Banking & Financial Services E-Note – August 2014
In This Issue:
– Lawmakers Urge Given to explain Emergency Lending Rules
– CFPB Pushing Colleges to become More Transparent in Bank Deals
– Report Finds Reversal in Trend Toward Subprime Automotive Loans
– CFPB Concerned Over Risks from Virtual Currencies
– Banks Pressured to hack Lower on Casino Money-Washing
– Small Companies Find Alternative Lending Includes CatchBanking & Financial Services E-Note – August 2014
– Excerpt from Lawmakers Urge Given to explain Emergency Lending Rules:
The Fed must clarify its emergency lending authority rules to foreclose the potential of “backdoor bailouts” inside a future economic crisis, a bipartisan number of lawmakers stated inside a letter. The central bank’s suggested rules for emergency lending place “no significant limitations” on its lending forces currently of crisis, inviting the possibilities of assistance much like that provided 5 years ago, 15 Senate and House people authored within the letter to Fed Chair Jesse Yellen.
Please visit full E-Note below to learn more.
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August 28, 2014
Burr Continues South Florida
Growth with New Financial
Services Attorney in Ft.
Lauderdale
Burr & Forman LLP is
pleased to announce the
addition of Douglas
“Doug” J. Stamm as an
associate in its Fort
Lauderdale office. He
joins the firm’s Financial
Services practice group,
concentrating on
corporate business, real estate and
commercial litigation. The addition of
Stamm to Burr’s Fort Lauderdale offices
follows the firm’s relocation earlier this
month to accommodate anticipated growth
in South Florida. Stamm is one of more
than 20 new associates expected to join
the firm across its Southeastern footprint
over the next several weeks.
Read Doug’s bio here, or contact him at
(954) 414-6586 or dstamm@burr.com.
Vivien Monaco Named
Secretary of Florida Bar’s
Environmental and Land Use
Law Section
Orlando-based Counsel,
Vivien Monaco was
elected as Secretary of
the Environmental and
Land Use Law Section of
The Florida Bar. She will
serve in this capacity for
the 2014-2015 year.
Vivien is a member of the firm’s Banking
and Real Estate Practice Group with a
focus on serving public and private real
estate clients in areas related to
environmental, land use, zoning and
growth management law. Monaco serves
public and private clients in areas related
to land use, zoning, growth management,
and environmental law, assisting them
with matters relating to transportation,
impact fee, permitting, approvals and
entitlement issues. She is a Florida Bar
CLICK HERE TO READ THE ANNOUNCEMENT
Headlines
Lawmakers Urge Fed to Clarify Emergency Lending Rules
CFPB Pushing Colleges to Be More Transparent in Bank Deals
Report Finds Reversal in Trend Toward Subprime Auto Loans
CFPB Concerned Over Risks from Virtual Currencies
Banks Pressured to Crack Down on Casino Money-Laundering
Small Businesses Find Alternative Lending Comes with Catch
Suit Over Cyber-Heist Raises Question of Banks’ Responsibility
News Briefs
Lawmakers Urge Fed to Clarify Emergency Lending Rules
The Federal Reserve must clarify its emergency lending authority rules to foreclose the
possibility of “backdoor bailouts” in a future financial crisis, a bipartisan group of
lawmakers said in a letter. The central bank’s proposed rules for emergency lending
place “no meaningful restrictions” on its lending powers in a time of crisis, inviting the
prospect of assistance similar to that provided five years ago, 15 Senate and House
members wrote in the letter to Federal Reserve Chair Janet Yellen.
(Source: Bloomberg Businessweek, 2014-08-18) Read More
CFPB Pushing Colleges to Be More Transparent in Bank Deals
As thousands of students prepare to flood college campuses, the government’s
consumer watchdog is urging universities to disclose how much money they receive
when banks promote debit cards, prepaid cards and checking accounts on their
campuses. Regulators say the terms of the accounts being offered to students are not
always clear, and some are riddled with fees.
(Source: The Columbus Dispatch, 2014-08-24) Read More
Report Finds Reversal in Trend Toward Subprime Auto Loans
Lenders are pulling back on extending car loans to consumers with very poor credit
histories, reversing a trend that had sparked fears of a new financial bubble, according
to a report by Moody’s Investors Service. That change has eased the pressure for
smaller finance companies to move further down the credit spectrum to remain
competitive.
(Source: FortWayne.com, 2014-08-24) Read More
board-certified lawyer in City, County and
Local Government Law. Read more here.
Who Will Think of the Tenants:
Split in Authority Regarding the
Interplay Between Bankruptcy
Code Sections
A useful tool granted to
trustees (and debtors-in-
possession) in
bankruptcy is the ability to
assume or reject leases.
