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Banking/Financial Services

Aug 30, 2019

SEC Stresses Attention to LIBOR Transition in Joint Statement

On July 12, 2019, the Securities and Exchange Commission (“SEC”) Staff published a major and unusual joint statement on “LIBOR Transition.”

The Divisions of Corporation Finance, Investment Management, and Trading and Markets, together with the Office of the Chief Accountant, issued a seven-page, single-space statement.» Read More

Jul 23, 2019

Oh How Will We Measure When the Ruler is Uncertain: More Observations on the LIBOR Saga

At the end of May, I wrote a piece titled “‘Measure for Measure’ LIBOR, SOFR, and the U.S. DOLLAR.  ICE BANK YIELD INDEX”.  As noted there, the U.S. Board of Governors of the Federal Reserve System (“FRB”) in 2014 created the Alternative Rates Reference Committee (“ARRC”) to develop alternatives to LIBOR. » Read More

Jun 03, 2019

“Measure for Measure:” LIBOR, SOFR, and the U.S. Dollar ICE Bank Yield Index


Until the 1980s, banks and especially banks located outside the United States (and even more, those in Europe) had to deal with ever-growing U.S. dollar deposits, known as Eurodollars. These Eurodollars arose from both the Marshall Plan expenditures after World War II and the climbing amount of imports into the U.S.» Read More

May 14, 2019

“Control” – Objective and Subjective: The Jurisdiction of the Federal Reserve and Fintech Investments

Although the American banking system is hardly a model of straightforward simplicity at best (at least five primary federal regulators, depending upon the type of bank or whether a savings institution is involved, and not forgetting credit unions, let alone the 50 state bank chartering and regulating authorities), one area of almost impenetrable opaqueness has been the issue of when one company “controls” another company under the Bank Holding Company Act or the Home Owners’ Loan Act (sometimes called the Savings and Loan Holding Company Act).» Read More

Apr 09, 2019

FASB Refuses to Let Regional Banks Avoid Taking Earlier Loss Reserves

On June 16, 2016, the Financial Accounting Standards Board (“FASB,” the private, non-profit body which sets and revises Generally Accepted Accounting Principles), adopted a new accounting standard applicable to lenders, primarily banks. The new standard, “Current Expected Credit Losses” (CECL), is to take effect at the beginning of 2020.» Read More

Aug 14, 2018

Single Member LLCs – Best Practices for Maintaining Liability Protection

In Pennsylvania, forming a corporate entity for your business (particularly an LLC) is a good first step in liability protection for business owners, but it is only the first step.  Once your LLC has been formed, you must take certain actions (and avoid certain others) to maintain a separate existence between yourself and your entity to ensure maximum liability protection.» Read More

Jul 19, 2018

The Merry Month of May: FinCEN, GDPR, and Financial Institutions

In 1599 the English Elizabethan dramatist Thomas Dekker (1572-1632) saw his play “The Shoemaker’s Holiday” first performed (in London). In Act 3, Scene V of the play, set in a French “neighborhood,” a famed bit of verse is included (relevant to occurrences in the play):

O, the month of May, the merry month of May

So frolic, so gay, and so green, so green, so green!» Read More