Hogan Lovells discusses U.S. Regulators’ Continued Focus on Leveraged Lending

On March 22, 2013, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation (“FDIC”), and Office of the Comptroller of the Currency (collectively, the “agencies”) published “Interagency Guidance on Leveraged Lending (78 Fed. Reg. 17766) (the “Guidance”).

The stated purpose of the Guidance is to ensure that federally regulated financial institutions conduct leveraged lending activities in a safe and sound manner so that they do not heighten risk in the U.S. banking system or the broader financial system through the origination and distribution of poorly underwritten and low-quality loans. The … Read more