTC has promulgated proposed rules on implementing its cross border rules on corporate practices.  The banking agencies published proposed rules on cyber security.

Read More

Topics: SEC, Cuba, Qualifying Master Netting Agreements, RESPA, Burma, Covered Clearing Agencies

March 2016 Second Half Developments

Posted by Roy Andersen on Apr 6, 2016 12:00:00 PM

Overview

The Fed published a proposed rule that would establish a credit limit for doing business with other large institutions.  In effect, this is a super lending limit for large banks.  It applies at a fairly low level of $50 billion in assets. This is a Dodd-Frank requirement and perhaps part of the rush of the Obama administration to put as many rules as possible over the finish line before a potential change of political will.  The former Federal Bank of the Middle East now known as FBME continues its fight against death sentence effect of the US government determining that a bank is of “primary money laundering concern.” The effect of such a determination can be seen in the Credexbank FinCEN notice whereby the bank was put out of business.   FBME is fighting against this determination and is at least having an independent party determine whether it is indeed engaged in money laundering activities such that it should be put out of business.

Read More

Topics: OFAC, North Korea, Cuba, European Union, CFTC, ESMA, EMIR

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.  

Read More

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

February 2016 First Half Developments

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

Overview

The BCFP published a Compliance Bulletin to remind banks that they must have reasonable written policies and procedures to insure that any consumer reporting data they pass on to consumer reporting agencies is accurate and complete.  This has been a requirement for some time, but the BCFP has notice an uptick in inaccurate date, particularly with regard to deposit account data.  Banks can expect increased focus on these procedures during the next consumer compliance examination.  After 7 years of review, the CFTC has determined that Korea has sufficient supervisory systems in place to permit certain Korean swaps entities to do business with U.S. persons.  OFAC is abandoning certain reporting requirements in connection with remittance transactions with Cuba.

Read More

Topics: OFAC, Cuba, Currency Transaction, CFTC, BCFP, Korea, Credit Reporting, FDIC, Foreign Regulatory

January 2016 Second Half Developments

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

Overview

Longstanding OFAC rules were changed regarding Iran and Cuba.  The Cuban sanctions were the first imposed by the Treasury in the 60’s and have been the model for sanctions programs since then.  Given the results of the 50- plus-year restriction on the Cuban economy it is safe to say that their economy simply stopped working and the Cuban people have eked out a living under mid-last century conditions.   Of course, a socialist economy may have also contributed to the dire circumstances.   If Iran truly abandons its nuclear program, then the leverage provided by the sanctions proves for all time their value as a political tool and another reason not to resort to war.  Treasury provided a concise up-to-date description of the Treasury securities market that was educational for me-- whose last real understanding of that market was forged when primary dealers ran the show.

Read More

Topics: SEC, Iran, Cuba, Foreign Banking, OFAC rules, JCPOA

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.

Subscribe to the Spotlight

Posts by Topic

see all