425 Search Results

June 14, 2021 |
The Discontinuation of IBORs and Its Impact on Islamic and UAE Transactions

1.   Introduction  When calculating interest rates for floating rate loans or other instruments, the interest rate has historically been made up of (i) a margin element, and (ii) an inter-bank offered rate (IBOR) such as the London Inter-Bank Offered Rate (LIBOR) as a proxy for the cost of funds for the lender. As a result of

June 7, 2021 |
Second Circuit Dismisses New York DFS Lawsuit Challenging Special Purpose National Bank Charters

On June 3, 2021, the United States Court of Appeals for the Second Circuit issued an important decision dismissing a lawsuit by the New York State Department of Financial Services (“DFS”), which was challenging the authority of the federal Office of the Comptroller of the Currency (“OCC”) to grant special purpose national ban

June 7, 2021 |
Licensing Regime for Virtual Asset Services Providers in Hong Kong

On 21 May 2021, the Hong Kong government published the Consultation Conclusions[1] on legislative proposals to enhance anti-money laundering and counter-terrorist financing (“AML/CTF”) regulations in Hong Kong, including a proposal to introduce a licensing regime for virtual asset services providers (“VASPs”). This client ale

May 21, 2021 |
Digital Currency Developments: Acting Comptroller Orders Review of Recent Decisions and FDIC Issues Information Request

This week, there were important virtual currency developments at two of the principal federal banking agencies, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC).  Both of these developments occurred as the markets for digital currencies showed substantial volatility.  First, i

April 27, 2021 |
Webcast: UK Financial Services Regulatory Quarterly Update

Join Gibson Dunn panelists Michelle Kirschner and Matthew Nunan for a discussion of: Recent FCA criminal prosecutions; Lessons for board governance from the Aviva plc Final Notice; Update on the Investment Firms Prudential Regime (IFPR) and remuneration; Crystal ball gazing View Slides (PDF) Michelle M Kirschner: A p

April 21, 2021 |
New York Department of Financial Services Finalizes Confidential Supervisory Information Regulation

On April 7, 2021, the new regulation of the New York Department of Financial Services (NYDFS) governing confidential supervisory information (CSI) became effective in final form.  NYDFS has thus joined the Board of Governors of the Federal Reserve System (Federal Reserve) in making recent amendments to its approach to CSI.[1]  The

April 16, 2021 |
The New Anti-Money Laundering Act: Issues for Financial Institutions

New York partner Matthew Biben is the author of "The New Anti-Money Laundering Act: Issues for Financial Institutions," [PDF] published by the New York Law Journal on April 16, 2021. New York associates Lee Crain and Lavi Ben Dor contributed to the article.

April 8, 2021 |
New York Adopts LIBOR Legislation

On April 6, 2021, New York Governor Andrew Cuomo signed into law Senate Bill 297B/Assembly Bill 164B (the “New York LIBOR Legislation”), the long anticipated New York State legislation addressing the cessation of U.S. Dollar (“USD”) LIBOR.[1]  The New York LIBOR Legislation generally tracks the legislation proposed by the

March 9, 2021 |
The End Is Near: LIBOR Cessation Dates Formally Announced

On March 5, 2021, regulators and industry groups provided market participants with much anticipated clarity by announcing the dates for the cessation of publication of, and non-representativeness of, various settings of the London Interbank Offered Rate (“LIBOR”)[1] which will allow market participants to identify the date that t

March 3, 2021 |
Risk, Risk and More Risk: Federal Reserve Finalizes Its Supervisory Guidance on Board of Directors’ Effectiveness

On February 26, 2021, the Board of Governors of the Federal Reserve System (Federal Reserve) issued a Supervision and Regulation letter[1] containing its final supervisory guidance (Effectiveness Guidance) on the effectiveness of a banking institution’s board of directors.  The Guidance applies to bank holding companies and saving

February 24, 2021 |
Cryptocurrency Developments: Office of Foreign Assets Control’s Recent Enforcement Cases Against Digital Asset Firms

On February 18, 2021, the U.S. Office of Foreign Assets Control (OFAC), an agency of the Treasury Department that administers and enforces U.S. economic and trade sanctions, issued an enforcement release of a settlement agreement with BitPay, Inc. (BitPay) for apparent violations relating to Bitpay’s payment processing solution tha

February 17, 2021 |
Reverse solicitation: a shot across the bow

London partners Michelle Kirschner and Matthew Nunan are the authors of "Reverse solicitation: a shot across the bow," [PDF] first published by Thomson Reuters Regulatory Intelligence on February 10, 2021.