The trustee can exploit
this power to the estate’s
economic advantage,
either assuming or
rejecting the lease, in an attempt to
maximize the value of the estate. For the
lessee of a bankrupt landlord, who may
rely on the lease to run a business, the
trustee’s decision to assume or reject can
have a profound effect.
Click here to read the full alert. For more
information, please contact Jay Haithcock.
OCIE Announces Exam
Initiative For Newly-Registered
Municipal Advisors
The SEC’s Office of
Compliance Inspections
and Examinations
(“OCIE”) announced on
August 19 a two-year,
three-phase examination
initiative targeting newly-
registered municipal
advisors. The MA
Examination Initiative hopes to engage a
significant portion of newly-registered
MA’s.
Read the full article on Burr’s Securities
Litigation & Arbitration Blog. For more
information, please contact Tom Potter.
U.S. Supreme Court Rules No
Presumption of Prudence For
ESOP Fiduciaries
The United States
Supreme Court clarified
the duty of prudence that
employee stock
ownership plan fiduciaries
owe to plan participants
in its June 25 decision
Fifth Third Bancorp v.
Dudenhoeffer.
Read the full article on Burr’s Securities
Litigation & Arbitration Blog. For more
information, please contact V. J. Graffeo.
Rik Tozzi to Speak at the
Residential Mortgage Litigation
CFPB Concerned Over Risks from Virtual Currencies
While members of Congress might be holding events on Capitol Hill to celebrate Bitcoin,
a dozen blocks west, the U.S. Consumer Financial Protection Bureau is now saying that
it’s wary of the risks associated with such virtual currencies. What risks? “Unclear costs,
volatile exchange rates, the threat of hacking and scams and that companies may not
offer help or refunds for lost or stolen funds,” the agency writes in a new warning to
consumers about not just Bitcoin, but similar products like XRP and Dogecoin.
(Source: The Washington Post (free reg. req’d), 2014-08-11) Read More
Banks Pressured to Crack Down on Casino Money-Laundering
Large global banks are facing increased pressure from U.S. regulators to clamp down on
casino money-laundering as the government pushes the industry to police not only its
own transactions but customers’ as well. Bankers, casino executives and consultants
said the U.S. crackdown has resulted in unprecedented scrutiny and collaboration
between the two industries, including banks vetting casino customers’ anti-money
laundering systems, checking to make sure casinos don’t accept anonymous wire
transfers, and offering databases and other information to help the gaming industry
identify risky transactions.
(Source: Reuters, 2014-08-15) Read More
Small Businesses Find Alternative Lending Comes with Catch
Silicon Valley has cooked up digital inventions to simplify everything from dating to
hailing cabs. Now it’s looking to “disrupt” another field — how small companies borrow
money.
(Source: The Wall Street Journal, 2014-08-25) Read More
Suit Over Cyber-Heist Raises Question of Banks’ Responsibility
Tennessee Electric Company (TEC Industrial) is suing its bank, TriSummit, after falling
victim to a $327,000 cyber-heist, in which they say TriSummit allowed an “unauthorized
transfer of funds.” The move is notable in that it holds banks responsible for not only
recovering the stolen funds, but also for damages for negligence in their security
measures — opening up a discussion of who exactly is responsible for hacker intrusions
in the case of stolen credentials.
(Source: Info Security, 2014-08-14) Read More
BURR & FORMAN BLOGS
CONSUMER FINANCE LITIGATION
ENVIRONMENTAL LAW MATTERS
NON-COMPETE & TRADE SECRETS
SECURITIES LITIGATION & ARBITRATION
& Regulatory Enforcement
Conference
Rik S. Tozzi will speak at
the American Conference
Institute’s 15th National
Forum on Residential
Mortgage Litigation &
Regulatory Enforcement.
The conference will be
held September 22-23,
2014 at The Adolphus in
Dallas, Texas. Tozzi will be speaking on
the topic of “A Focus on Residential
Mortgage Class Actions: New and
Emerging Cases and Theories, the
Continuing Impact of Wal-Mart v. Dukes
and Its Progeny on Certification Issues,
Innovative Settlement Considerations, and
More.” Burr is a sponsor of this event.
To learn more about the American
Conference Institute’s 15th National
Forum on Residential Mortgage Litigation
& Regulatory Enforcement, click here.
Burr & Forman LLP is a century old, full-service law firm with a forward-thinking approach to providing
legal solutions. We have nearly 300 attorneys and offices in Alabama, Florida, Georgia, Mississippi and
Tennessee. Burr & Forman offers a wide range of business and litigation services to diverse clients with
local, national, and international interests.
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