The document discusses whether the Dodd-Frank Act adequately addresses problems in the financial markets that contributed to the 2008 crisis. It examines key provisions of Dodd-Frank, including orderly liquidation authority, the Volcker Rule, and rulemaking progress. While Dodd-Frank aims to prevent future crises, critics argue many rules have yet to be finalized and some provisions may not be effective and could be challenged in courts. The ultimate effectiveness of Dodd-Frank will only be known if another major financial crisis occurs.
President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act on July 21, 2010. This legislation aims to modernize financial regulation and reduce systemic risk. It establishes new regulatory bodies like the Financial Stability Oversight Council and the Consumer Financial Protection Bureau. The Act also directs several federal agencies to undertake rulemakings to implement the new financial reforms. Stakeholders are encouraged to participate in the regulatory process as these new rules are developed.
The document summarizes key developments related to the Dodd-Frank Act in 2013, including:
1) Regulators faced challenges from Congressional and judicial scrutiny in implementing Dodd-Frank rules. Some rules were overturned in courts and regulators had to re-examine rulemaking.
2) Companies have an opportunity to influence rulemaking by providing quantitative data for cost-benefit analyses in response to rule proposals.
3) Company-investor engagement on governance topics has increased, driven by Dodd-Frank requirements like say-on-pay votes, and companies are expanding voluntary disclosures on various topics.
This document provides an overview of depository institutions, including commercial banks, thrifts, savings banks, and credit unions. It discusses their size, structure, products, balance sheets, regulation, and recent performance trends. The largest U.S. depository institutions are Citigroup, Bank of America, JPMorgan Chase, and Wells Fargo. Regulation comes from agencies like the FDIC, OCC, and Federal Reserve. There has been significant consolidation in the industry and a blurring of product lines between different financial institution types over time.
Compendio sistematizado de regulaciones USA relevantes en materia de fraude corporativo, corrupción, compliance y eventual riesgo penal internacional (también, en varias de ellas, para empresas chilenas, o sus dueños y ejecutivos)
Overview of Dodd Frank Recovery and Resolution PlanningLewis Adams
This document provides an overview of Dodd-Frank recovery and resolution planning requirements. It discusses that Dodd-Frank requires systemically important financial institutions to create recovery plans to recover from distress and resolution plans for an orderly liquidation if needed. The document outlines key elements of recovery plans like quantitative triggers, stress scenarios, and governance. It also discusses the two approaches to resolution plans - single point of entry and multiple point of entry - and components of operational resolution plans.
The document discusses data rights in the Department of Defense. It notes that data is handled differently depending on whether it involves a CRADA (Cooperative Research and Development Agreement), public assistance agreement, or contract. Major issues concerning data rights include data deliverables not being defined, using the wrong vehicle (e.g. public assistance for deliverables), deliverables not being reviewed properly, and contracts missing the right clauses around technical data and commercial vs. non-commercial data. The presentation provides guidance on understanding data requirements, the different vehicles for acquiring data, and one's role in the data acquisition process to help address these issues.
CBO provided estimates for H.R. 10, the Financial CHOICE Act, as ordered reported by the House Committee on Financial Services, and S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, as ordered reported by the Senate Committee on Banking. This presentation explains how enacting the legislation could affect the federal budget through costs to resolve failed financial institutions and administrative costs for federal financial regulators.
Presentation by Sarah Puro, Principal Analyst in CBO’s Budget Analysis Division, at a Congressional Research Service seminar.
The document discusses the Dodd-Frank Act, a 2010 law aimed at regulating the financial industry following the 2008 recession. It established the Consumer Financial Protection Bureau to protect consumers from predatory lending. Dodd-Frank also addressed "too big to fail" institutions by allowing close oversight of large banks and requiring "living will" plans in case of failure. However, critics argue Dodd-Frank creates moral hazard by protecting large banks and places undue burdens on small lenders, restricting credit availability. The full impacts of Dodd-Frank remain uncertain as many rules have yet to be finalized.
President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act on July 21, 2010. This legislation aims to modernize financial regulation and reduce systemic risk. It establishes new regulatory bodies like the Financial Stability Oversight Council and the Consumer Financial Protection Bureau. The Act also directs several federal agencies to undertake rulemakings to implement the new financial reforms. Stakeholders are encouraged to participate in the regulatory process as these new rules are developed.
The document summarizes key developments related to the Dodd-Frank Act in 2013, including:
1) Regulators faced challenges from Congressional and judicial scrutiny in implementing Dodd-Frank rules. Some rules were overturned in courts and regulators had to re-examine rulemaking.
2) Companies have an opportunity to influence rulemaking by providing quantitative data for cost-benefit analyses in response to rule proposals.
3) Company-investor engagement on governance topics has increased, driven by Dodd-Frank requirements like say-on-pay votes, and companies are expanding voluntary disclosures on various topics.
This document provides an overview of depository institutions, including commercial banks, thrifts, savings banks, and credit unions. It discusses their size, structure, products, balance sheets, regulation, and recent performance trends. The largest U.S. depository institutions are Citigroup, Bank of America, JPMorgan Chase, and Wells Fargo. Regulation comes from agencies like the FDIC, OCC, and Federal Reserve. There has been significant consolidation in the industry and a blurring of product lines between different financial institution types over time.
Compendio sistematizado de regulaciones USA relevantes en materia de fraude corporativo, corrupción, compliance y eventual riesgo penal internacional (también, en varias de ellas, para empresas chilenas, o sus dueños y ejecutivos)
Overview of Dodd Frank Recovery and Resolution PlanningLewis Adams
This document provides an overview of Dodd-Frank recovery and resolution planning requirements. It discusses that Dodd-Frank requires systemically important financial institutions to create recovery plans to recover from distress and resolution plans for an orderly liquidation if needed. The document outlines key elements of recovery plans like quantitative triggers, stress scenarios, and governance. It also discusses the two approaches to resolution plans - single point of entry and multiple point of entry - and components of operational resolution plans.
The document discusses data rights in the Department of Defense. It notes that data is handled differently depending on whether it involves a CRADA (Cooperative Research and Development Agreement), public assistance agreement, or contract. Major issues concerning data rights include data deliverables not being defined, using the wrong vehicle (e.g. public assistance for deliverables), deliverables not being reviewed properly, and contracts missing the right clauses around technical data and commercial vs. non-commercial data. The presentation provides guidance on understanding data requirements, the different vehicles for acquiring data, and one's role in the data acquisition process to help address these issues.
CBO provided estimates for H.R. 10, the Financial CHOICE Act, as ordered reported by the House Committee on Financial Services, and S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, as ordered reported by the Senate Committee on Banking. This presentation explains how enacting the legislation could affect the federal budget through costs to resolve failed financial institutions and administrative costs for federal financial regulators.
Presentation by Sarah Puro, Principal Analyst in CBO’s Budget Analysis Division, at a Congressional Research Service seminar.
The document discusses the Dodd-Frank Act, a 2010 law aimed at regulating the financial industry following the 2008 recession. It established the Consumer Financial Protection Bureau to protect consumers from predatory lending. Dodd-Frank also addressed "too big to fail" institutions by allowing close oversight of large banks and requiring "living will" plans in case of failure. However, critics argue Dodd-Frank creates moral hazard by protecting large banks and places undue burdens on small lenders, restricting credit availability. The full impacts of Dodd-Frank remain uncertain as many rules have yet to be finalized.
This document discusses recent cases where banking executives have been held personally liable for compliance failures at their institutions. It notes that the New York Department of Financial Services plans to propose requiring senior banking executives to personally certify the adequacy of their institutions' anti-money laundering programs. This would increase pressure on firms to prevent financial crimes. The document also reviews large fines issued to numerous financial institutions for violations of sanctions and anti-money laundering laws over the past decade.
CAPITAL MARKETS ALERT: How Dodd-Frank and Other New U.S. Laws May Affect Non-...Patton Boggs LLP
The document discusses how new U.S. laws like the Dodd-Frank Act may affect non-U.S. financial institutions. Key points include:
1) The Dodd-Frank Act allows the U.S. to more aggressively assert jurisdiction over foreign financial firms' activities outside the U.S. if they impact the U.S. financial system.
2) Foreign firms deemed "systemically significant" by a new council could be placed under Federal Reserve supervision and new capital rules.
3) The act expands the SEC's authority over foreign firms in fraud cases involving significant U.S. conduct or effects.
4) Foreign subsidiaries of financial firms may be subject to the act
The Dodd-Frank Act aims to create a more stable financial system through increased regulations and consumer protections. It establishes new regulatory agencies, restrictions on large banks, and hundreds of new rules. The act aims to end taxpayer bailouts of financial institutions, increase transparency, and protect investors. One key change was removing Regulation Q which prohibited paying interest on business checking accounts, potentially impacting banks' revenues and customers' cash management strategies.
This document is a memorandum of decision from a United States bankruptcy court regarding a motion by common stockholders of Eastman Kodak Company seeking the appointment of an official committee of equity security holders. The court denies the motion, finding that an equity committee is not necessary and would be too costly. The court had previously denied a similar motion a year earlier. Key factors in the court's decision include the low likelihood that equity holders would receive any distribution in the bankruptcy, the adequacy of existing representation of stakeholder interests, and the potential for delay of the bankruptcy proceedings. The stockholders failed to provide evidence that Kodak had materially undervalued its business or patent portfolio such that equity holders might recover value.