February 16, 2021 |
The Biden Administration: New Priorities in the Banking, Fintech and Derivatives Sectors

Now that the first 100 days of the Biden Administration are in full swing, its financial regulatory priorities are becoming clearer. In this Client Alert, we discuss where we expect the Administration to focus, with respect to the banking, fintech, and derivatives sectors. We believe these to be the principal takeaways: The A

February 2, 2021 |
New York State Department of Financial Services Round-Up – February 2021

The New York State Department of Financial Services (“DFS”) is the state’s primary regulator of financial institutions and activity, with jurisdiction over approximately 1,500 financial institutions and 1,800 insurance companies. Heading into 2021, DFS stands ready to expand its regulatory footprint, with increased efforts in

January 27, 2021 |
Webcast: UK Financial services regulatory update: what happened in 2020 and what to expect in 2021 and beyond

Join Michelle Kirschner, Matthew Nunan, Steve Melrose and Martin Coombes in a review of financial services regulatory developments in 2020 and what these developments indicate about the future regulatory direction of travel. The webinar will provide an overview of the regulatory landscape, now and in the coming years, through the prism of three

January 25, 2021 |
Virtual Currency/Fintech Update: OCC Approves Anchorage Trust’s Charter Conversion and Expands the General Fiduciary Powers of National Banks

On January 13, 2021, the Office of the Comptroller of the Currency (“OCC”) conditionally approved the charter conversion application for Anchorage Trust Company (“Anchorage”), permitting Anchorage to become a national trust bank.[1] This is the first approval by the OCC of a virtual currency firm’s becoming a federally regu

January 21, 2021 |
Urgent Clarification Sought by European Supervisory Authorities on the Application of the Sustainable Finance Disclosure Regulation

On 7 January 2021, the Joint Committee of the European Supervisory Authorities (“ESAs”) wrote to the European Commission, requesting “urgent” clarification on several important areas of uncertainty in the application of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (the “SF

January 14, 2021 |
UK Financial Services Regulation – 2020 Year-End Review

In an unprecedented year for UK regulated firms and the Financial Conduct Authority (“FCA”), the regulatory agenda has at times seemed dominated by the global pandemic. However, regulated firms should be mindful of the regulatory direction of travel. This client alert assesses the regulatory landscape, now and in the coming years

January 8, 2021 |
Financial Policy in the Incoming Biden Administration: What Can We Expect?

Washington, D.C. counsel Roscoe Jones Jr., New York partner Joel Cohen, Washington, D.C. partner Michael Bopp, New York partner Arthur Long, Washington, D.C. partner Jeffrey Steiner, Washington, D.C. associate Samantha Ostrom, Orange County associate Maggie Zhang and San Francisco associate Alexandra Farmer are the authors of "Financial Policy in t

January 1, 2021 |
The Top 10 Takeaways for Financial Institutions from the Anti-Money Laundering Act of 2020

After a complicated path to passage, today the Senate completed the override of President Trump’s veto of the National Defense Authorization Act and, as part of that legislation, passed the Anti-Money Laundering Act of 2020 (“AMLA” or the “Act”).[1] The AMLA is the most comprehensive set of reforms to the anti-money launder

December 10, 2020 |
Webcast: International Anti-Money Laundering and Sanctions Enforcement

Gibson Dunn provides a discussion regarding the latest developments and trends in anti-money laundering and sanctions laws, regulations, and enforcement. This webcast includes a particular focus on international AML developments, including the increasing overlap between sanctions and AML enforcement. We also discuss updates related to the FinCEN fi

December 2, 2020 |
UK Market Conduct – Avoiding Governance and Oversight Pitfalls

The Financial Conduct Authority (“FCA”) continues to show a desire to take action in sectors of the financial services industry where there has been traditionally less supervisory oversight and to push the importance of firm’s internal governance and oversight structures. Enforcement cases are often used as a way to convey key

December 1, 2020 |
Proposal to Publish LIBOR Beyond 2021

Announcements On November 30, 2020, ICE Benchmark Administration (“IBA”), the administrator of LIBOR, with the support of the Federal Reserve Board and the UK Financial Conduct Authority, announced plans to consult on specific timing for the path forward to cease the publication of USD LIBOR. In particular, IBA plans to consult

November 30, 2020 |
Throwing Down the Gauntlet on Politics and Banking: Office of the Comptroller of the Currency Proposes “Fair Access” Rule

On November 20, 2020, the Office of the Comptroller of the Currency (“OCC”) proposed a rule to require large national banks and federal savings associations to offer and provide “fair access” to financial services (Fair Access Proposal).[1] The Fair Access Proposal can be seen as a potential preemptive strike against regulato

November 13, 2020 |
The Challenge of Addressing Non-Financial Misconduct in UK Regulated Firms

Many UK regulated firms will be currently (re-)assessing staff as fit and proper and training staff on the FCA’s (or the PRA’s) Conduct Rules. The FCA has recently banned three individuals from working in the financial services industry for non-financial misconduct outside the workplace. The enforcement actions are, therefore, a

