03.24.2011
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Updates
FDIC Approves Proposed Rule regarding Claims Process upon Orderly Liquidation
On Tuesday, March 15, 2011, the Board of the Federal Deposit Insurance Corporation approved a Notice of Proposed Rulemaking ("NPR") to clarify the application of orderly liquidation authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act"). The NPR provides a framework for the priority payment of creditors, and for the procedures associated with filing a claim with a receiver and, if necessary, for the pursuit of the claim in court. The NPR also clarifies how compensation will be recovered from directors and executives who are found to have been substantially responsible for any firm failure. Finally, the NPR seeks to ensure that the preferential and fraudulent transfer provisions of the Dodd-Frank Act are implemented in a manner consistent with the corresponding provisions of the Bankruptcy Code.
Federal Reserve Approves Rule Amending Regulation Z
On Friday, March 18, the Federal Reserve Board approved a rule amending Regulation Z (Truth in Lending) to clarify the Credit Card Accountability Responsibility and Disclosure Act of 2009 ("Credit Card Act"). The Credit Card Act enhances protections for credit card consumers and requires, among other things, that before opening a new credit card account or increasing the credit limit on a new account, credit card issuers consider an applicant's ability to make the required payments. Accordingly, the approved rule addresses certain practices that can lead to the extension of credit to individuals who are unable to pay. The amendments also cover the treatment of certain promotional fee waivers and the overall limitations on application and annual fees.
Read the Federal Reserve press release
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