May 13, 2015 Webinar
Presented by EDR & EBA
“The Dodd-Frank Act” is all over the news. It’s reportedly killing community banks, and will impact all of the banking members in this distribution in some capacity. In continuation of a February Environmental Bankers Association - Risk Management Call (EBA-RMC) John Rybak and Greg Lampe of BB&T Bank, and attorney Brad Merrill of Snell-Wilmer, will provide an explanation of what’s going on, notably with respect to Banking Vendor Management (“vetting the vendors”).
Since its passage in 2010, implementation and interpretation of the 2,323 page long Dodd-Frank Act has touched most every part of banking including how banks use vendors, particularly in the area of mortgages and consumer compliance. Five years later there remains substantial uncertainty as new rule making continues. During our call we will provide a summary of key regulatory areas every banker should be aware of in vendor management as well as some of the general results of Dodd-Frank and exposure for non-compliance.
Contents
1. Dodd Frank Act and Whistleblower Protection: Sarbanes Oxley on Steroids - Page 5
2. Dodd Frank Act, Section 922: Whistleblower Protection - Page 8
3. The 12 most important definitions in the Sarbanes Oxley Act - Page 23
4. Dodd Frank Act, SEC. 989G: Exemption for Non accelerated filers - Page 27
5. Internal Controls, the Sarbanes Oxley Act and the Dodd Frank Act - Page 28
6. Study and Recommendations on Section 404(b) of the Sarbanes - Oxley Act of 2002 For Issuers With Public Float Between $75 and $250 Million - Page 33
7. A very interesting letter - Page 54
8. Auditing Standards Related to the Auditor's Assessment of, and Response to, Risk (AS No. 8 through 15) - Page 57
9. Oversight of the U.S. Securities and Exchange Commission: Evaluating Present Reforms and Future Challenges by Chairman Mary L. Schapiro - Page 59
10. The PCAOB passes the Adequacy Assessment of the European Union - Page 69
11. Public Company Accounting Oversight Board (PCAOB)
Interesting parts from the Strategic Plan (2009 - 2013) - Page 71
12. Sarbanes Oxley jobs and careers in 2011 - Page 98
13. What is "internal control over financial reporting"? - Page 102
14. What is "Off-Balance Sheet Arrangement"? – Page 105
15. PCAOB Enters into Cooperative Agreement with United Kingdom Audit Regulator - Page 110
16. Congressional Oversight Panel, Examining the Consequences of Mortgage Irregularities for Financial Stability and Foreclosure Mitigation, and the PCAOB Staff Audit Practice Alert NO. 7 -
Page 112
17. PCAOB staff audit practice Alert No 7 - Page 118
18. PCAOB Issues Concept Release on Auditor's Reporting Model - Page 128
19. SEC Proposes Rules Requiring Listing Standards for
Compensation Committees and Compensation Consultant - Page 130
20. The Statement on Standards for Attestation Engagements (SSAE) No. 16 - Page 135
21. PCAOB Issues Concept Release on Auditor Independence and Audit Firm Rotation - Page 143
22. Joint Press Release - U. S. Securities and Exchange Commission,
China Securities Regulatory Commission, Chinese Ministry of Finance - Page 145
23. Updated Information on PCAOB International Inspections - Page 148
24. Opening Remarks, Daniel L. Goelzer, Board Member
PCAOB Roundtable , Sept. 15, 2011, Washington, DC - Page 156
25. The Auditor's Reporting Model, James R. Doty, Chairman
PCAOB Roundtable, Sept. 15, 2011 - Washington, DC - Page 158
26. Case Study: UBS - Page 160
27. COSO Internal Control - Integrated Framework Update Project
Frequently Asked Questions (September 2011) - Page 169
28. The role of the Board of Directors in Enron’s Collapse - Page 173
29. PCAOB Enters Into Cooperative Agreement with Dubai - Page 201
30. U.S. Securities and Exchange Commission, Annual Report on the Dodd Frank Whistleblower Program, Fiscal Year 2011 - Page 203
31. Whistleblower Incentive Awards Made During Fiscal Year 2011 - Page 212
32. The 1st Circuit ruled that employees of private contractors
working for public compani
This document summarizes key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act related to the creation of the Consumer Financial Protection Bureau (CFPB). It outlines the CFPB's structure, functions, rulemaking authority, and enforcement powers. Additionally, it discusses ways state Attorneys General can partner with the CFPB, including compelling rulemaking, petitioning for rulemaking, and commenting on proposed rules. The overall goal is to establish an effective partnership between the CFPB and state AGs to enforce consumer financial protection.
CLE COURS BANKING LAW FOR GENERAL PRACTITIONERMissy Cruz
This document provides an overview of banking law for general practitioners. It discusses how banks are subject to specialized state and federal statutes rather than general business laws. It outlines the various federal and state banking regulatory agencies and their roles. Finally, it summarizes several key federal banking statutes and regulations, state banking laws, capital requirements, basic bank powers, and restrictions on transactions between banks and their affiliates.
Beyond Benchmarking, How Should Law and Corporate Compliance IntersectMichele DeStefano
In this post melt-down climate, the regulatory environment raises questions about the compliance function in large, publicly traded corporations. What is it? What purpose does and should it serve? How is the compliance function different or the same as the legal, ethics, or risk management functions? And who should oversee compliance? Although some exists, more empirical research should be done on what function a compliance department serves, where compliance is currently housed in large, publicly traded corporations and, more importantly, why corporations have located the compliance function within or outside the legal department. Further, no other study to date entails qualitative research with United States’ general counsels, chief compliance officers and other non-lawyer senior management on these issues. The purpose of this project is to explore the following questions: (i) What is compliance? What is the major purpose of a compliance department, what areas does it cover (ii) How is it managed and where is it currently housed in large, publicly traded corporations, and (iii) What are the risks and benefits of having the compliance function separated from the legal department and run by non-lawyers (or non-practicing lawyers) that report to the CEO and/or board of directors? To investigate these questions, I i) talked briefly with forty general counsels of S&P 500 corporations in banking, pharmaceutical, and petroleum industries about compliance within their organization; and ii) conducted thirty in-depth qualitative interviews with general counsels and chief compliance officers of large, publicly traded corporations across a variety of industries.
The research analysis will lead to a series of articles. The first article, Transitioning Corporate Governance to Compliance will take the position that a transition in corporate governance has occurred over the past 20 years. What might have been thought of 20 years ago as the basic corporate governance function is now being ceded to compliance departments in large publicly traded organizations. This article will overview of what role the compliance function at some large, publicly traded corporations serves. Through the voices of the Compliance Study interviewees, it will analyze and present a typology of roles that compliance officers may play and recommend which role is the ideal one.
The second article, The Government’s Unofficial Stance on Compliance Departments: To Comply or Not to Comply? will analyze the question of whether whether compliance should be separated from the legal department. To that end, it will explore the risks and benefits of such a structure and the limitations that exist when the compliance function is led by the general counsel.
The purported costs of provincial autonomy in Canadian securities regulation have been well documented. Proposals for centralizing the securities regulatory regime, whether under a national regulator or through restricting the scope of provincial divergence from national standards, have consistently cited the costliness of the current regime. However, policymakers' cognitive biases lead them from time to time to overemphasize the need for decisive and swift action, which in turn causes them to abandon sound decision-making processes. Provincial autonomy ensures that policymaking with national reach is process-oriented and is more likely to be guided by facts and rational projections. Supporters of centralization discount or ignore these features of decentralization and are too sanguine about the ability of centralized regulators to adhere to process. Any further proposals for reform should properly account for these effects.
PHH - Consumer Financial Services Alert 22 June 2015 FINALOri Lev
The CFPB issued its first final decision in a contested administrative proceeding against PHH Corp. Director Cordray overturned the ALJ's ruling and ordered PHH to pay over $109 million in disgorgement, much higher than the $6.4 million recommended by the ALJ. Key aspects of the decision include that no statute of limitations applies to CFPB administrative actions under RESPA, RESPA violations accrue when kickbacks are paid rather than at closing, and Section 8(c)(2) of RESPA does not shield payments for referrals even if they are at fair market value. The decision establishes significant new precedents around RESPA interpretation and CFPB administrative procedures.
The document discusses several key points about government contracting:
1) It provides an overview of funding amounts and opportunities available through the American Recovery and Reinvestment Act (ARRA).
2) It outlines registration requirements and where to find contracting rules and regulations to do work for the federal government.
3) It highlights differences in government contracts compared to private sector contracts, such as extensive oversight and compliance requirements.
The Anti-Money Laundering Act of 2020 passed the Senate and House and aims to comprehensively reform and modernize the US anti-money laundering regime. If signed into law, it would codify a risk-based approach, modernize regulations through technology, and expand information sharing and beneficial ownership disclosure requirements. However, the President has indicated he may veto the bill and Congress would need to override the veto.
The document discusses the evolution of the Consumer Financial Protection Bureau (CFPB) and outlines some of its proposed powers and responsibilities. Key points include:
- The CFPB started as an independent agency but evolved to be a semi-independent bureau within the Federal Reserve.
- It would have rulemaking, supervisory, and enforcement authority over consumer financial products and services.
- There is debate around the scope of its authority over institutions and its independence from other regulators.
This document lists 14 laws and standards related to electronic signatures and records compliance, including the Uniform Electronic Transactions Act (UETA), Electronic Signatures in Global and National Commerce Act (E-SIGN), Sarbanes-Oxley Act, Health Insurance Portability and Accountability Act (HIPAA), and others. It provides brief descriptions of key provisions and requirements for each related to establishing the legal validity of electronic records and signatures.
