All articles tagged with #dodd frank act
The Supreme Court has given homeowners another chance to compel Bank of America and other large banks to pay interest on mortgage escrow accounts, overturning an appeals court ruling that favored the bank. The decision emphasizes that not all state banking laws are pre-empted by federal law, particularly under the Dodd-Frank Act.
The Supreme Court has given homeowners another chance to compel Bank of America and other large banks to pay interest on mortgage escrow accounts, overturning an appeals court ruling that favored the bank. The decision emphasizes that not all state banking laws are pre-empted by federal law, particularly under the Dodd-Frank Act.
The next US financial crisis could resemble the last, with debt boom and default cycles remaining consistent throughout history. The crisis, anticipated to occur electronically, may be aggravated by the alienation of customers due to the growing automation of financial institutions and the closure of physical banking services in certain areas. The Dodd-Frank Act's "bail-in" approach may face challenges due to inadequate resources, potentially leading to a request for another large bailout, prompting the House Republican Congress to seek measures to lastingly obviate banking system bailouts.
The Securities and Exchange Commission (SEC) has adopted new Regulation SE to establish a registration and regulation framework for security-based swap execution facilities (SBSEFs). This move aligns the SEC's regime closely with the Commodity Futures Trading Commission's (CFTC) rules for swap execution facilities, aiming to increase transparency and integrity in the security-based swap market. The adoption addresses trade execution requirements for security-based swaps, cross-border application, conflict of interest mitigation, and promotes consistency with existing rules. Entities meeting the definition of SBSEF can apply for registration within 180 days of the effective date of the rules.
The Securities and Exchange Commission (SEC) has adopted new Rule 13f-2 to increase transparency in short selling by making short sale data publicly available. The rule requires institutional investment managers to report specified short position data and short activity data for equity securities. The SEC will aggregate and publicly disseminate the data on a delayed basis. Additionally, the SEC has amended the National Market System Plan (NMS Plan) to require CAT reporting firms to indicate the use of the bona fide market making exception in short sales. These measures aim to enhance transparency and provide regulators and the public with more information about short sale activity in the equity markets.
The Securities and Exchange Commission (SEC) has adopted Rule 10c-1a, aimed at increasing transparency in the securities lending market. The rule requires certain persons to report information about securities loans to a registered national securities association (RNSA) and mandates RNSAs to make certain information publicly available. The SEC believes that this rule will enhance oversight, enforcement, and promote fair and efficient markets. The compliance dates for the new rule will be staggered, with full implementation expected within 24 months.
The Supreme Court is set to hear oral arguments in a case that challenges the constitutionality of the Consumer Financial Protection Bureau (CFPB), an agency with unprecedented regulatory enforcement powers. The CFPB's funding mechanism, which allows it to operate independently of Congress, is being questioned for violating the separation of powers. The agency has faced controversy for its actions against American companies, restrictions on short-term loans, attempts to ban arbitration agreements, and expansion of anti-discrimination provisions. The court's decision could have significant implications for the agency's power and accountability.
New York Attorney General Letitia James is leading a multistate effort, with attorneys general from 22 other states and the District of Columbia, to urge the Supreme Court to overturn a decision that threatens the existence of the Consumer Financial Protection Bureau (CFPB). The CFPB was created under the 2010 Dodd-Frank Act after the 2008 financial crisis. The Supreme Court agreed in February to hear arguments after the Biden administration appealed the U.S. 5th Circuit Court of Appeals' decision that the CFPB's funding method is unconstitutional.
The Securities and Exchange Commission (SEC) has awarded a record $279m to an unnamed whistleblower, the largest in its history, for providing information and assistance that led to a successful enforcement action. The identity of whistleblowers is protected under the 2010 Dodd-Frank Act, and rewards can range from 10% to 30% of the money collected when sanctions exceed $1m. The SEC's whistleblower program has aided enforcement actions resulting in the return of over $4bn in ill-gotten gains and interest.
The Biden administration is urging federal banking regulators to reinstate rules rolled back during the Trump administration for banks with assets between $100 billion and $250 billion. The president's proposed safeguards include liquidity requirements, annual supervisory capital stress test requirements, comprehensive resolution plans, and strong capital requirements for banks. The administration blames regulatory rollbacks during the Trump administration for contributing to recent banking industry woes and wants to reduce the risk of a future banking crisis. The Bank Policy Institute expressed disappointment, while Better Markets applauded the new efforts.
Democrats are defending their vote for a 2018 banking deregulation bill that President Biden and other members of the party are blaming for last week’s stunning collapse of Silicon Valley Bank and Signature Bank. Proponents of the legislation saw it as a way to provide relief to small and midsize banks that were struggling with rigorous regulations put in place under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted after the 2008 financial crisis. However, a number of Democrats are now blaming that rollback for the failure of Silicon Valley Bank and Signature Bank, putting the measure’s Democratic supporters on the defensive as the banking blame game heats up on Capitol Hill.
Congress is divided on whether any legislation is needed to prevent future bank failures, with some lawmakers skeptical that a closely divided Congress will act at all. The House Financial Services Committee has announced its first hearing for March 29, featuring at least two witnesses. Democrats in both chambers have rallied around two legislative proposals, while Republicans say the laws already in place were sufficient to prevent the bank failures. The recent bank failures create an opportunity to shape the political narrative for next year’s election.
The recent failure of Silicon Valley Bank has led to tech industry leaders, who have previously criticized big government, calling for federal intervention and rescue. The bank's collapse may have been prevented if it had been subject to stricter regulation under the Dodd-Frank Act, which was weakened by a deregulation law signed by President Trump in 2018. The current crisis highlights the importance of effective government regulation and intervention in preventing catastrophic bank failures.
Lawmakers are divided on how to respond to the recent bank failures of Silicon Valley Bank and Signature Bank. Some Democrats blame the rollback of banking regulations from the Dodd-Frank Act during the Trump administration, while others say it's not clear that those would have made a difference. The Federal Reserve's vice chair is conducting a review of its supervision and regulation of Silicon Valley Bank, to be released by May 1. Some panicked customers are moving their money from regional banks to larger lenders, which could reshape the banking landscape long-term.
Treasury Secretary Janet Yellen defended the Biden administration and federal regulators' actions to stabilize the US financial system, stating that the moves were aimed at preventing problems from spreading through the banking system. Yellen reassured the public that America's banks are "sound" and that their deposits are safe. The collapse of Silicon Valley Bank and Signature Bank led to finger-pointing over whether the 2018 rollback of some of the financial regulations in the Dodd-Frank Act was responsible for the bank failures. Yellen called for a re-examination of bank rules and supervision to "make sure they are appropriate to address the risks that banks face."