03.31.2011

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Updates

Federal Reserve Adopts Two Rules Expanding Consumer Protection

On Friday, March 25, 2011, the Federal Reserve Board adopted two rules expanding the coverage of consumer protection in the areas of credit transactions and leases of higher dollar amounts.  The rules amend Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) and implement certain requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act").  Protections will now be in place for credit transactions and consumer leases up to $50,000, as compared with $25,000 currently.  The amount will be adjusted annually to reflect any shifts in the consumer price index.

Read the Federal Reserve press release

Inter-Agency Proposed Rule regarding ABS Credit-Risk Retention

On Monday, March 28, 2011, the Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, the Federal Housing Finance Agency, and the Department of Housing and Urban Development announced the consideration of proposed rulemaking addressing section 941 of the Dodd-Frank Act and its risk retention requirements.  On Tuesday, March 29, 2011, the Federal Reserve Board subsequently proposed a rule requiring sponsors of asset-backed securities to retain at least 5 percent of the credit risk underlying the sponsored securities.  Comments on the rule must be received by June 10, 2011.

Read the SEC press release and the Federal Reserve press release on the Interagency Risk Retention Notice of Proposed Rulemaking 

Read the Federal Reserve press release on the proposed rule

Read the statement by Treasury Secretary Tim Geithner regarding the proposed rulemaking

The Federal Reserve is Unable to Issue New Rules under the Durbin Amendment by April 21

On Tuesday, March 29, Federal Reserve Chairman Bernanke stated that the Federal Reserve will be unable to meet the statutorily required April 21st deadline for the issuance of the Durbin interchange fee rules that impose a cap on debit card processing fees.  Bernanke stated that this delay is due to the massive volume of comments received.  The April 21 deadline was imposed by the Dodd-Frank Act.

The Federal Reserve Proposes Rules on Supervision of Financial Market Utilities

On Wednesday, March 30, 2011, the Federal Reserve proposed two rules regarding the supervision of financial market utilities (FMUs).  The proposed rules implement two provisions under Title VII of the Dodd-Frank Act.  FMUs have been designated as systemically significant by the Financial Stability Oversight Council, and include things such as payment systems and central securities depositories.  The rules, among other things, establish risk-management standards and establish requirements and procedures regarding advance notice of material changes of any rule, procedure, or operation.

Read the Federal Reserve press release

© 2011 Perkins Coie LLP


 

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