November 10, 2020 |
FCA Fines Non-UK Asset Manager in the First UK Enforcement Action Taken under the Short Selling Regulation

The UK Financial Conduct Authority (the “FCA”) has published a final notice (the “Final Notice”) detailing enforcement action taken against a Hong Kong asset manager for short selling disclosure rule breaches under the Short Selling Regulation (the “SSR”). The Final Notice provides a reminder to non-UK based asset manager

November 2, 2020 |
Matthew Nunan, Former EMEA Head of Conduct Risk at Morgan Stanley, Joins Gibson Dunn in London

Gibson, Dunn & Crutcher LLP is pleased to announce that Matthew Nunan has joined the firm’s London office as a partner.  Nunan, formerly a Managing Director and EMEA Head of Conduct Risk at Morgan Stanley, will focus on complex contentious financial regulatory investigations and disputes. “Matt is highly regarded within London’s finan

October 28, 2020 |
The U.S. Dual Banking System on the Eve of the Election: Fintechs, Preemption, Judicial Deference, and National Trust Banks

Since the last presidential election, there have been several regulatory developments that go to the heart of the U.S. dual banking system – the quintessentially American system under which banking entities may choose either a state or federal charter. These developments have occurred at the Office of the Comptroller of the Currenc

October 23, 2020 |
After a Decade, What is Settled About Dodd-Frank?

New York partner Arthur Long is the author of "After a Decade, What is Settled About Dodd-Frank?" [PDF] published by the American Bar Association's Banking Law Committee Journal in September 2020.

October 13, 2020 |
California Enacts New Consumer Financial Protection Law, Increasing Authority of Its Financial Regulator

On September 25, 2020, California Governor Gavin Newsom signed into law the California Consumer Financial Protection Law (CCFPL), which was passed by the state legislature on August 31, 2020.[1] Under the CCFPL, California’s Department of Business Oversight (DBO) has been renamed the Department of Financial Protection and Innovati

September 29, 2020 |
Cryptocurrency Developments: Comptroller of the Currency Affirms That National Banks May Hold Stablecoin Reserves

On September 21, 2020, the Office of the Comptroller of the Currency, the U.S. regulator of national banks, issued an interpretive letter that concluded that national banks may hold deposits that serve as reserves for certain stablecoin issuers (Stablecoin Letter).[1] The Stablecoin Letter’s guidance is another example of the activ

September 22, 2020 |
Developments in the U.S. Banking Regulators’ Treatment of Confidential Supervisory Information

One of the thornier areas of law for U.S.-regulated banks and their holding companies is that regarding confidential supervisory information (CSI). U.S. regulators treat bank examination reports and related correspondence and materials, which are often the most useful sources of information about a financial institution, as the regul

August 4, 2020 |
2020 Mid-Year Sanctions and Export Controls Update

The ongoing coronavirus has caused governments and populations to rethink how to conduct social interactions and in turn how to conduct business on a global scale. Despite the ongoing global public health crisis, the United States Government’s efforts to use its economic leverage to conduct foreign policy continues unabated. Indeed

July 23, 2020 |
Senior Managers and Certification Regime: A Review and Next Steps for Firms

The Senior Managers and Certification Regime (“SMCR”) has applied to Financial Conduct Authority (“FCA”)-solo regulated firms since 9 December 2019. Individuals from across firms will no doubt remember the level of engagement required to prepare firms for the SMCR. Over six months on from implementation, firms are testing th

July 9, 2020 |
Webcast: Recent Developments at the New York State Department of Financial Services

The New York State Department of Financial Services is the state’s primary regulator of financial institutions and activity, with jurisdiction over approximately 1,500 financial institutions and 1,400 insurance companies. This year, the agency has been poised to make its mark, with new leadership focused heavily on consumer protection in the abse

July 7, 2020 |
Dodd-Frank 2.0: Agencies Finalize Substantial Revisions to the Covered Funds Provisions of the Volcker Rule

On June 25, 2020, the five regulatory agencies (Agencies) responsible for implementing the Dodd-Frank Act’s Volcker Rule finalized their rulemaking (2020 Rule), substantially revising the “covered funds” provisions of the regulation. Of particular significance, the 2020 Rule: Excludes “credit funds” and “venture

June 25, 2020 |
Protecting Client Privilege During UK Regulatory Investigations: A Cautionary Tale from the UK’s Audit Regulator

On June 10, 2020, Mr Justice Trower, sitting in the English High Court, handed down his judgment in A v B [2020] EWHC 1491 (Ch). The judgment addressed the treatment of privileged documents that had been disclosed to an auditor by their clients under a limited waiver, with a finding that it was for the auditors (and not their clien

June 12, 2020 |
European Market Infrastructure Regulation for Derivatives End-Users – A Shift in Responsibility for Reporting