The Insolvency and Bankruptcy Code 2015 Mukesh Chand
The document discusses the history of bankruptcy reforms in India through various committees since 1964 and outlines the key issues with the current framework. It proposes the objectives, principles and features of the new Insolvency and Bankruptcy Code of India. The Code aims to provide for a time-bound resolution process, maximize asset value, balance liquidation and reorganization, ensure equitable treatment of creditors, and establish a transparent framework. It will be based on principles of viability being a business decision, control by legislature/courts over process but not decisions, and appointment of resolution professionals.
This document discusses challenges to statutory adjudication in the construction industry and proposes measures to diminish judicial intervention. It finds that as payment claims increase in size, so too does the proportion of determinations challenged through judicial review. Larger claims are more likely to involve complex issues that parties seek to dispute in court. However, extensive litigation undermines the objective of facilitating cash flow. The document examines current approaches used by courts to limit review and proposes that courts adopt a broad view of jurisdictional facts, and allow adjudicators to correct defects upon remittal rather than quashing entire determinations. It argues these pragmatic measures can better balance parties' rights with the legislation's purpose of resolving disputes quickly and inexpensively.
The document discusses New York LLC law and whether amendments should be made, especially regarding dissolution. It provides background on LLC law and notes issues like ambiguity around dissolution standards. The key points are:
1) New York LLC law allows for judicial dissolution if "not reasonably practicable to carry on business." However, the meaning of this standard is unclear.
2) Unlike corporate law, LLC law does not address dissolution for fraud, illegality or oppression of members.
3) Courts have interpreted the standard differently, creating conflicting case law, as the legislature has not clarified or amended the law in over 15 years.
The district court's opinion granted summary judgment to the Illinois Department of Transportation (IDOT) in a case brought by Dunnet Bay Construction Company challenging IDOT's implementation of federal Disadvantaged Business Enterprise (DBE) participation goals. The American Road and Transportation Builders Association argues in an amicus brief that the district court's opinion establishes an erroneous standard of review that would effectively eliminate meaningful judicial review of whether DBE goals have been unlawfully converted to quotas. Specifically, the opinion (1) applies a deferential standard of review rather than strict scrutiny; (2) limits review to whether IDOT followed federal regulations rather than considering evidence the goals operated as quotas; and (3) finds no way IDOT could have exceeded
Amy Wong has over 15 years of experience in customer service, sales, and education. She is currently an Assistant Selling Manager at Holt Renfrew Hugo Boss Shop in Calgary, where she helps achieve sales targets and provides exceptional customer service. Previously, she held various sales and customer service roles at Holt Renfrew and cultivated a loyal client base. Amy has a high school diploma and coursework in business administration. She is proficient in English, Cantonese, and Mandarin.
Este documento define una función como una relación entre dos conjuntos donde cada elemento del conjunto dominio tiene asignado exactamente un elemento del conjunto imagen. Explica que el conjunto dominio se refiere al conjunto de partida y el conjunto imagen se refiere al conjunto de llegada. Además, incluye un gráfico de conjuntos para ilustrar la relación entre un conjunto dominio y un conjunto imagen en una función.
This document discusses recent cases where banking executives have been held personally liable for compliance failures at their institutions. It notes that the New York Department of Financial Services plans to propose requiring senior banking executives to personally certify the adequacy of their institutions' anti-money laundering programs. This would increase pressure on firms to prevent financial crimes. The document also reviews large fines issued to numerous financial institutions for violations of sanctions and anti-money laundering laws over the past decade.
CAPITAL MARKETS ALERT: How Dodd-Frank and Other New U.S. Laws May Affect Non-...Patton Boggs LLP
The document discusses how new U.S. laws like the Dodd-Frank Act may affect non-U.S. financial institutions. Key points include:
1) The Dodd-Frank Act allows the U.S. to more aggressively assert jurisdiction over foreign financial firms' activities outside the U.S. if they impact the U.S. financial system.
2) Foreign firms deemed "systemically significant" by a new council could be placed under Federal Reserve supervision and new capital rules.
3) The act expands the SEC's authority over foreign firms in fraud cases involving significant U.S. conduct or effects.
4) Foreign subsidiaries of financial firms may be subject to the act
The Dodd-Frank Act aims to create a more stable financial system through increased regulations and consumer protections. It establishes new regulatory agencies, restrictions on large banks, and hundreds of new rules. The act aims to end taxpayer bailouts of financial institutions, increase transparency, and protect investors. One key change was removing Regulation Q which prohibited paying interest on business checking accounts, potentially impacting banks' revenues and customers' cash management strategies.
This document is a memorandum of decision from a United States bankruptcy court regarding a motion by common stockholders of Eastman Kodak Company seeking the appointment of an official committee of equity security holders. The court denies the motion, finding that an equity committee is not necessary and would be too costly. The court had previously denied a similar motion a year earlier. Key factors in the court's decision include the low likelihood that equity holders would receive any distribution in the bankruptcy, the adequacy of existing representation of stakeholder interests, and the potential for delay of the bankruptcy proceedings. The stockholders failed to provide evidence that Kodak had materially undervalued its business or patent portfolio such that equity holders might recover value.
May 13, 2015 Webinar
Presented by EDR & EBA
“The Dodd-Frank Act” is all over the news. It’s reportedly killing community banks, and will impact all of the banking members in this distribution in some capacity. In continuation of a February Environmental Bankers Association - Risk Management Call (EBA-RMC) John Rybak and Greg Lampe of BB&T Bank, and attorney Brad Merrill of Snell-Wilmer, will provide an explanation of what’s going on, notably with respect to Banking Vendor Management (“vetting the vendors”).
Since its passage in 2010, implementation and interpretation of the 2,323 page long Dodd-Frank Act has touched most every part of banking including how banks use vendors, particularly in the area of mortgages and consumer compliance. Five years later there remains substantial uncertainty as new rule making continues. During our call we will provide a summary of key regulatory areas every banker should be aware of in vendor management as well as some of the general results of Dodd-Frank and exposure for non-compliance.
Contents
1. Dodd Frank Act and Whistleblower Protection: Sarbanes Oxley on Steroids - Page 5
2. Dodd Frank Act, Section 922: Whistleblower Protection - Page 8
3. The 12 most important definitions in the Sarbanes Oxley Act - Page 23
4. Dodd Frank Act, SEC. 989G: Exemption for Non accelerated filers - Page 27
5. Internal Controls, the Sarbanes Oxley Act and the Dodd Frank Act - Page 28
6. Study and Recommendations on Section 404(b) of the Sarbanes - Oxley Act of 2002 For Issuers With Public Float Between $75 and $250 Million - Page 33
7. A very interesting letter - Page 54
8. Auditing Standards Related to the Auditor's Assessment of, and Response to, Risk (AS No. 8 through 15) - Page 57
9. Oversight of the U.S. Securities and Exchange Commission: Evaluating Present Reforms and Future Challenges by Chairman Mary L. Schapiro - Page 59
10. The PCAOB passes the Adequacy Assessment of the European Union - Page 69
11. Public Company Accounting Oversight Board (PCAOB)
Interesting parts from the Strategic Plan (2009 - 2013) - Page 71
12. Sarbanes Oxley jobs and careers in 2011 - Page 98
13. What is "internal control over financial reporting"? - Page 102
14. What is "Off-Balance Sheet Arrangement"? – Page 105
15. PCAOB Enters into Cooperative Agreement with United Kingdom Audit Regulator - Page 110
16. Congressional Oversight Panel, Examining the Consequences of Mortgage Irregularities for Financial Stability and Foreclosure Mitigation, and the PCAOB Staff Audit Practice Alert NO. 7 -
Page 112
17. PCAOB staff audit practice Alert No 7 - Page 118
18. PCAOB Issues Concept Release on Auditor's Reporting Model - Page 128
19. SEC Proposes Rules Requiring Listing Standards for
Compensation Committees and Compensation Consultant - Page 130
20. The Statement on Standards for Attestation Engagements (SSAE) No. 16 - Page 135
21. PCAOB Issues Concept Release on Auditor Independence and Audit Firm Rotation - Page 143
22. Joint Press Release - U. S. Securities and Exchange Commission,
China Securities Regulatory Commission, Chinese Ministry of Finance - Page 145
23. Updated Information on PCAOB International Inspections - Page 148
24. Opening Remarks, Daniel L. Goelzer, Board Member
PCAOB Roundtable , Sept. 15, 2011, Washington, DC - Page 156
25. The Auditor's Reporting Model, James R. Doty, Chairman
PCAOB Roundtable, Sept. 15, 2011 - Washington, DC - Page 158
26. Case Study: UBS - Page 160
27. COSO Internal Control - Integrated Framework Update Project
Frequently Asked Questions (September 2011) - Page 169
28. The role of the Board of Directors in Enron’s Collapse - Page 173
29. PCAOB Enters Into Cooperative Agreement with Dubai - Page 201
30. U.S. Securities and Exchange Commission, Annual Report on the Dodd Frank Whistleblower Program, Fiscal Year 2011 - Page 203
31. Whistleblower Incentive Awards Made During Fiscal Year 2011 - Page 212
32. The 1st Circuit ruled that employees of private contractors
working for public compani
This document summarizes key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act related to the creation of the Consumer Financial Protection Bureau (CFPB). It outlines the CFPB's structure, functions, rulemaking authority, and enforcement powers. Additionally, it discusses ways state Attorneys General can partner with the CFPB, including compelling rulemaking, petitioning for rulemaking, and commenting on proposed rules. The overall goal is to establish an effective partnership between the CFPB and state AGs to enforce consumer financial protection.
