Senate Passes the Dodd-Frank Bill

On Thursday, July 15, 2010, the Senate approved the Dodd-Frank Bill by a vote of 60 to 39.  Having already passed the House, it is now anticipated that President Obama will sign the bill into law next week.

FDIC to Enhance Existing Backup Authorities over Insured Depository Institutions

On Monday, July 12, 2010, the board of directors of the Federal Deposit Insurance Corporation ("FDIC") voted to amend a Memorandum of Understanding with other federal banking regulators to enhance existing backup authorities over insured depository institutions.  In addition to other provisions, the vote allows the FDIC to broaden its regulatory scope to cover more institutions and to maintain full-time staff at each covered institution.  The revised agreement also improves the FDIC's access to essential information at the insured depository institutions.

Read the press release from the FDIC.

European Parliament Approves Bankers' Bonus Rules

The European Parliament, on Wednesday, July 7, 2010, approved strict rules regarding bankers' bonuses.  The new rules impose caps on upfront cash bonuses and provide that at least half of all bonuses must be paid in contingent capital and shares.  In addition to bankers' bonus rules, the European Parliament also approved rules regarding capital requirements aimed at mitigating any trading activity risk or risky exposure.

European Commission Proposes Changes to Existing European Consumer Protection Rules

On Monday, July 12, 2010, the European Commission proposed changes to existing rules in order to improve protection for bank account holders and retail investors.  The proposed rules aim to provide better reimbursement coverage for bank account holders and investors, faster payouts, reduce "red tape," inform bank account holders and investors of their rights, promote long-term and responsible financing, and provide wider protection for investors.