Cody Gaffney

Cody Gaffney

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FDIC Issues Final Brokered Deposits Rule

On December 15, 2020, the Board of Directors of the Federal Deposit Insurance Corporation (“FDIC”) voted 3–1 to approve a final rule that significantly revises and clarifies the regulatory framework applicable to brokered deposits, under which less-than-well-capitalized insured depository institutions are generally prohibited from accepting funds obtained, directly or indirectly, from a deposit broker.  The … Continue Reading

CFTC News Roundup for October and November and a Look Ahead

There has been a flurry of activity at the Commodity Futures Trading Commission (“CFTC”) in recent weeks.  As we reported previously, the CFTC approved three final rules, including the much-anticipated position limits rule, at its October 15 open meeting, and announced significant organizational changes to its operating divisions on November 3.  This post highlights additional … Continue Reading

Federal Reserve’s LISCC Program to Apply Only to U.S. G-SIBs

On November 6, 2020, the Board of Governors of the Federal Reserve System (the “FRB”) announced that, beginning in 2021, its Large Institution Supervision Coordinating Committee (“LISCC”) supervisory program will apply only to Category I firms as defined in the FRB’s tailoring framework.  This change will have the effect of removing three foreign banking organizations … Continue Reading

U.S. Supreme Court Holds that CFPB Director is Removable by the President

Earlier today, the U.S. Supreme Court released its long-awaited decision in the case of Seila Law LLC v. Consumer Financial Protection Bureau, a constitutional challenge to the structure of the CFPB.  The Court held that (i) the provision of the Dodd-Frank Act that protects the CFPB Director from removal by the President except for cause … Continue Reading

European Union Takes Step Toward Cohesive Global Regulatory Framework for Central Counterparties

On June 11, the European Commission (the “EC”) opened for feedback a trio of draft delegated acts that, if adopted, would constitute a major step toward cohesive global regulation of international securities and derivatives markets.  Specifically, the delegated acts (see here, here, and here) would allow certain central counterparties in non-EU Member States (“third-country CCPs”) … Continue Reading

Reminder from the OCC: National Banks Not Subject to Visitorial Powers of State Authorities

On Friday, April 24, 2020, the Office of the Comptroller of the Currency (the “OCC”) issued a short bulletin reminding federally chartered banks (i.e., national banks, federal savings associations, and federal branches and agencies of foreign banks) and other interested parties that the OCC has exclusive visitorial authority over federally chartered banks.  The bulletin states … Continue Reading

FDIC Proposes Rule to Codify Supervisory Framework for Industrial Loan Companies

On March 17, the Federal Deposit Insurance Corporation (the “FDIC”) issued a notice of proposed rulemaking (the “Proposal”) that would codify the FDIC’s existing supervisory processes and policies that apply to industrial banks and industrial loan companies (collectively, “ILCs”) and their parent companies. The FDIC announced on the following day that the FDIC Board of … Continue Reading

Proposal Would Simplify Volcker Rule’s “Covered Funds” Provisions

On January 30, 2020, five federal financial regulators jointly issued a proposed rule that would modify existing regulations implementing the Volcker Rule’s general prohibition on banking entities investing in, sponsoring, or having certain relationships with hedge funds or private equity funds (collectively, “covered funds”).  The proposal, which follows a 2019 final rule revising the Volcker … Continue Reading

Article: Preemption of State Interest Rate Limitations – Current Challenges Involving Bank Partnership Models

In an article published in the Review of Banking & Financial Services, Covington partner Ashley M. Simonsen argues that “true lender” theories asserted in litigation to invalidate bank–fintech partnerships are inconsistent with federal law, and would chill the market for interstate lending.  The article also suggests that both Congress and the federal banking regulators should … Continue Reading

Federal Reserve Finalizes Comprehensive Framework for Determining “Control”

On January 30, 2020, the Board of Governors of the Federal Reserve System unanimously approved a final rule that establishes a comprehensive framework for determining whether a company controls another company for purposes of the Bank Holding Company Act and Home Owners’ Loan Act, and clarifies certain control-related concepts. After decades in which questions of … Continue Reading

FDIC Revamps Brokered Deposit Rules

On December 12, 2019 the Federal Deposit Insurance Corporation (the “FDIC”) issued a notice of proposed rulemaking intended to modernize the regulatory framework applicable to brokered deposits.  Since the FDIC promulgated its original brokered deposit regulations in 1989, there have been significant technological changes and innovations across the banking industry that affect the way banks … Continue Reading
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