CLE COURS BANKING LAW FOR GENERAL PRACTITIONERMissy Cruz
This document provides an overview of banking law for general practitioners. It discusses how banks are subject to specialized state and federal statutes rather than general business laws. It outlines the various federal and state banking regulatory agencies and their roles. Finally, it summarizes several key federal banking statutes and regulations, state banking laws, capital requirements, basic bank powers, and restrictions on transactions between banks and their affiliates.
Beyond Benchmarking, How Should Law and Corporate Compliance IntersectMichele DeStefano
In this post melt-down climate, the regulatory environment raises questions about the compliance function in large, publicly traded corporations. What is it? What purpose does and should it serve? How is the compliance function different or the same as the legal, ethics, or risk management functions? And who should oversee compliance? Although some exists, more empirical research should be done on what function a compliance department serves, where compliance is currently housed in large, publicly traded corporations and, more importantly, why corporations have located the compliance function within or outside the legal department. Further, no other study to date entails qualitative research with United States’ general counsels, chief compliance officers and other non-lawyer senior management on these issues. The purpose of this project is to explore the following questions: (i) What is compliance? What is the major purpose of a compliance department, what areas does it cover (ii) How is it managed and where is it currently housed in large, publicly traded corporations, and (iii) What are the risks and benefits of having the compliance function separated from the legal department and run by non-lawyers (or non-practicing lawyers) that report to the CEO and/or board of directors? To investigate these questions, I i) talked briefly with forty general counsels of S&P 500 corporations in banking, pharmaceutical, and petroleum industries about compliance within their organization; and ii) conducted thirty in-depth qualitative interviews with general counsels and chief compliance officers of large, publicly traded corporations across a variety of industries.
The research analysis will lead to a series of articles. The first article, Transitioning Corporate Governance to Compliance will take the position that a transition in corporate governance has occurred over the past 20 years. What might have been thought of 20 years ago as the basic corporate governance function is now being ceded to compliance departments in large publicly traded organizations. This article will overview of what role the compliance function at some large, publicly traded corporations serves. Through the voices of the Compliance Study interviewees, it will analyze and present a typology of roles that compliance officers may play and recommend which role is the ideal one.
The second article, The Government’s Unofficial Stance on Compliance Departments: To Comply or Not to Comply? will analyze the question of whether whether compliance should be separated from the legal department. To that end, it will explore the risks and benefits of such a structure and the limitations that exist when the compliance function is led by the general counsel.
The purported costs of provincial autonomy in Canadian securities regulation have been well documented. Proposals for centralizing the securities regulatory regime, whether under a national regulator or through restricting the scope of provincial divergence from national standards, have consistently cited the costliness of the current regime. However, policymakers' cognitive biases lead them from time to time to overemphasize the need for decisive and swift action, which in turn causes them to abandon sound decision-making processes. Provincial autonomy ensures that policymaking with national reach is process-oriented and is more likely to be guided by facts and rational projections. Supporters of centralization discount or ignore these features of decentralization and are too sanguine about the ability of centralized regulators to adhere to process. Any further proposals for reform should properly account for these effects.
PHH - Consumer Financial Services Alert 22 June 2015 FINALOri Lev
The CFPB issued its first final decision in a contested administrative proceeding against PHH Corp. Director Cordray overturned the ALJ's ruling and ordered PHH to pay over $109 million in disgorgement, much higher than the $6.4 million recommended by the ALJ. Key aspects of the decision include that no statute of limitations applies to CFPB administrative actions under RESPA, RESPA violations accrue when kickbacks are paid rather than at closing, and Section 8(c)(2) of RESPA does not shield payments for referrals even if they are at fair market value. The decision establishes significant new precedents around RESPA interpretation and CFPB administrative procedures.
The document discusses several key points about government contracting:
1) It provides an overview of funding amounts and opportunities available through the American Recovery and Reinvestment Act (ARRA).
2) It outlines registration requirements and where to find contracting rules and regulations to do work for the federal government.
3) It highlights differences in government contracts compared to private sector contracts, such as extensive oversight and compliance requirements.
The Anti-Money Laundering Act of 2020 passed the Senate and House and aims to comprehensively reform and modernize the US anti-money laundering regime. If signed into law, it would codify a risk-based approach, modernize regulations through technology, and expand information sharing and beneficial ownership disclosure requirements. However, the President has indicated he may veto the bill and Congress would need to override the veto.
The document discusses the evolution of the Consumer Financial Protection Bureau (CFPB) and outlines some of its proposed powers and responsibilities. Key points include:
- The CFPB started as an independent agency but evolved to be a semi-independent bureau within the Federal Reserve.
- It would have rulemaking, supervisory, and enforcement authority over consumer financial products and services.
- There is debate around the scope of its authority over institutions and its independence from other regulators.
This document lists 14 laws and standards related to electronic signatures and records compliance, including the Uniform Electronic Transactions Act (UETA), Electronic Signatures in Global and National Commerce Act (E-SIGN), Sarbanes-Oxley Act, Health Insurance Portability and Accountability Act (HIPAA), and others. It provides brief descriptions of key provisions and requirements for each related to establishing the legal validity of electronic records and signatures.
The Insolvency and Bankruptcy Code 2015 Mukesh Chand
The document discusses the history of bankruptcy reforms in India through various committees since 1964 and outlines the key issues with the current framework. It proposes the objectives, principles and features of the new Insolvency and Bankruptcy Code of India. The Code aims to provide for a time-bound resolution process, maximize asset value, balance liquidation and reorganization, ensure equitable treatment of creditors, and establish a transparent framework. It will be based on principles of viability being a business decision, control by legislature/courts over process but not decisions, and appointment of resolution professionals.
This document discusses challenges to statutory adjudication in the construction industry and proposes measures to diminish judicial intervention. It finds that as payment claims increase in size, so too does the proportion of determinations challenged through judicial review. Larger claims are more likely to involve complex issues that parties seek to dispute in court. However, extensive litigation undermines the objective of facilitating cash flow. The document examines current approaches used by courts to limit review and proposes that courts adopt a broad view of jurisdictional facts, and allow adjudicators to correct defects upon remittal rather than quashing entire determinations. It argues these pragmatic measures can better balance parties' rights with the legislation's purpose of resolving disputes quickly and inexpensively.
The document discusses New York LLC law and whether amendments should be made, especially regarding dissolution. It provides background on LLC law and notes issues like ambiguity around dissolution standards. The key points are:
1) New York LLC law allows for judicial dissolution if "not reasonably practicable to carry on business." However, the meaning of this standard is unclear.
2) Unlike corporate law, LLC law does not address dissolution for fraud, illegality or oppression of members.
3) Courts have interpreted the standard differently, creating conflicting case law, as the legislature has not clarified or amended the law in over 15 years.
The district court's opinion granted summary judgment to the Illinois Department of Transportation (IDOT) in a case brought by Dunnet Bay Construction Company challenging IDOT's implementation of federal Disadvantaged Business Enterprise (DBE) participation goals. The American Road and Transportation Builders Association argues in an amicus brief that the district court's opinion establishes an erroneous standard of review that would effectively eliminate meaningful judicial review of whether DBE goals have been unlawfully converted to quotas. Specifically, the opinion (1) applies a deferential standard of review rather than strict scrutiny; (2) limits review to whether IDOT followed federal regulations rather than considering evidence the goals operated as quotas; and (3) finds no way IDOT could have exceeded
Amy Wong has over 15 years of experience in customer service, sales, and education. She is currently an Assistant Selling Manager at Holt Renfrew Hugo Boss Shop in Calgary, where she helps achieve sales targets and provides exceptional customer service. Previously, she held various sales and customer service roles at Holt Renfrew and cultivated a loyal client base. Amy has a high school diploma and coursework in business administration. She is proficient in English, Cantonese, and Mandarin.
Este documento define una función como una relación entre dos conjuntos donde cada elemento del conjunto dominio tiene asignado exactamente un elemento del conjunto imagen. Explica que el conjunto dominio se refiere al conjunto de partida y el conjunto imagen se refiere al conjunto de llegada. Además, incluye un gráfico de conjuntos para ilustrar la relación entre un conjunto dominio y un conjunto imagen en una función.
Donna Denommee has over 20 years of experience in healthcare, including skilled nursing, home care, assisted living, and hospice care. She has held roles such as supervisor, wellness nurse, LPN charge nurse, unit manager, and administrative assistant. Her experience also includes accounts receivable, collections, purchasing, and administrative support. She has a background in healthcare, business administration, and holds an LPN certification.
Uitnodiging verwendag 9 juli 2016 laat je aanraken door nepalNanny Landman
Kom kijken en laat je aanraken door Nepal. Vind je het leuk om een keer mee te doen met mijn Functioneel Pilatesles? Bewegen zoals bewegen bedoeld is. Bewegen is goed en goed bewegen is beter! Ik zie je graag op zaterdag 9 juli!
This paper proposes methods for distributed learning to select channels for wireless network monitoring using multiple sniffers. It discusses using a single sniffer to select a channel, multiple sniffers that can communicate to coordinate channel selection, and multiple sniffers without communication abilities that select channels independently through active learning.
El documento presenta una lista de 9 temas relacionados con valores como la libertad, el compromiso, la responsabilidad, el aconsejar, la autenticidad, la compasión, la esperanza, la sociabilidad y el celebrar. Cada tema ofrece una breve definición del valor correspondiente describiendo lo que consiste.
El documento describe varios valores cristianos como cuidar la salud, evangelizar, apadrinar niños necesitados, comportarse con santidad, defender la dignidad humana, contemplar obras de arte o la naturaleza, comprender a los demás, ser tolerante con personas de otras culturas y religiones, y tomar conciencia de uno mismo y de los demás.
