Bank Notes

  • April 14, 2016
    On April 12, 2016, the House of Representatives approved H.R. 2947, the Financial Institutions Bankruptcy Act, by voice vote. The legislation, sponsored by Rep. David Trott (R-MI) from the Judiciary Committee, would add a new subchapter to the bankruptcy code to provide a quicker, more specialized form of bankruptcy for failing financial institutions. In February, the bill was approved by the...
  • April 14, 2016
    On Thursday, April 14, 2016, the Ninth Circuit Court of Appeals affirmed, in part, a lower court’s decision in favor of a CFPB enforcement action against Gordon Law Firm in CFPB v. Gordon . The CFPB brought an enforcement action against the firm for violating Dodd-Frank’s ban on unfair, deceptive, and abusive acts and practices, Regulation O for deceiving consumers into believing it was...
  • April 8, 2016
    On Wednesday, April 6, 2016, the FDIC guidance in the form of supplemental "Questions and Answers" (Q&As) to aid applicants in developing proposals for deposit insurance. The supplemental Q&As, which address business planning, provide additional transparency to the application process and supplement the guidance issued November 20, 2014, through Financial Institution Letter (FIL) 56-2014...
  • April 7, 2016
    Today, the Senate Banking Committee held a hearing on the Consumer Financial Protection Bureau's Semi-Annual Report to Congress featuring testimony from Director Richard Corday. The hearing followed Cordray's appearance before the House Financial Services Committee three weeks ago. In contrast to the House hearing, the exchanges between Republican Senators and the Director were considerably more...
  • April 7, 2016
    CFPB Webinar on TRID Issues The CFPB announced (on Thursday, April 7, 2016) a webinar will take place next Tuesday, April 12, 2016, at 2 p.m. EST to answer some common questions about the Know Before You Owe mortgage disclosure rule. The webinar will be hosted by the Federal Reserve and will address specific questions that various stakeholders have raised to the CFPB related to the interpretation...
  • April 6, 2016
    On Wednesday, April 6, 2016, the Federal Deposit Insurance Corporation (FDIC) rescinded Financial Institution Letter (FIL) 50-2009, Enhanced Supervisory Procedures for Newly Insured FDIC-Supervised Depository Institutions. The FIL, among other measures, extended the de novo period for newly organized, state nonmember institutions from three to seven years for examinations, capital maintenance,...
  • April 5, 2016
    On Tuesday, April 5, 2016, the Senate Banking Committee held a hearing entitled “Assessing the Effects of Consumer Finance Regulations.” The hearing, which fell two days before CFPB Director Cordray addressed the committee, featured testimony from a panel of three consumer financial regulation experts and a consumer advocate: Leonard Chanin from the law firm of Morrison and Foerster, David...
  • April 4, 2016
    On Monday, April 4, 2016, the D.C. Circuit Court of Appeals announced oral arguments in the PHH Mortgage case will start on April 12, 2016. The Court ordered the parties to address both the constitutionality and remedies issues by posing the following questions: What independent agencies now or historically have been headed by a single person? For this purpose, consider an independent agency as...
  • April 4, 2016
    On Monday, April 4, 2016, Director Richard Cordray spoke at a Federal Communications Commission (FCC) event revealing proposed broadband disclosures. In his prepared remarks , he highlighted the CFPB’s disclosure efforts in the mortgage, student lending, and prepaid card markets. In support of the FCC’s proposed disclosures, the Director stated, “[p]eople across the country would benefit by the...
  • April 4, 2016
    On Monday, April 4, 2016, Federal Reserve Bank of Boston President and CEO Eric Rosengren offered his assessment of economic and cyber risks. On the economic front, Mr. Rosengren stated the financial markets may be underestimating the growth trajectory for the Fed Funds Rate. While global economic instability earlier in the year—arising from China and Europe—had caused the futures market to...

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