Tag Archives: Regulation

What now for banks in the physical commodities sector?

Banks play an important business role in the physical commodities sector by providing the much needed access to capital and related risk management, including through: • extension of credit; • project finance; • market making and liquidity; • risk management and hedging; and • fostering competition. These services are especially important to small and medium-sized … Continue Reading

6 Months Later, Lenders Continue To Address ECP Issues

As most market participants are aware, the Dodd-Frank rule requiring all swap guarantors to be eligible contract participants ("ECP"s) under the Commodity Exchange Act became effective on March 31, 2013. Six months after effectiveness, lenders continue to address ECP issues under existing documents, and should be sure they are properly protected under new agreements.… Continue Reading

Loan Participations – Are You Diligent Enough?

This post was written by Reed Smith lawyers Susan Alker and Abbey Mansfield. If you are involved in the syndicated loan market – or if you buy risk participations from other lenders – you’ll want to know about this.  The FDIC recently sent out guidance on the topic of loan participations, reminding financial institutions of … Continue Reading

What’s Going On With Dodd-Frank?

It's now been several months since Dodd-Frank was enacted, and the regulators have been busy. There have been several proposed rules sent out for comment, and various agencies have produced studies, reports and final rules. If you want to get caught up on all the latest happenings, here's a handy resource for you.… Continue Reading

Too Big To Fail — Dodd-Frank and Sorkin

I've just finished reading Andrew Ross Sorkin's excellent book "Too Big To Fail". Turns out that Sorkin's book, though likely not intended for this purpose, provides a background story and explanation for much of the content of the Dodd-Frank Act - especially the "too big to fail" provisions.… Continue Reading

Dodd-Frank Changes the Game for Hedge Funds and PE Funds

As part of the Dodd-Frank financial reform legislation, the Private Fund Investment Advisers Registration Act of 2010 significantly changes the rules for hedge funds and private equity funds. If you manage a fund, or work with (or make loans to) funds, you'll want to know about the new requirements.… Continue Reading

Regulatory Reform – Upcoming Seminar on How It Affects the Financial Services Industry

Now that the Dodd Frank Act is expected to be enacted, attention turns to how this legislation will affect the financial services industry. Will it fundamentally change the industry in the same way that Glass-Steagall, the FDIC Act, and the groundbreaking securities laws did during the Depression era? Will this law be the game-changer everyone expects?… Continue Reading

Regulatory Updates for the Holiday Weekend

The last two weeks have brought new plans for regulation of financial institutions and financial markets, in both the US and the UK. The global trend toward increased regulation of finance is bound to have significant effects on lending institutions over the next few months and years.… Continue Reading

Derivatives Market Reform – Where Are We Headed?

What’s going on in the derivatives market these days?  There’s lots of talk about regulation — who, how, when, and what. My partners in our derivatives practice have written a summary of the three proposals for regulatory reform of the OTC derivatives market that are currently under consideration by Congress.  Key themes of these proposals include mandatory clearing, exchange trading, capital requirements, margin requirements, … Continue Reading

New Rules for Securitization

A new set of FASB rules may impact whether a securitization is treated as a “true sale” and whether companies with financial assets will have to consolidate their special purpose entities on their balance sheets.   For banks, the new rules may also mean that there will be additional capital requirements, to cover their conduits.  The Wall Street Journal has reported (subscription-based content) … Continue Reading

DOE Loan Guarantee Program

The U.S. Department of Energy has a new program to guarantee loans to support the development of renewable energy projects.   Lenders who meet the DOE’s requirements for eligibility have been invited to submit applications for partial guarantees from the DOE for the financing of projects that will generate electricity or thermal energy, using commercial technology.   The loans must be structured as traditional senior secured … Continue Reading

Purchasing Loans of Failed Financial Institutions from the FDIC

When financial institutions fail, the FDIC steps in and seizes the assets of these institutions. The largest categories of assets held by a failed financial institution are its performing and non-performing loans. These loans are in the process of being sold to the public in bulk through a sealed bid process. This post explains how the sale process works, and tells how you can find information about the loans that are for sale.… Continue Reading

Reforming Financial Markets – The UK Perspective

While we engage in debate about how to reform our own financial markets here in the US, similar activities are going on in other parts of the world.  There’s a new government proposal in the UK that includes plans to strengthen their regulatory entities, focusing on managing “high impact” institutions, increasing market transparency, improving consumer protection … Continue Reading