Dodd-Frank's Impact on Regulatory ReportingHEXANIKA
We previously analyzed how Dodd-Frank and how the new regulations have impacted large banks as well as midsize and small banks. This time, we will look at how the law meant to address one issue (avoid a financial meltdown similar to 2008) might have created other challenges for banks – the most important one that of regulatory reporting:
The Dodd-Frank Wall Street Reform and Consumer
Protection Act was signed into law in 2010 and ushered
in an overhaul of the US financial regulatory system so
sweeping that many of the regulations needed to fully
implement the law are still evolving in 2012. Enacted in
response to a financial crisis described as the “worst since
the Great Depression,” this massive piece of legislation
contains 16 titles, comprises 2,319 pages in its original
form, and calls for regulators from 22 separate federal
agencies to conduct dozens of new studies and create
hundreds of new rules.
This Substance of the Standard was prepared by MHM’s
Professional Standards Group to provide a timely update
of the regulations issued through March 31, 2012 — and
those that are expected in the months to come — so you
can prepare for the challenges that lie ahead.
The document discusses the strategic value of having a Chief Ethics & Compliance Officer (CECO) that is independent from the legal department. It notes that the CECO's role has emerged to address issues where compliance was previously handled by legal or HR. The CECO should report directly to the board rather than legal to avoid conflicts between US and foreign laws. Maintaining independence of the CECO and legal functions is important for companies operating in high-risk regions to manage compliance with anti-bribery, money laundering, and corruption laws.
- The document discusses the strategic value of having a Chief Ethics & Compliance Officer (CECO) who is independent from the General Counsel in order to effectively manage legal and ethical risks across different jurisdictions.
- It argues that the CECO's role should be autonomous and separate from the GC to avoid conflicts of interest that could weaken compliance processes and a company's ability to comply with anti-corruption laws.
- The strategic collaboration between the independent CECO and GC is vital for companies to adequately manage their global operations and facilitate compliance with various US and foreign laws.
A highlight of the various US regulations and standards for Disaster Recovery, Security, and Business Continuity that are in place for companies. This presentation was given to the Contingency Planners of Ohio North region on April 21, 2010.
Increased Risk Reporting Requirements: 5th webinar with ecoDa and AIGFERMA
Our webinar illustrates how risk managers can support their boards in expressing the risk appetite of the organisation and provide input in the ‘annual report’ process. The EU system will be compared to the US approach.
- role of the risk manager as a strategic advisor when it comes to respond to Board questions on transparency requirements (risk reporting, reputation…)
- role of the risk manager about the quality of the reported data about risks, their identification, collection and assessment
A strong disclosure regime that promotes real transparency is a pivotal feature of market-based monitoring of companies and is central to shareholders’ ability to exercise their shareholder rights on an informed basis.
Over the past years, transparency has largely been the leitmotiv for regulators to require additional disclosures that goes beyond the financial and operating results of the company.
Jay Clayton was nominated as SEC chairman and his nomination was approved by the Senate Banking Committee. In his confirmation hearing, he emphasized protecting investors and rooting out fraud. He also said the SEC should consider the economic effects of rules and conduct retrospective reviews. The Trump administration wants to ease some Dodd-Frank rules, and the SEC may provide relief from certain disclosure rules such as those around conflict minerals and pay ratios. Clayton said the SEC should consider whether disclosures provide material information to investors.
The Guide, written by SEC whistleblower experts Lisa J. Banks and Michael A. Filoromo provides a comprehensive and up-to-date explanation of the law and valuable practice tips for SEC whistleblowers and their counsel, and also explains the legal protections that SEC whistleblowers have against retaliation. This ninth edition of the guide includes a breakdown of rulings by the U.S. Court of Appeals and U.S. Department of Labor's Administrative Review Board that rejected appeals efforts in the United States and retaliation protections extraterritorially, and efforts in Congress to reverse SCOTUS' Digital Realty decision. Also, the Guide covers recent whistleblower awards, including the first award to a whistleblower who reported a violation internally, prompting the company to proactively report the issue to the SEC.
This document provides an overview and summary of the SEC Whistleblower Program rules and procedures. Some key points:
- The program was established by the Dodd-Frank Act in 2010 to incentivize whistleblowers to report securities violations to the SEC. Whistleblowers can receive 10-30% of monetary sanctions collected that exceed $1 million.
- To qualify for an award, a whistleblower must voluntarily provide the SEC with original information that leads to a successful enforcement action. Protections are also provided to whistleblowers against retaliation.
- The rules aim to balance incentivizing whistleblowers while also encouraging internal reporting of issues to companies. Recent updates to the rules in 2020 include
This document provides an overview of the key provisions and titles of the Sarbanes-Oxley Act of 2002, which was passed in response to major corporate accounting scandals and failures of corporate governance. It established new or expanded standards for all U.S. public company boards, management, and public accounting firms. The act created the Public Company Accounting Oversight Board to oversee audits of public companies and established new rules regarding auditor independence, corporate responsibility, financial disclosure, analyst conflicts of interest, and criminal penalties for fraud or destruction of records.
The CFPB released an updated version of its Supervision and Examination Manual to reflect changes made to consumer financial regulations and examination procedures. The manual provides guidance for examiners in overseeing companies' compliance with consumer protection laws. Key changes included renumbering regulations to incorporate the CFPB's rulemaking responsibilities as well as updates to procedures for laws on mortgages, credit cards, credit reports, and other topics. The CFPB will use the manual to focus on risks to consumers, apply consistent standards across different types of financial institutions, and coordinate oversight with other regulators.
This document discusses the need for strong corporate governance following the passage of the Sarbanes-Oxley Act of 2002. It summarizes the historical events that led to its passage, including the market crash of 1929 and subsequent legislation in the 1930s. However, it notes that human behavior continued to undermine corporate governance efforts over time. The document emphasizes the importance of understanding human nature and behavior within organizations in order to establish effective internal control frameworks and independent oversight of corporate activities.
This document is a dissertation analyzing the impact of the Dodd-Frank Act on mutual fund performances over a 10-year period from 2002-2011. It begins with an introduction outlining the Dodd-Frank Act and its key provisions, including increased regulation of derivatives, banks, hedge funds, and new oversight bodies. The author then states their aim to examine the relationship between regulation and fund performance before and after the financial crisis. A literature review provides background on factors like leverage, risk management, and the pre-crisis environment. The methodology, results and discussion sections are then outlined in the table of contents. In total, the dissertation analyzes 16 funds and aims to determine the effect of increased regulation on risk and returns.
Digital Assets in United States: All you need to know before the US regulatio...BlockZero
Still a work in progress, the U.S. Framework for digital assets takes another step forward these last weeks! And all you need to know about it is below in our new Thought Leadership signed by Marie-Chantal Leduc, Sabrina McNeil and Rodrigo Urcuyo
WG Consulting & ZE PowerGroup Lunch and Learn: Presenting a Dodd-Frank Softwa...WG Consulting
During a Lunch and Learn held with one of our esteemed Partners, ZE PowerGroup, our panel of experts discussed the challenges corporations find with Dodd-Frank and presented the software that WG Consulting and ZE PowerGroup built as an answer to those challenges.
The Volcker Rule: Its Implications and AftereffectsHEXANIKA
The Volcker Rule is named after Paul A. Volcker, chairman of the Federal Reserve during the 1980s and an elder statesman of the financial world. He acted as an advisor for President Obama in 2008 and was instrumental in the passing and creation of the Rule. It aims to prevent large banks from engaging in speculative trading activity with the idea that important banks support the economy by lending to consumers and businesses. We briefly explain the Volcker Rule, the challenges it brings to banks and how they can be addressed:
The Volcker Rule: Its Implications and Aftereffects
WEA-RFMConference2012-Franasiak
1. 1
DOES THE DODD-FRANK ACT ADDRESS THE PROBLEMS IN THE
FINANCIAL MARKETS?
By DAVID FRANASIAK, REBECCA KONST, and ERIC ROBINS (AUGUST 2012)
The Dodd-Frank Act (“Dodd-Frank”), enacted in the wake of the financial crisis of 2008, aims to
address problems in the markets that government regulators face. During this recent financial crisis,
large financial institutions including, but not limited to, Bear Stearns and American International
Group, Inc. (AIG), required governmental assistance to stem the systemic impact on the markets
from problems generated by their institutions. Though government officials acted to stem the
systemic risks in these cases, others cases such as Lehman Brothers, for which government officials
did not intervene, exposed the risk that some of these large financial institutions posed to the
market. The intent of Dodd-Frank, at least from the point of its sponsors, was to prevent the
occurrence of these sorts of events again.
The financial market events which occurred in 2008 followed by the election of President Barack
Obama and the start of the 110th
Congress in 2009, lead to the House and then the Senate, moving
forward to pass financial reform legislation known as the Dodd-Frank Act in 2010. Signed into law
on July 21, 2010, the Dodd-Frank Act made it through Congress with support mostly from
Democrats. When Republicans gained control of the House in 2011, efforts were undertaken to
modify the law or restrict funding of the regulators who were tasked with implementing the rules
under the Dodd-Frank Act.
