Posted on October 27, 2009 by Hunton & Williams LLP Print This Article

Treasury Dept. and House Financial Services Committee Release Draft Systemic Risk Bill

Today the Treasury Department and the House Financial Services Committee jointly released draft legislation addressing systemic risk. The new draft legislation comes two days before the House Financial Services Committee is scheduled to hold a hearing on systemic risk, Thursday, October 29, 2009. Today's revised legislation outlines a process for the government to determined which financial companies are more stringently regulated, what regulations will be used and how they will work. Additionally, it sets forth a process for winding down such companies.

Click here for a summary of the draft legislation and press release, and click here for the actual draft legislation.

Posted on October 22, 2009 by Hunton & Williams LLP Print This Article

TARP Executive Compensation Special Master Issues First Rulings

Special Master for TARP Executive Compensation Kenneth R. Feinberg announced his compensation package determinations for top executives at firms receiving significant TARP assistance. The announcement impacts the five most senior executive officers and the next twenty most highly compensated employees at each of the following: American International Group, Inc. (AIG); Citigroup Inc.; Bank of America Corporation; Chrysler Group, LLC; General Motors Company; General Motors Acceptance Corporation Financial Services (GMAC) and Chrysler Financial.

Click here for the press release detailing the determinations, and click here for the letters sent by the Treasury Department to each of the firms.

Posted on October 22, 2009 by Hunton & Williams LLP Print This Article

Consumer Financial Protection Agency Bill Passes the House Financial Services Committee

Today the House Financial Services Committee passed legislation to create the Consumer Financial Protection Agency.  Although the legislation has yet to pass the full House and Senate, the current bill would make the new agency responsible for rulemaking, examination and enforcement of financial institutions that provide consumers with financial products and services.  Furthermore, the Federal Reserve's rulemaking authority under current consumer banking laws would be transferred to the new agency.
 
Click here for the House Financial Service Committee's press release, and click here for the bill's summary.

Posted on October 21, 2009 by Hunton & Williams LLP Print This Article

House Agriculture Committee Approves Derivatives Regulation

The House Agriculture Committee approved today legislation to regulate over-the-counter ("OTC") derivatives.  Today's approval amends the bill passed out of the House Financial Services Committee on October 15, 2009.  According to today's press release, "the bill institutes a clearing and trading requirement for all OTC swap transactions between dealers and large market participants that are accepted by a clearinghouse.  Additionally, non-cleared swaps must be reported, with major participants and dealers adhering to strengthened capital and margin requirements. The bill exempts commercial end users who use derivatives markets to hedge their price risk from the clearing requirement."

Click here for the House Agriculture Committee's press release, and click here for the legislative text.

Posted on October 15, 2009 by Hunton & Williams LLP Print This Article

House Financial Services Committee Approves Derivatives Regulation

The House Financial Services Committee approved today legislation to regulate over-the-counter ("OTC") derivatives.  Included in OTC derivatives are swaps which, under the legislation, will now mostly be traded on exchanges and certain swap participants will be required to register with the applicable governing commission.  Additionally, the legislation lays out a parallel track regulatory framework with joint rulemaking authority residing in the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).  Should the SEC and CFTC be unable to issue joint rules within 180 days, the Treasury Department will have the ability to issue final rules. 

For more details click here for the House Financial Services Committee's press release, and click here for the mark-up and recorded vote tally. 

Posted on October 2, 2009 by Hunton & Williams LLP Print This Article

Over-The-Counter Derivatives Regulation Draft Bill Released

House Financial Services Committee Chairman Barney Frank released a discussion draft of legislation to regulate over-the-counter ("OTC") derivatives Friday on Capitol Hill.  The draft is being circulated in anticipation of the Committee's hearing scheduled for Wednesday, October 7, 2009 on OTC derivatives.  

Click here for the press release, and click here for the full text of the discussion draft of the bill.  
 

Posted on October 1, 2009 by Hunton & Williams LLP Print This Article

Newly Proposed Financial Regulatory Reform Legislation Would Broaden SEC Powers, Create Federal Insurance Office

Three proposed pieces of financial regulatory reform legislation released today would collectively increase the U.S. Securities and Exchange Commission's (SEC) power and budget, require private advisers to hedge funds to register with the SEC, and create a Federal Insurance Office to assist policy makers in analyzing the insurance industry, according to today's press release by the House Financial Services Committee's Capital Markets Subcommittee Chairman Paul Kanjorski.  The draft bills are for each of the following, the Investor Protection Act, the Private Fund Investment Advisers Registration Act, and the Federal Insurance Office Act.
 
Click here for today's press release outlining each of the proposed bills.  Click here for the Investor Protection Act draft bill, click here for the Private Fund Investment Advisers Registration Act draft bill, and click here for the Federal Insurance Office Act draft bill.