EMIR Refit[1] came into force on 17 June 2019 with the aim of amending the European Market Infrastructure Regulation (“EMIR”)[2] to address “disproportionate compliance costs, transparency issues and insufficient access to clearing for certain counterparties”[3]. While most of the changes are already in force, further chang

May 28, 2020 |
UK Financial Conduct Authority Outlines Expectations for Managing Enhanced Market Conduct Risks in the Context of the Pandemic

  On 27 May 2020, the UK Financial Conduct Authority (the “FCA”) published Market Watch 63 (“MW63”). MW63 highlights that market participants (including issuers, their advisers and all other market participants) may be subject to new and emerging market conduct risks as a result of the current increase in primary market act

May 18, 2020 |
FinCEN Again Extends Its Geographic Targeting Order to Address Money Laundering Through Real Estate

On May 8, 2020, the Department of the Treasury Financial Crimes Enforcement Network (“FinCEN”) again extended the Geographic Targeting Order (“GTO”) requiring title insurance companies to report non-financed purchases of residential real estate in certain major metropolitan areas.[1] Recent Congressional activity evinces an

May 11, 2020 |
European Commission Launches Major AML Initiative

Overview On May 7, 2020, the European Commission (the “Commission”) announced an action plan of measures designed to pursue what will likely constitute a fundamental reshaping of how rules relating to anti-money laundering (“AML”) and counter-terrorist financing (“CTF”) are implemented, overseen and enforced in the

May 11, 2020 |
COVID-19: UK Financial Conduct Authority Expectations on Financial Crime and Information Security

The UK Financial Conduct Authority (“FCA”) has issued statements to financial services firms outlining its expectations on: (i) financial crime systems and controls; and (ii) information security, during the COVID-19 pandemic. These are further examples of the FCA requiring firms to take steps to prevent and/or limit harm to co

April 27, 2020 |
The Federal Financial Institutions Examination Council Issues Revisions to the BSA/AML Examination Manual

The Federal Financial Institutions Examination Council (“FFIEC”)[1] recently announced the publication of substantial revisions to the first section of its Bank Secrecy Act/Anti-Money Laundering Examination Manual (the “Manual”) regarding the BSA/AML examination process and the examination of a bank’s overall BSA/AML prog

April 23, 2020 |
COVID-19: Further Developments on the UK Financial Conduct Authority’s Expectations of Solo-Regulated Firms

In light of the significant impact of COVID-19, the UK Financial Conduct Authority (“FCA”), like many other regulatory authorities globally, has introduced a number of temporary measures impacting financial services firms.  As can be seen even over the course of the last week, the FCA has made further announcements which:

April 22, 2020 |
COVID-19: Update on UK Financial Support Measures

In our client alert of 27 March 2020, we provided an overview of the financial support made available by the UK Government to: (i) investment grade businesses through the Covid Corporate Finance Facility (the “CCFF”); and (ii) small and medium sized enterprises (“SMEs”) through the Coronavirus Business Interruption Loan S

April 21, 2020 |
The Impact of Coronavirus on the Operations of Financial Institutions: Key Guidance Issued by U.S. Financial Regulators

Since the early stages of the coronavirus (COVID-19) pandemic, U.S. financial regulators have issued a flurry of guidance.  This Alert analyzes select guidance from regulators to date on three key issues:  (1) the additional planning that financial institutions should undertake going forward, (2) how financial institutions shou

April 14, 2020 |
COVID-19: Regulatory Forbearance for Fund Annual Reports under EU AIFMD

The European Securities and Markets Authority (“ESMA”) has published a public statement[1] detailing actions to mitigate fund managers’ reporting obligations.  This client alert provides EU alternative fund managers (“AIFMs”), and non-EU AIFMs marketing their funds in the EU, with an overview of the impact of the public

April 9, 2020 |
Emergency Lending: Federal Reserve Expands Primary Market Corporate Credit Facility, Secondary Market Corporate Credit Facility and Term Asset-Backed Lending Facility

Today, the Board of Governors of the Federal Reserve System (Federal Reserve) announced that it was expanding three of the facilities created earlier this spring in reaction to the economic dislocation caused by COVID-19:  the Primary Market Corporate Credit Facility (PMCCF), the Secondary Market Corporate Credit Facility (SMCCF)

April 9, 2020 |
Treasury and Fed Release High-Level Terms of Main Street and Paycheck Protection Lending Facilities

Today, the Board of Governors of the Federal Reserve System (“Federal Reserve”) announced that, as part of the “programs or facilities” the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) directs the Federal Reserve to establish to provide “liquidity to the financial system that supports lending to el

April 6, 2020 |
UK Government Schemes to Support Businesses during COVID-19 Disruption

The UK Government has announced a series of measures to support public services, people and businesses through this period of severe - but temporary - disruption caused by COVID-19.  The Government’s measures are a mixture of tax relief, financing and support towards the cost of employees. Further clarity on the Government’s p