More than 2 years after the Dodd-Frank Act became law, only slightly more than one-third of its
rules are in place.1
Despite efforts to move rulemakings forward, many areas of the law are still not
in place and it is unclear when others will be. Still, it is not the inability of regulators to move
forward with these rulemakings or increased Congressional oversight that has hampered this
rulemaking process. There are other issues such as challenges both to: (1) the constitutionality of
key provisions of the Dodd-Frank Act; and (2) the economic cost-benefit analysis that agencies have
undertaken to move forward with their rules. For instance, in July 2011, the D.C. Circuit Court
invalidated the Securities and Exchange Commission (SEC) “proxy access” rule under Dodd-Frank
Act section 971.2
This rule would have authorized the SEC to adopt a rule allowing shareholders
who may nominate directors or officers to a company’s board to have their nominees included in
the company proxy materials sent to all of a company’s shareholders. The D.C. Circuit Court
invalidated this rule, based on the lack of economic support considered by regulators during the
adoption of the rule. Since this decision, the rulemaking process at the SEC slowed, and at least for
this rule SEC Chairman Mary Schapiro decided not to revisit it. 3
Earlier this year, the SEC, bowing
to pressure from Congress in addition to the courts, moved forward with guidance on “Economic
Analysis in SEC Rulemakings.” 4
This guidance seeks to structure the process for SEC rulemakings
1 Dodd-Frank Progress Report, Davis Polk Regulatory Tracker (July 18, 2012), available at
http://www.davispolk.com/files/Publication/15a76992-d82a-4d15-a2db-
fcde9effc3d0/Presentation/PublicationAttachment/b82f9d23-0edc-49eb-af02-
ff97ff34bd56/071812_Dodd.Frank.Progress.Report.pdf.
2 Chamber of Commerce of U.S. and Business Roundtable v. SEC, No. 10-1305 (D.C. Cir. July 22, 2011).
3 Statement by SEC Chairman Mary Schapiro on Proxy Access Litigation (Sept. 6, 2011), available at
http://www.sec.gov/news/press/2011/2011-179.htm.
4 Current Guidance on Economic Analysis in SEC Rulemaking (Mar. 16, 2012), available at
http://www.sec.gov/divisions/riskfin/rsfi_guidance_econ_analy_secrulemaking.pdf.
2. 2
so that appropriate economic analysis is included in the rules from start to finish. While the SEC
has been one of the more high profile regulators under attack for its lack of cost-benefit analysis, the
Commodity Futures Trading Commission (CFTC) has faced similar criticism.5
Once the Dodd-
Frank Act became law, the CFTC moved quickly in proposing rules to meet its statutory deadlines.
But the reality of this process led to problems in that rules were considered in no general order,
which then led to confusion among market participants and the need to correct some rules that had
been earlier proposed. When the CFTC finalized a rule on position limits late last year that would
limit holdings in certain physical commodity futures and swaps,6
trade groups, Securities Industry
and Financial Markets Association (SIFMA) and International Swaps and Derivatives Association
(ISDA), challenged this rule in the D.C. Circuit Court7
based upon the potential costs that the rule
would impose on their industry. Similar to the SEC, the CFTC has indicated that it considered cost-
benefit analysis in its rules and brought in specific staff to handle this analysis.8
Despite efforts to
appease Congress and the D.C. Circuit Court,9
neither of these agencies has a statutory requirement
to consider cost-benefit analysis in their rulemakings.
However, some financial regulators have made efforts to demonstrate that their rulemaking
processes include cost-benefit analysis.10
Notably, one of the agencies created by the Dodd-Frank
Act, the Consumer Financial Protection Bureau (CFPB), has made great efforts to show that it
considers cost-benefit analysis in its rulemakings. 11
CFPB Director Richard Cordray testified before
the House Oversight and Government Reform Committee’s Subcommittee on TARP, Financial
Services, and Bailouts of Public and Private Programs on July 24, 2012 that the CFPB considers
“potential alternative approaches to exercising [ ] discretionary authority,…the benefits and costs of
these alternatives for consumers and providers, including whether what kinds of effects different
alternatives would have on access to consumer financial products and services.”12
Other regulators
5 An Investigation Regarding Cost-Benefit Analyses Performed by the Commodity Futures Trading Commission in
Connection with Rulemakings Undertaken Pursuant to the Dodd-Frank Act, Office of the Inspector General of the
CFTC (April, 25, 2011), available at
http://www.cftc.gov/ucm/groups/public/@aboutcftc/documents/file/oig_investigation_041511.pdf; see also An
Investigation Regarding Cost-Benefit Analyses Performed by the Commodity Futures Trading Commission in
Connection with Rulemakings Undertaken Pursuant to the Dodd-Frank Act, Office of the Inspector General of the
CFTC (June 13, 2011), available at
http://www.cftc.gov/ucm/groups/public/@aboutcftc/documents/file/oig_investigation_061311.pdf.
6 Position Limits for Futures and Swaps, 76 Fed. Reg. 71626 (Nov. 18, 2011) (to be codified at 17 C.F.R. pt. 1, 150 and
151), available at http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2011-28809-1a.pdf.
7 ISDA/SIFMA v. CFTC, No. 11-2146-RLW (D.D.C.) (filed Dec. 2, 2011).
8 Statement by CFTC Chairman Gary Gensler at an Open Meeting to Consider Dodd-Frank Act Rules (May 10, 2012),
available at http://www.cftc.gov/PressRoom/SpeechesTestimony/genslerstatement051012.
9 The D.C. Circuit Court has issued several rulings striking down SEC rules based upon claims of failing to include cost-
benefit analysis considerations. See generally, Chamber of Commerce of U.S. v. S.E.C., 412 F.3d 133 (D.C. Cir. 2005) and 443
F.3d 890 (D.C. Cir. 2006) (Court ruled to vacate provisions of the SEC's mutual fund "governance" rule); American
Equity Investment Life Insurance Company v. S.E.C., 572 F.3d 923 (D.C. Cir. 2009 and 2010 WL 2813600 (D.C. Cir. July 12,
2010) (Court vacated SEC Rule 151A aimed to expand oversight of fixed indexed annuities); and NetCoalition v. S.E.C.,
2010 WL 3063632 D.C. Cir. Aug. 6, 2010) (Court remanded to the SEC its order approving the NYSE Arca ArcaBook
fees rule for failure to adequately explain the basis for the approval).
10 GAO Report to Congress, Dodd-Frank Act Regulations: Implementation could Benefit from Additional Analysis and Coordination
(Nov, 2011), available at http://www.gao.gov/assets/590/586210.pdf (pages 9-12).
11 Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No. 111-203, section 1022, 124 Stat. 1376-
2223 (2010).
12 Written Testimony of CFPB Director Richard Cordray to the House Oversight and Government Reform
Subcommittee on TARP, Financial Services, and Bailouts of Public and Private Programs (July 24, 2012), available at
3. 3
such as the Federal Deposit Insurance Corporation (FDIC) and Financial Stability Oversight
Council (FSOC) have noted efforts at cost-benefit analysis in their rulemakings too. Of course,
there is a challenge to the authority of the CFPB and the FSOC in the D.C. Circuit Court on
grounds that these agencies “violate the Constitution’s separation of powers by creating independent
agencies that are unaccountable because they are not susceptible to constitutional checks and
balances.”13
The effectiveness of the Dodd-Frank Act will not be known until there is another financial disaster.
To at least have an idea as to the effectiveness of Dodd-Frank, it is important to examine features of
the law that were intended to anticipate problematic areas in the markets and separate political and
financial decisions. These include: orderly liquidation authority; Volcker rule; data standardization;
derivatives; and international regulatory impacts.
ORDERLY LIQUIDATION AUTHORITY
This is a framework under Title II of the Dodd-Frank Act that would allow for a resolution of a
financial company and permit the Federal Deposit Insurance Corporation (FDIC) to act as a
receiver of that company. The FDIC has moved forward with a framework to clarify the claims
process and priorities for secured and unsecured creditors and the FDIC and the Federal Reserve
have coordinated a process for the drafting of living wills (which would provide for how an entity
could be resolved).
As with many of the Dodd-Frank Act rulemakings, only some of the rules for orderly liquidation
authority have been finalized.14
Concerns need to be addressed about firms that operate across
jurisdictions with different rules as well as for banks that have become “too big to fail” (TBTF).
Since the financial crisis, many financial institutions have grown in size and some have argued that
regulators have developed a vested interest in preserving such firms because the failure of such a
large firm could lead to a bigger crisis than in 2008. Some House Republicans, such as Spencer
Bachus (R-AL), have argued that Dodd-Frank makes “the problem of ‘too big to fail’ even worse
and taxpayers are more exposed to bailouts than before.”15
Securities law expert and Columbia
University Law School Professor John Coffee asserts in a recent paper on the Dodd-Frank Act that
“regulatory action to liquidate a TBTF institution could never occur quickly because it would require
high coordination and unanimity among regulators.”16
Still, the real test will come when a bank or non-bank needs to be resolved. The problematic
resolution of Lehman Brothers may not serve as a model for orderly resolution. After all, though
the process in the U.S. may have run smoothly, the process overall was disjointed since it took a
http://www.consumerfinance.gov/speeches/written-testimony-of-richard-cordray-before-the-house-oversight-and-
government-reform-subcommittee-on-tarp-financial-services-and-bailouts-of-public-and-private-programs/.
13 State Nat’l Bank of Big Spring v. Geithner, No. 1:12-cv-01032-ESH (D.D.C. filed June 21, 2012), available at
http://cei.org/sites/default/files/SNB%20v%20Geithner%20-%20Complaint.PDF.
14 Certain Orderly Liquidation Authority Provisions under Title II of the Dodd-Frank Act (July 15, 2011), available at
http://www.gpo.gov/fdsys/pkg/FR-2011-07-15/pdf/2011-17397.pdf.
15 Protecting Taxpayers by Ending Bailouts, Statement by Representative Spencer Bachus (R-AL) (May 31, 2012),
available at http://financialservices.house.gov/news/documentsingle.aspx?DocumentID=297809.
