Davis Polk Discusses FSOC Revision to Nonbank SIFI Designation Framework

By Luigi L. De Ghenghi, Randall D. Guynn, Eric McLaughlin, David L. Portilla and Margaret E. Tahyar November 17, 2023 by renholding

The Financial Stability Oversight Council revised its interpretive guidance and analytic framework for FSOC’s authority to designate nonbank financial companies for Federal Reserve supervision and regulation and to otherwise monitor and respond to financial stability risks. These changes reverse key …

Sullivan & Cromwell Discusses Revised FSOC Guidance on Nonbank SIFI Designations

By Dalia O. Blass, Jay Clayton, H. Rodgin Cohen, Eric M. Diamond and Marion Leydier November 14, 2023 by renholding

On November 3, 2023, the 10 voting members of the Financial Stability Oversight Council (“FSOC” or “Council”)[1] voted unanimously to finalize (1) amendments to its existing interpretive guidance (“2019 Interpretive Guidance”)[2] governing …

SEC Chair Gensler Delivers Remarks on LIBOR Before the Financial Stability Oversight Council

By Gary Gensler August 16, 2023 by renholding

Thank you, Secretary Yellen. Thank you to all of my colleagues—not only at this table but around the globe—for their hard work putting an end to the London Interbank Offered Rate (LIBOR)

LIBOR was an innovation of the 1970s to

…

Davis Polk Discusses FSOC Proposals on Nonbank SIFIs

By Luigi L. De Ghenghi, Randall D. Guynn, Eric McLaughlin, David L. Portilla and Margaret E. Tahyar May 8, 2023 by renholding

The Financial Stability Oversight Council unanimously approved two proposals for public comment regarding FSOC’s authority to designate nonbank financial companies for Federal Reserve supervision and regulation, as summarized in our deck. These proposals would reverse key aspects of changes made …

SEC Commissioner Dissents from New Rule on Private Fund Data Collection

By Hester M. Peirce May 4, 2023 by renholding

Thank you, Chair Gensler. This expansion of Form PF data collection is the latest reflection of the Commission’s unquestioning faith in the Benevolent Power of More, a faith that I do not share. We have not explained sufficiently why we

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SEC Chair Speaks on New Rule for Private Fund Data Collection

By Gary Gensler May 4, 2023 by renholding

Today [May 3], the Commission considers adopting a final rule amending Form PF, an important tool that the Commission uses to oversee private fund advisers. I am pleased to support the amendments because they will improve visibility into private funds,

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The FTX Collapse: Why Did Due Diligence, Regulation, and Governance Evaporate?

By Georges Ugeux November 30, 2022 by renholding

FTX[1] is a Bahamas-based cryptocurrency exchange founded in 2019 that, at its peak in 2021, had over 1 million users, making it the world’s third largest crypto exchange by volume. Since November 11, 2022, though, FTX has been in …

Davis Polk Discusses FSOC Report on Financial Stability Risks of Digital Assets

By Randall D. Guynn, Luigi L. De Ghenghi, Joseph A. Hall, Gabriel D. Rosenberg and Margaret E. Tahyar October 31, 2022 by renholding

The report recently issued by the Financial Stability Oversight Council (FSOC) is quite different from the other reports published so far by the U.S. financial regulators in response to Executive Order 14067 on digital assets (FSOC Report).1 Helpfully, this …

SEC Chair Gensler on Proposed Joint Amendments to Form PF

By Gary Gensler August 11, 2022 by renholding

Today [August 10], the Commission is considering whether to propose joint amendments with the Commodity Futures Trading Commission (CFTC) to Form PF, an important reporting tool that the Commission and the Financial Stability Oversight Council (FSOC) use, respectively, to protect

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SEC Chair Gensler Speaks to FSOC on Money Market Funds, Open-End Bond Funds, and Hedge Funds

By Gary Gensler February 8, 2022 by renholding

Thank you, Secretary Yellen, for focusing the Council’s attention on financial resiliency with regard to three key parts of our capital markets — particularly money market funds, open-end bond funds, and hedge funds.

The fund industry gives retail and institutional

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Davis Polk Discusses Developments in Regulation Related to Private Equity

By Gregory S. Rowland, Leor Landa, Michael S. Hong, Lee Hochbaum and Sarah E. Kim February 7, 2022 by renholding

Rules and regulations

SEC proposes amendments to bolster private fund reporting

On January 26, 2022, the Securities and Exchange Commission (SEC) voted to propose certain amendments to Form PF designed to facilitate the SEC’s oversight of private fund advisers and …

Climate-Risk Disclosures and “Dirty Energy” Transfers: “Progress” Through Evasion

By John C. Coffee, Jr. January 25, 2022 by renholding

At first glance, recent progress towards transparency in corporate climate-risk disclosures seems exceptional. Over 2,000 companies now publish annual reports showing their carbon emissions data (although most self-interestedly omit Scope 3 data). Many (including most recently ExxonMobil) have made a …

Fragile Financial Regulation

By Pradeep Yadav and Yesha Yadav September 14, 2021 by renholding

As COVID-19 rocked financial markets in March 2020, the Treasury market failed to perform its role of maintaining financial stability. Unable to respond to the surge of investors liquidating their Treasury holdings to raise cash, the secondary market ground to …

Reforming the Macroprudential Regulatory Architecture in the United States

By Kathryn Judge and Anil Kashyap July 26, 2021 by renholding

When the COVID-19 pandemic shuttered major economies in March 2020, it also wreaked havoc on financial markets. In the first few weeks of March, investment-grade corporate bonds lost roughly a fifth of their value, on par with the declines in …

Resurrecting the Office of Financial Research

By Hilary J. Allen November 30, 2020 by renholding

The Office of Financial Research (“OFR”) was created by the Dodd-Frank Act to help address the gaps in data availability and analysis that had hampered governmental authorities in their response to the financial crisis of 2008. It was hoped that …

Presidential Pendulums in Finance

By Christina Parajon Skinner November 11, 2020 by renholding

While much attention has been paid to President Trump’s deregulatory efforts and intentions, presidential involvement in the work of the administrative agencies is not new. Past presidents including Ronald Reagan, Bill Clinton, and Barack Obama have acted up to – …

Coronavirus, Systemic Risk, and Lessons from 2008

By Kathryn Judge March 16, 2020 by renholding

The greatest single-day decline in the stock market this century, widespread fear and uncertainty, shuttered schools, an end to large gatherings everywhere from NBA games to the South by Southwest festival – these are just a few of the signs …

Davis Polk Discusses FSOC’s Shift to an Activities-Based Approach

By Annette Nazareth, Margaret Tahyar and Randy Guynn January 22, 2020 by renholding

The Financial Stability Oversight Council’s (FSOC) recently revised guidelines (the 2019 Guidelines)[1] on how it will identify and address financial stability risks are a major shift from the guidelines it issued in the immediate aftermath of …

Sullivan & Cromwell Discusses FSOC Changes to Nonbank SIFI-Designation Guidance

By Marion Leydier, William Torchiana, Samuel Woodall, Roderick Gilman and Jeremy Knobel January 6, 2020 by renholding

On December 4, 2019, the Financial Stability Oversight Council (the “Council”) voted unanimously to finalize amendments to its interpretive guidance (the “Final Guidance”) on designating nonbank financial companies as “systemically important financial institutions” (“SIFIs”).…

The Future of Financial Institution Resolution

By Paul L. Lee May 16, 2019 by renholding

One of the principal lessons learned from the 2007-2009 financial crisis was the need for new legal regimes to facilitate the rapid and orderly resolution of systemically important financial institutions without a government bailout. In the final part of a …

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