April 6, 2020 |
COVID-19: The UK Financial Conduct Authority’s expectations under the Senior Managers and Certification Regime

On 3 April 2020, the UK Financial Conduct Authority (“FCA”) published a statement setting out its expectations of FCA solo-regulated firms under the Senior Managers and Certification Regime (“SMCR”) during the COVID-19 outbreak. This client alert provides FCA solo-regulated firms with an overview of the FCA’s SMCR-related

April 1, 2020 |
COVID 19: ESMA Suggests Regulatory Forbearance in Relation to Best Execution Reporting Deadlines

On 31 March 2020, the European Securities and Markets Authority (“ESMA”) issued a public statement[1] to clarify issues regarding the publication by execution venues and firms of best execution reports required by RTS 27 and RTS 28 of MiFID II.  This client alert provides an overview of ESMA’s public statement and its con

April 1, 2020 |
COVID-19: UK Financial Conduct Authority’s Short Selling Notification Thresholds Amended

The UK Financial Conduct Authority (“FCA”) has made clarifications to its previous announcement on 16 March regarding the European Securities and Markets Authority’s (“ESMA’s”) decision concerning temporary amendments to short selling notification thresholds under the Short Selling Regulation (“SSR”).  The FCA wil

March 31, 2020 |
Federal Reserve Announces Delay in Effectiveness of New “Control” Framework

Responding to the effects of COVID-19 on the U.S. economy and the desire of banks and investors to consult with Federal Reserve staff about the effects of the Federal Reserve’s new “control” rule on existing investments and relationships, the Federal Reserve announced that it was delaying the effective date of its new framewo

March 27, 2020 |
COVID-19: UK Financial Support for Businesses through Purchases of Commercial Paper and Lending to SMEs

The UK Government has launched two funding mechanisms to assist firms with the potential impact of COVID-19 on their businesses: a joint lending facility between the UK HM Treasury and the Bank of England (“BoE”) designed to support liquidity among larger firms through the purchase of commercial paper, the Covid Corporate

March 27, 2020 |
“… whatever it takes” – German Parliament Passes Far-Reaching Legal Measures in Response to the COVID-19 Pandemic

On March 25, 2020, the German Parliament (Bundestag) passed a far reaching rescue package to respond to the COVID-19 pandemic and its dramatic economic effects. The full text of the package can be found here.[1] The package is a combination of significant changes on different levels: (i) Temporary changes in the German civil cod

March 25, 2020 |
New York Department of Financial Services Emergency Regulations — Mandatory Forbearances for Residential Mortgage Loans

On March 21, 2020, New York Governor Andrew Cuomo issued an Executive Order relating to 90-day forbearances for borrowers that are suffering financial hardship as a result of the COVID-19 pandemic. In part, this Executive Order called on the New York Department of Financial Services (DFS) to promulgate emergency regulations in furt

March 24, 2020 |
Emergency Lending Round 2: Primary Market Corporate Credit Facility, Secondary Market Corporate Credit Facility, Term Asset-Backed Lending Facility and Expansion of Other Programs

Yesterday, in an unprecedented action, the Board of Governors of the Federal Reserve System (Federal Reserve) invoked its emergency lending authority under Section 13(3) of the Federal Reserve Act to create additional programs to stabilize important financial markets.  It announced three facilities: the Primary Market Corporate C

February 24, 2020 |
New York State Department of Financial Services Round-Up – February 2020

The New York State Department of Financial Services (“DFS”) is the state’s primary financial regulating agency, with jurisdiction over approximately 1,500 financial institutions and 1,400 insurance companies. Moving into 2020, the agency is poised make its mark with a new administration that is focused on consumer protection in the absence o

February 13, 2020 |
The Federal Reserve’s New “Control” Framework: Somewhat Greater Opportunities for Minority Investments

On January 30, 2020, the Board of Governors of the Federal Reserve System issued a final rule that would update and revise, to some degree, its framework for finding “control” under the Bank Holding Company Act of 1956, as amended (BHC Act). The new control rule (Control Rule) expands the relationships that an investor can h

February 6, 2020 |
Dodd-Frank 2.0: Agencies Propose Substantial Revisions to the Covered Funds Provisions of the Volcker Rule

On January 30, 2020, the five regulatory agencies (Agencies) responsible for implementing the Dodd-Frank Act’s Volcker Rule issued, in some cases with dissent, a proposed rule (Funds Proposal) that would make substantial revisions to the “covered funds” provisions of their Volcker regulations. The proposal would loosen a numb

January 9, 2020 |
Developments in the Defense of Financial Institutions – The International Reach of the U.S. Money Laundering Statutes

Our clients frequently inquire about precisely when U.S. money laundering laws provide jurisdiction to reach conduct that occurred outside of the United States.  In the past decade, U.S. courts have reiterated that there is a presumption against statutes applying extraterritorially,[1] and explicitly narrowed the extraterritorial