16 John C. Coffee Jr., The Political Economy of Dodd-Frank: Why Financial Reform Tends to be Frustrated and Systemic Risk
Perpetuated, Columbia Univ. Sch. Of Law Working Paper No. 414 (Jan. 9. 2012), available at
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1982128.
4. 4
long time to resolve. Lehman Brothers had assets in the U.K. and the U.S., and problems arose
from both jurisdictional complications and the complexity of the U.K. bankruptcy laws. To this day,
unresolved issues relating to outside lawsuits arising from this bankruptcy remain. But suppose that
a TBTF institution is about to fail. The argument all along is that the law allows for the FDIC to
pick winners and losers among the creditors and could decide to favor those with name recognition
or those that offer some political benefit to the party in power. Essentially, the FDIC has the
authority to decide the type of financing available to a bridge company that acquires the institution’s
failed assets. Despite claims that this authority would end TBTF, the FDIC is likely to promote
TBTF as it will have to choose who to support. There is no clear road to resolution under Dodd-
Frank because Congress did not, for Congressional and jurisdictional reasons, “mirror” this to the
well-established bankruptcy laws and specialized courts. Without this connection to the U.S.
Bankruptcy Code, case law and precedent has been lost.17
VOLCKER RULE
This rule, devised by the former Federal Reserve Chairman Paul Volcker, seeks to limit the risk that
financial institutions take on. As proposed, the Volcker rule prohibits a bank or institution that
owns a bank from engaging in proprietary trading that is not at the behest of its clients, and from
owning or investing in a hedge fund or private equity fund, as well as limiting the liabilities that the
largest banks could hold. The Volcker rule has become one of the more contentious rules in the
Dodd-Frank Act. When the rule was to come into effect this past July, many in industry raised
concerns with the ability to meet such statutory requirements and the inability of regulators to define
“proprietary” after the rule was proposed in October 2011. Regulators eventually gave in to the
pressure from Congress and industry and in April 2012 clarified that the effective date of the rule
would be pushed back from July 2012 to July 2014.18
In the end, the Volcker Rule may not be too
effective because of the numerous complexities in the rule’s application, vague definitions, and the
possibility that the exemptions to the rule could overwhelm the rule itself. Furthermore, there is a
lack of evidence that proprietary trading contributed to the failure of any institution during the 2008
financial crisis.19
Though House Financial Services Committee Ranking Member Barney Frank (D-MA)20
called on
regulators to finalize this rule by early September 2012, regulators have indicated that the completion
of this rule could be possible later this year. It appears that whatever the outcome of the rule, it is
likely to be challenged either through a legislative modification or in the courts. Legislation
introduced by Senator Mike Crapo (R-ID), S. 2223, in March 2012, already sought to postpone the
effective date of the Volcker rule.21
House Financial Services Committee Chairman Spencer Bachus
(R-AL), who has raised concerns with this rule, recently solicited from the public “ideas and
suggestions on how to formulate a less burdensome legislative alternative to the Volcker Rule”
setting a deadline of September 7, 2012 so that the Committee could prepare for a hearing on this
17 United States Code Title 11- Bankruptcy.
18 Volcker Rule Conformance Period Clarified (April 19, 2012), available at
http://www.federalreserve.gov/newsevents/press/bcreg/20120419a.htm.
19 See Coffee, supra note 16.
20 Statement of Representative Barney Frank (D-MA) on Volcker Rule Implementation (Mar. 22, 2012), available at
http://democrats.financialservices.house.gov/FinancialSvcsDemMedia/file/BF%20Statements/3_22_2012%20BF%20
Statement%20on%20Volker%20Rule%20Imiplementation.pdf.
21 S. 2223, 112th Cong. §2 (2012), available at http://thomas.loc.gov/home/gpoxmlc112/s2223_is.xml (proposed Mar.
22, 2012).
5. 5
rule.22
Organizations such as SIFMA23
and the U.S. Chamber of Commerce,24
have already voiced
concerns in their comment letters and reports. As in other Dodd-Frank related cases (such as rules
on position limits and proxy access), this could lead to a challenge of the rule in the D.C. Circuit
Court.
DATA STANDARDS
An issue that has dogged regulators’ abilities to address serious financial issues in the markets is the
availability and understanding of data. The lack of a “universal global entity identification system”
has been a problem for decades and the financial crisis exposed the depth of the problem. The fall
of Lehman Brothers in 2008 demonstrated that there was no one “able to view the total extent to
which important market participants were exposed to Lehman and its many legal entities, nor how
market participants were connected to each other in global markets.”25
Senator Jack Reed (D-RI)
cited this as a reason for the Office of Financial Research (OFR) in the Dodd-Frank Act. He stated
that:
“[f]or far too long, those charged with keeping the banking system stable have lacked the data and
analytical power to keep up with complex and constantly evolving financial markets and
products…The OFR gives regulators the tools to evaluate the stability of the entire financial system,
not just individual banks. There will always be risks in the market, but if properly managed and
staffed, this office can help spot where risk is building up in the system and perhaps help deflate them
before they burst on taxpayers.”26
Though the Federal Reserve has traditionally been a leader in this area, and even set up an office
following the enactment of Dodd-Frank focused on monitoring global financial risks and analyzing
the implications of those risks called the “Office of Financial Stability Policy and Research,”27
supporters of Dodd-Frank clamored for a new centralized agency. This new agency is the OFR,
which is located within the Treasury Department. It is a particularly unique agency because it is
independently funded (through assessments on industry), issues its annual reports to Congress
(without approval by the Treasury Department), and requires a Senate-confirmed agency head
(which is still pending).
Internationally, there have been efforts to standardize data through the use of the “Legal Entity
Identifier” (LEI), which “is a unique code to identify legally distinct entities that engage in financial
market activities.” The 2012 OFR annual report noted that “[l]ongstanding issues with incompatible
systems have contributed to delays and errors in risk assessments for both supervisors and industry
22 MJ Lee, Bachus Considering Volcker Alternatives, POLITICO, Aug. 7, 2012, available at
http://www.politico.com/news/stories/0812/79461.html.
23 SIFMA and Oliver Wyman, Study -The Volcker Rule: Considerations for Implementation of Proprietary Trading
Regulations (Dec. 22, 2010), available at http://www.sifma.org/issues/item.aspx?id=22888.
24 Anjan Thakor and John Simon, U.S. Chamber of Commerce Center for Capital Markets Competitiveness, The
Economic Consequences of the Volcker Rule (July 19, 2012), available at http://www.centerforcapitalmarkets.com/wp-
content/uploads/2010/04/17612_CCMC-Volcker-RuleFINAL.pdf.
25 Office of Financial Research 2012 Annual Report (July 2012), available at
http://www.treasury.gov/initiatives/wsr/ofr/Documents/OFR_Annual_Report_071912_Final.pdf (page 118).
26 Senator Jack Reed (D-RI), Statement on Nomination of Richard Berner to Lead New Office of Financial Research
(Dec. 16, 2011), available at http://www.reed.senate.gov/news/release/reed-statement-on-nomination-of-richard-berner-
to-lead-new-office-of-financial-research.
27 Press Release, Federal Reserve Creation of the Office of Financial Stability Policy and Research (Nov. 4. 2010),
available at http://www.federalreserve.gov/newsevents/press/other/20101104a.htm.
6. 6
participants.”28
The OFR worked with the Financial Stability Board (FSB), an international body
that monitors and makes recommendations about the global financial system, on this global initiative
to address the issue. In May 2012, as noted in the 2012 OFR annual report, the International
Organization for Standardization (ISO) published a LEI standard, consisting of a 20-character
alphanumeric code and a minimal set of reference data. In June 2012, the G20 endorsed the FSB’s
recommendations calling for the implementation of a global LEI by mid-2013, consistent with the
ISO standard.29
In the interim, the U.S.’s CFTC established the CFTC Interim Compliant Identifier for reporting, as
a transition to the global LEI. 30
It was finalized in a July 2012 order31
and designates the DTCC-
SWIFT as the provider of the legal entity identifiers (LEI), which will be used by registered entities
and swap counterparties in complying with the CFTC’s swap data reporting regulations. These
identifiers are essential tools for the aggregation of derivatives data. Once the global LEI system is
implemented and operational, the CFTC anticipates that the interim identifier will transition into the
global LEI.32
The OFR cites the need for standardized data so as to allow regulators to understand and properly
oversee markets and to “analyze threats to financial stability.” So far, concerns regarding the ability
of regulators to maintain the confidentiality of the data they collect have been muted. Should there
be an unauthorized release of data, industry could raise concerns as to the safety and security of the
data that regulators collect from them.
DERIVATIVES
Title VII of Dodd-Frank creates a mechanism to deal with the trading of derivatives. The aim was
to make the trading of these instruments more transparent and to reduce risk. Rules under Dodd-
Frank provide for the trading of these instruments through a centralized clearinghouse. But some
critics argue that these rules merely shifted the risk from traders to the clearinghouse and that failure
of such a clearinghouse could cause a systemic event. In order for such a system to work, the
clearinghouse would need to have a degree of control over the market. With the end-user trading
exemption to the rule,33
many firms that use the derivatives markets for ordinary hedging are not
required to trade through clearinghouses and therefore do not need to meet margin or other
requirements. As these firms are a larger part of the market than they disclose, much of the trading
of derivatives could be exempt from this market. This has led some to assert that the legislation and
the lobbying behind these rules created “a strange hybrid that could either reduce or exacerbate
systemic risk.”34
This could then be compounded by “non-standardized swap contracts that cannot
be easily cleared” and that moving complex derivatives into a clearinghouse could increase “the
28 OFR 2012 Annual Report, supra note 25, at 117.
29 G20 Leaders Declaration, Point 44 (June 2012), available at
http://g20.org/images/stories/docs/g20/conclu/G20_Leaders_Declaration_2012_1.pdf
30 Press Release, CFTC Announces Designation of DTCC-SWIFT as the Provider of CFTC Interim Compliant
Identifiers (July 24, 2012), available at http://www.cftc.gov/PressRoom/PressReleases/pr6310-12.