December 10, 2019 |
Brexit – Reporting of Derivatives under EMIR

In the event of the United Kingdom leaving the European Union without an agreed deal on 31 January 2020, UK counterparties will need to make changes to their derivatives reporting arrangements in advance of that date to ensure that they comply with the UK’s European Market Infrastructure Regulation (“EMIR”) reporting require

November 22, 2019 |
New York State Department of Financial Services Proposes New Regulation Easing Information Sharing Between Regulated Entities and Professional Advisors

Last week, the New York State Department of Financial Services (“DFS”) proposed a new regulation allowing regulated entities to share “confidential supervisory information” with their legal counsel and independent auditors without first obtaining approval from DFS.[1] Announced by superintendent Linda Lacewell, DFS stated

November 21, 2019 |
U.S. Banking Agencies Finalize Regulation on “High Volatility Commercial Real Estate” Capital Treatment

On November 19, 2019, the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, and Federal Deposit Insurance Corporation (Agencies) finalized their regulation (Final Rule) on High Volatility Commercial Real Estate (HVCRE) that had been proposed in September 2018. The Final Rule made few ch

November 20, 2019 |
Comptroller of the Currency and Federal Deposit Insurance Corporation Propose Rules on Maximum Interest Rate Authority

On November 18, 2019, the U.S. Office of the Comptroller of the Currency (OCC) issued a proposed regulation (OCC Proposal) that would codify, for national banks and federal thrifts, the common law “valid when made” doctrine of usury law. Yesterday, the Federal Deposit Insurance Corporation (FDIC) issued a similar proposal (FDIC

November 19, 2019 |
Revised Section 13(3) of the Federal Reserve Act

New York partner Arthur Long is the author of “Revised Section 13(3) of the Federal Reserve Act,” [PDF] published in Business Law Today on March 22, 2019.

November 11, 2019 |
Steps Toward Reforming U.S. Housing Finance

This fall, the U.S. financial agencies have taken initial, but substantial, steps towards reforming the U.S. housing finance system. In September, the U.S. Department of the Treasury (Treasury) published a detailed proposal (Housing Reform Plan), which included a call to tackle the last unfinished piece of regulatory business stemm

October 4, 2019 |
Best Practices for AML Compliance Self-Assessments

The Bank Secrecy Act requires financial institutions to establish an anti-money laundering (AML) compliance program to prevent and detect financial crime. Failure to institute an effective program can subject an institution to significant regulatory oversight and penalties. AML compliance missteps have caught numerous banks in the United States and

September 24, 2019 |
UK Supreme Court Decides Suspending UK Parliament Was Unlawful

The UK’s highest court has today ruled (here) that Prime Minister Boris Johnson’s decision to suspend (or “prorogue”) Parliament for five weeks, from September 9, 2019 until October 14, 2019, was unlawful. The Supreme Court, sitting with eleven justices instead of the usual five, unanimously found “that the decision to

September 9, 2019 |
Dodd-Frank 2.0: U.S. Agencies Revise the Volcker Rule on Proprietary Trading

Since it was enacted in July 2010, the Dodd-Frank Act’s Volcker Rule has challenged banks and their regulators alike.  This is particularly the case with respect to its restrictions on proprietary trading.  It has been one thing for former Federal Reserve Chairman Volcker to state that “you know it when you see it,” quite a

August 19, 2019 |
Gibson Dunn Adds Leading Bank Regulatory and Enforcement Litigator Matthew Biben

Gibson, Dunn & Crutcher LLP is pleased to announce that Matthew L. Biben has joined the firm as a partner in the New York office.  Biben, formerly a co-lead of Debevoise & Plimpton LLP’s Banking Industry Group, will serve as Co-Chair of Gibson Dunn’s Financial Institutions Practice Group and continue his financial institutions practice

August 15, 2019 |
Gibson Dunn Lawyers Recognized in the Best Lawyers in America® 2020

The Best Lawyers in America® 2020 has recognized 158 Gibson Dunn attorneys in 54 practice areas. Additionally, 48 lawyers were recognized in Best Lawyers International in Belgium, Brazil, France, Germany, Singapore, United Arab Emirates and United Kingdom.

July 26, 2019 |
New UK Prime Minister – what has happened?

Boris Johnson has won the Conservative leadership race and is the new Prime Minister of the UK. Having been supported by a majority of Conservative MPs, this week the former mayor of London won a 66% share (92,153 votes) in the ballot of Conservative party members. Although there is some criticism of the fact that the new Prime M

June 5, 2019 |
EMIR Refit Enters into Force on June 17, 2019 – Impacts and Action Items for End-Users

On May 28, 2019, final text was published in the Official Journal of the European Union (“OJEU”) for substantive amendments to the European Market Infrastructure Regulation (“EMIR”)[1] relating to the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques f

May 16, 2019 |
Impact of CFTC’s Proposed Amendments to Swap Data Reporting Requirements on Reporting and Non-Reporting Counterparties

On May 13, 2019, the Commodity Futures Trading Commission (the “Commission” or the “CFTC”) published a notice of proposed rulemaking titled Proposed Amendments to the Commission’s Regulations Relating to Certain Swap Data Repository and Data Reporting Requirements (the “Proposal”).[1]  The Proposal seeks to modify ex

March 22, 2019 |
LSTA, LMA and APLMA Publish Sustainability Linked Loan Principles

Sustainability linked loans, a fast-growing loan product introduced in the United States last year, got a significant boost this week with the promulgation of the Sustainability Linked Loan Principles by the leading syndicated lending industry associations.  The SLLPs establish a voluntary framework for designing and negotiating s

January 18, 2019 |
Developments in the Defense of Financial Institutions – Calculating the Financial Exposure

Our financial institution clients frequently inquire about how best to address their regulatory and financial exposure in inquiries by the U.S. Department of Justice ("DOJ") and regulators in the United States.[1]  With corporate entities[2] being held criminally liable under the U.S. legal doctrine of respondeat superior for the

November 21, 2018 |
Gibson Dunn Ranked in the 2019 UK Legal 500

The UK Legal 500 2019 ranked Gibson Dunn in 13 practice areas and named six partners as Leading Lawyers. The firm was recognized in the following categories: Corporate and Commercial: Equity Capital Markets Corporate and Commercial: M&A – Upper Mid-Market and Premium Deals, £250m+ Corporate and Commercial: Private Equity – High

November 19, 2018 |
Brexit – The Draft Divorce Deal and Its Fall-Out

1. Negotiators for the European Union and the United Kingdom have agreed a 585-page draft withdrawal agreement (the “Withdrawal Agreement”).  A copy of the Withdrawal Agreement can be found here. 2. The draft Withdrawal Agreement sets out how and when the UK will leave the EU and will be legally binding.  A separate, non-b

November 15, 2018 |
SEC Announces First Enforcement Action Against Digital Token Platform as Unregistered Securities Exchange

On November 8, 2018, the U.S. Securities and Exchange Commission (SEC) announced that it had taken its first enforcement action against a digital "token" trading platform on the basis that the platform operated as an unregistered national securities exchange.  This action follows on a number of recent enforcement actions relating

October 30, 2018 |
Webcast: Spinning Out and Splitting Off – Navigating Complex Challenges in Corporate Separations

In the current strong market environment, spin-off deals have become a regular feature of the M&A landscape as strategic companies look for ways to maximize the value of various assets. Although the announcements have become routine, planning for and completing these transactions is a significant and multi-disciplinary undertaking. By its natur

October 22, 2018 |
IRS Provides Much Needed Guidance on Opportunity Zones through Issuance of Proposed Regulations

On October 19, 2018, the Internal Revenue Service (the "IRS") and the Treasury Department issued proposed regulations (the "Proposed Regulations") providing rules regarding the establishment and operation of "qualified opportunity funds" and their investment in "opportunity zones."[1]  The Proposed Regulations address many open qu

October 17, 2018 |
SEC Warns Public Companies on Cyber-Fraud Controls

On October 16, 2018, the Securities and Exchange Commission issued a report warning public companies about the importance of internal controls to prevent cyber fraud.  The report described the SEC Division of Enforcement's investigation of multiple public companies which had collectively lost nearly $100 million in a range of cybe

October 11, 2018 |
Financing Arrangements and Documentation: Considerations Ahead of Brexit

Since the result of the Brexit referendum was announced in June 2016, there has been significant commentary regarding the potential effects of the UK's withdrawal from the EU on the financial services industry. As long as the UK is negotiating its exit terms, a number of conceptual questions facing the sector still remain, such

October 10, 2018 |
Why We Think the UK Is Heading for a “Soft Brexit”

Our discussions with politicians, civil servants, journalists and other commentators lead us to believe that the most likely outcome of the Brexit negotiations is that a deal will be agreed at the “softer” end of the spectrum, that the Conservative Government will survive and that Theresa May will remain as Prime Minister at

October 5, 2018 |
OFAC Issues Economic Sanctions Guidance on Digital Currencies

Over the last several months, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has expressed a clear interest in protecting the U.S. financial system from illicit activities in the digital currency space and has posited that transactions involving digital currencies be treated similarly to transactions invol

September 27, 2018 |
New York Office of the Attorney General Publishes Report on Virtual Currency Platforms and Their Potential Risks

This Alert reviews the New York State Office of the Attorney General's (the "OAG") Virtual Markets Integrity Initiative Report (the "Report"), which was published on September 18, 2018.[1]  The publication of the OAG's 42-page Report brings to a close its six-month fact-finding inquiry of several virtual currency platforms.[2] 