31 CFTC Order Determining the Availability of a Legal Entity Identifier (July 24, 2012), available at
http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/ciciorder.pdf.
32 CFTC Press Release, supra note 30.
33 17 C.F.R. §39.6 (2012) GPO Access, available at http://ecfr.gpoaccess.gov/cgi/t/text/text-
idx?c=ecfr;rgn=div2;view=text;node=20120719%3A1.4;idno=17;sid=6eccbcbbad8223b568e674ad0aa1616f;cc=ecfr;star
t=1;size=25.
34 See Coffee, supra note 16.
7. 7
operational risk for the clearinghouse because it will be required to clear products that it cannot
easily price.”35
However, exchange trading through these clearinghouses could also ensure “that price and other
trade-related information is publicly displayed and is directly available to all market users”36
which in
turn could ensure “efficient price discovery and pricing of assets”37
and encourage those who are
exempt under Dodd-Frank from trading through these clearinghouses (such as end-users) to seek to
clear trades on exchanges and through these clearinghouses. Regulators such as the CFTC have
sought to reduce risks with trading via these clearinghouses, citing the completion of rules
establishing new derivatives clearing organization risk management requirements, as well as rules on
client clearing documentation and risk management.38
INTERNATIONAL REGULATORY IMPACTS
With multiple U.S. financial regulators implementing a variety of Dodd-Frank Act rules, not only are
there coordination concerns among the regulators in the U.S., there are concerns that many of the
rules could conflict with standards followed abroad. Though many of the U.S. regulators have
claimed to be working with their counterparts overseas, it is unclear how conflicts will be resolved.
Some regulators such as CFTC Chairman Gary Gensler have noted the need for strong protections
in rules implemented under the Dodd-Frank Act because of the need to protect U.S. markets from
the so-called less regulated markets abroad.39
It is entirely unclear how issues that arise in foreign
countries (such as the U.K.) that impact the U.S. will be resolved. Recent issues such as with
London Interbank Offered Rate (LIBOR), trading at JP Morgan Chase, problems with the AIG
financial products unit and Standard Chartered, have led to possible division among regulators. It is
unclear in cases such as Standard Chartered where state regulators individually seek to challenge
federal regulators on the international stage, how this could impact relations among national
regulators, particularly at a time where coordination among regulators is necessary to fully
implement financial reform rules. It is also unclear where there are conflicts between regulators in
different countries over a multi-jurisdictional entity where ultimate authority and rule of law lie. For
example, an entity such as AIG is based in the U.S., yet the problems arose from a subsidiary of
AIG located in the U.K., that impacted AIG in the U.S. Other examples include the trading
problems at JP Morgan Chase that were based in the U.K. but again showed up on the bottom line
of JP Morgan Chase in the U.S. Somewhat different are the issues arising from the LIBOR case.
LIBOR is a bank lending rate set primarily by banks mostly in the U.K. but is relied upon as a short
term benchmark by banks and financial institutions worldwide. With alleged falsified rate reporting
by banks in the U.K. that determine the LIBOR, it has been a challenge for U.S. regulators to pursue
this matter.
But with the Dodd-Frank Act itself, there are inherent conflicts with standards agreed to
internationally. Notably the rules concerning the credit rating requirements under the Dodd-Frank
Act conflict with the Basel Capital Standards (“Basel”). While Basel sought to standardize
35 See Coffee, supra note 16.
36 Committee of European Securities Regulators (CESR), Consultation Paper: “Standardisation and exchange trading of
OTC derivatives” (July 19 2010), http://www.esma.europa.eu/system/files/10_610.pdf (pages 17-18).
37
Id.
38 Testimony of CFTC Chairman Gary Gensler before the House Committee on Agriculture (July 25, 2012), available at
http://www.cftc.gov/PressRoom/SpeechesTestimony/opagensler-119.
39 Id.
8. 8
requirements that banks hold capital of certain standards, section 939 of the Dodd-Frank Act called
for alternative standards to determine the creditworthiness of capital held by U.S. institutions. But
as with other Dodd-Frank rulemakings, not all of the U.S. regulators have finalized their rules in this
area. So of course, uncertainty remains.
OTHER MARKET VULNERABILITIES
Despite the aims of Dodd-Frank, there are areas of the market that were not addressed including,
but not limited to: housing; tri-party repos; money market funds; cyber security; and high speed
trading. While there has been discussion about addressing these, most remain areas that the
Financial Stability Oversight Council cited as “ongoing vulnerabilities” in its annual report.40
A repo or repurchase agreement is “a sale of securities by a dealer to an investor, accompanied by a
contract to repurchase the securities for an agreed upon price at a later date.”41
Tri-party repo
transactions “are a type of repurchase agreement involving a third party, the tri-party agent…who
facilitates settlement between dealers (cash borrowers) and investors (cash lenders).”42
The tri-party
agent “maintains custody of the collateral securities, processes payment and delivery between the
dealer and the investor and provides other services, including settlement of cash and securities,
valuation of collateral, and optimization tools to allocate collateral.”43
With the market for tri-party
repos valued at $1.7 trillion,44
FSOC claimed that the market remains “a significant source of
potential contagion” because of: (1) reliance on participants for intraday credit extensions; (2) weak
risk management practices; and (3) a lack of an orderly liquidation mechanism of tri-party repo
collateral of a defaulting dealer.45
The OFR also noted that an understanding of the repo market “is
crucial to assessing the vulnerabilities in the financial system and designing policy tools to mitigate
them.”46
Money market funds, with a U.S. market of $2.56 trillion in assets as of May 2012,47
rely on short
term funding and have been promoted as stable investments. Regulators in the U.S. however point
to the problems with the Reserve Primary Fund in 2008 which “broke the buck” after it was unable
to maintain a stable net asset value (NAV) following a number of redemptions of its shares in light
of the fund’s exposure to Lehman Brothers. Since 2008, rules adopted by the SEC for money
market funds have improved investor protections and during the Eurozone crisis in 2011, there were
little to no problems associated with these funds. Still, regulators, led by SEC Chairman Mary
Schapiro, have cited the need for reforms to these funds because of the potential systemic threat
40 FSOC 2012 Annual Report (July 18, 2012) available at
http://www.treasury.gov/initiatives/fsoc/Documents/2012%20Annual%20Report.pdf (page 133).
41 Karen B. Peetz, Vice Chairman and Chief Executive Officer, Financial Markets and Treasury Services, The Bank of
New York Mellon Before the Subcommittee on Securities, Insurance and Investment Committee on Banking, Housing
and Urban Affairs United States Senate (August 2, 2012), available at
http://banking.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=f3d7bda6-1e10-4a64-83e4-
88390a1daab4.
42 Id.
43 Id.
44 FSOC 2012 Annual Report, supra note 40.
45 FSOC 2012 Annual Report, supra note 40.
46 OFR 2012 Annual Report, supra note 25, at 124.
47 FSOC 2012 Annual Report, supra note 40, at 75.
9. 9
they pose to the taxpayer.48
The FSOC report also notes the concern that money market funds
could be subject to runs if the net asset value exceeds the liquidation value of the fund.49
Housing still remains a major issue. Many point to it as the cause of the financial crisis, as many
financial firms such as Lehman Brothers were highly involved in the securitization market for
mortgages. Yet despite the importance of this issue and the central role that housing played in the
financial crisis, housing market reform was not addressed by Dodd-Frank. Instead, the Obama
Administration addressed housing reform separately through a series of programs that have largely
been unsuccessful. Legislation reforming the regulation of Fannie Mae and Freddie Mac will be a
high priority of Congress in the future. Issues that will have to be addressed include whether
secondary mortgages markets will function efficiently without a government guarantee, preservation
of the thirty year fixed interest rate mortgage, and whether government should incentivize
homeownership as national policy. These issues dovetail with tax reform and banking reform, and
are the successor issues to Dodd Frank.
There are of course other market vulnerabilities, including: (1) cyber security attacks, whether
countries such as Iran will retaliate against sanctions with cyber-attacks on financial institutions; and
(2) potential risks from high speed trading, that are “difficult to assess” under non-normal market
conditions because this type of trading “is opaque and difficult to monitor (particularly in real
time).”50
CONCLUSION
Still, the Dodd-Frank Act and its subsequent rulemaking represent great strides in addressing the
vulnerabilities in the financial system. Even if all of the rules are implemented in accordance with
the law, it would not likely prevent another crisis as there are areas beyond the scope of the law that
need to be addressed. The real issue with Dodd-Frank now is the ability of regulators to implement
rules: (1) without exemptions to the rules overwhelming the rules themselves; and (2) that can
withstand the legislative modifications and/or judicial challenges.
48 Testimony of SEC Chairman Mary Schapiro before the Senate Banking Committee, Perspectives on Money Market Mutual
Funds Reforms (June 21, 2012), available at
http://banking.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=66f4ddb5-4823-4341-bad9-
8f99cdf5fe9a.
49 FSOC 2012 Annual Report, supra note 40, at 132.
50 FSOC 2012 Annual Report, supra note 40, at 136.