September 24, 2018 |
Dodd Frank 2.0: U.S. Federal Banking Agencies Propose New HVCRE Capital Regulations

On September 18, 2018, the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, and Federal Deposit Insurance Corporation (together, the Banking Agencies) proposed revisions to their Basel III capital rules regarding so-called High Volatility Commercial Real Estate (HVCRE) loans.  The purpos

September 10, 2018 |
Jeffrey Steiner Named a Cryptocurrency, Blockchain and Fintech Trailblazer

The National Law Journal named Washington, D.C. counsel Jeffrey Steiner a 2018 Cryptocurrency, Blockchain and Fintech Trailblazer [PDF]. Steiner is recognized for leading one of the Dodd-Frank rulemaking teams for OTC derivatives while at the U.S. Commodity Futures Trading Commission and helping create Gibson Dunn’s digital currencies and blockch

August 20, 2018 |
Dodd-Frank 2.0: Potential Reform to the Federal Reserve Board’s “Control Rules” — What Is at Stake and Who May Benefit

2018 has seen significant but pragmatic developments in the implementation of bank regulation by the Board of Governors of the Federal Reserve System (Federal Reserve) under its new Vice Chairman for Bank Supervision, Randal Quarles.  Vice Chairman Quarles has frequently touted transparency in regulation as a significant virtue, a

August 6, 2018 |
The U.S. Office of the Comptroller of the Currency Will Permit Special Purpose National Bank Charters for Fintech Firms

Last week, the Office of the Comptroller of the Currency (OCC) announced that it would begin accepting proposals from Fintech firms to charter special purpose national banks (SPNBs).  This decision comes over 18 months after the White Paper proposing such charters was issued under President Obama's Comptroller, Thomas Curry, in hi

July 30, 2018 |
2018 Mid-Year Securities Enforcement Update

I.  Significant Developments A.  Introduction For a brief moment in time, after several years with as many as 3 of the 5 commissioner seats vacant, the SEC was operating at full force, with the January 2018 swearing in of newest commissioners Hester Peirce and Robert Jackson.  This situation was short-lived, as Commissioner Pi

July 12, 2018 |
Developments in the Defense of Financial Institutions

To Disclose or Not to Disclose: Analyzing the Consequences of Voluntary Self-Disclosure for Financial Institutions One of the most frequently discussed white collar issues of late has been the benefits of voluntarily self-disclosing to the U.S. Department of Justice ("DOJ") allegations of misconduct involving a corporation.  This

July 12, 2018 |
The Politics of Brexit for those Outside the UK

Following the widely reported Cabinet meeting at Chequers, the Prime Minister's country residence, on Friday 6 June 2018, the UK Government has now published its "White Paper" setting out its negotiating position with the EU.  A copy of the White Paper can be found here. The long-delayed White Paper centres around a free trade

July 9, 2018 |
2018 Mid-Year FCPA Update

The steady clip of Foreign Corrupt Practices Act ("FCPA") prosecutions set in 2017 has continued apace into the first half of 2018, largely quieting any questions of enforcement of this important statute under the current Administration.  Although this update captures developments through June 30, the enforcers did not have a rep

June 27, 2018 |
Webcast: Developments in Virtual Currency Law and Regulation

The past year has seen an explosion in virtual currency offerings, as well as significant legal and regulatory developments as U.S. regulators have tried to keep pace with the industry. It is therefore timely for an analysis of these developments under a multi-disciplinary approach. Our team of experienced virtual currency practitioners analyze rel

June 14, 2018 |
Revisions to the FFIEC BSA/AML Manual to Include the New CDD Regulation

On May 11, 2018, the federal bank regulators and the Financial Crimes Enforcement Network ("FinCEN") published two new chapters of the Federal Financial Institution Examination Council Bank Secrecy Act/Anti-Money Laundering Examination Manual ("BSA/AML Manual") to reflect changes made by FinCEN to the CDD regulation.[1]  One of th

May 24, 2018 |
Dodd Frank 2.0: Reforming U.S. HVCRE Capital Treatment

On Tuesday, May 22, 2018, the U.S. House of Representatives passed the Economic Growth, Regulatory Relief, and Consumer Protection Act (Reform Bill), which had already passed the Senate on a bipartisan basis.  President Trump signed the Reform Bill into law today.  Among the Reform Bill's more important provisions is a section re

May 15, 2018 |
CFTC Chairman and Chief Economist Co-Author “Swaps Reg Reform 2.0”

On April 26, 2018, Commodity Futures Trading Commission ("CFTC") Chairman J. Christopher Giancarlo and the CFTC's Chief Economist Bruce Tuckman released a co-authored white paper titled Swaps Regulation Version 2.0: An Assessment of the Current Implementation of Reform and Proposals for Next Steps ("White Paper"),[1] which analyzes