FDIC Temporary Liquidity Guarantee Program
|
|
- Alfred Butler
- 8 years ago
- Views:
Transcription
1 FDIC Temporary Liquidity Guarantee Program The FDIC Issues Interim Rule Regarding Temporary Liquidity Guarantee Program SUMMARY On Thursday, October 23, the Federal Deposit Insurance Corporation ( FDIC ) issued an interim rule regarding its Temporary Liquidity Guarantee Program (the TLGP ). The TLGP has two primary components: (i) the Debt Guarantee Program, under which the FDIC will guarantee the payment of certain newly-issued senior unsecured debt, and (ii) the Transaction Account Guarantee Program, under which the FDIC will guarantee certain non-interest bearing transaction accounts. The guarantees provided by both the Debt Guarantee Program and the Transaction Account Guarantee Program are open to all eligible entities, which include: (i) any FDIC-insured depository institution, (ii) any U.S. bank holding company, and (iii) any U.S. savings and loan holding company that engages only in activities that are permissible for financial holding companies to conduct under Section 4(k) of the Bank Holding Company Act 1. A U.S. bank holding company or savings and loan company is defined as one organized under the laws of any State of the United States or the District of Columbia. The FDIC may on a case-bycase basis allow an otherwise ineligible holding company or affiliate of a participating entity to issue guaranteed debt under the Debt Guarantee Program for the benefit of the participating entity. All eligible entities are covered by both the Debt Guarantee Program and the Transaction Account Guarantee Program unless they affirmatively opt out of either or both programs on or before November 12, All eligible entities within a holding company structure must make the same decision regarding continued participation in each component of the program. The interim rule became effective on October 23. Comments on the interim rule are due within 15 days from the date the rule is published in the Federal Register, which is expected to be Wednesday, New York Washington, D.C. Los Angeles Palo Alto London Paris Frankfurt Tokyo Hong Kong Beijing Melbourne Sydney
2 October 29. If the interim rule is published in the Federal Register on October 29, the comment period would end on November 13, after the end of the opt out period. BACKGROUND On October 13, 2008, the Secretary of the Treasury (after consultation with the President) made a systemic risk determination, pursuant to Section 141 of the Federal Deposit Insurance Corporation Improvement Act of 1991, upon receipt of a recommendation by the Board of Directors of the FDIC and the Board of Governors of the Federal Reserve System. Following this determination, the FDIC announced the TLGP. The TLPG includes two initiatives aimed at reducing systemic risk, specifically relating to senior unsecured debt of insured depository institutions and their U.S. holding companies and certain noninterest-bearing transaction accounts at insured depository institutions. The FDIC will cover the costs associated with the TLGP through special fees assessed to participating institutions, as discussed below. The FDIC will impose an emergency special assessment on insured depository institutions if these special fees are insufficient to cover any loss incurred as a result of the program. DEBT GUARANTEE PROGRAM What Is Covered Under the Debt Guarantee Program, the FDIC will guarantee senior unsecured debt issued on or after October 14, 2008 through and including June 30, The maximum amount of debt that eligible entities can issue under the guarantee is 125% of the par value of the entity s senior unsecured debt, excluding debt extended to affiliates, outstanding as of September 30, 2008 and scheduled to mature by June 30, This maximum guaranteed amount is calculated for each individual participating entity within a holding company structure. The maximum amount may be adjusted for eligible entities on a caseby-case basis, including by allowing guarantee coverage to those entities that had no amount of senior unsecured debt outstanding as of September 30, 2008, by the FDIC after consultation with other primary federal regulators as appropriate. The FDIC will provide guarantee coverage until the earlier of the eligible debt s maturity date or June 30, For eligible entities that opt out of the program, the FDIC will guarantee newly-issued senior unsecured debt on or after October 14, 2008 until the earlier of the date of the opt-out or November 12, Senior unsecured debt includes, without limitation, federal funds purchased, promissory notes, commercial paper, unsubordinated unsecured notes, certificates of deposit standing to the credit of a bank, bank deposits in an international banking facility of an insured depository institution, and Eurodollar deposits standing to the credit of a bank. It does not include obligations under guarantees or other contingent liabilities, derivatives or derivative-linked products. Senior unsecured debt may be denominated in a foreign currency. To be eligible, the debt must be evidenced by a written agreement, -2-
3 contain a specified and fixed principal amount to be paid in full on a date certain, non-contingent, and not be subordinated to another liability. Eligible entities in the program are prohibited from issuing non-guaranteed debt until the 125% limit is reached, with the exception of certain long-term issuances described below. Eligible entities may issue non-guaranteed debt once they have reached their 125% limit. The FDIC may on a case-by-case basis allow an otherwise ineligible holding company or affiliate of a participating entity to issue guaranteed debt for the benefit of the participating entity. The FDIC will make this determination after written request and a positive recommendation by the appropriate Federal banking agency. Fees The FDIC will not assess any fees for guarantees provided under the program for the first 30 days, or though November 12, For eligible entities that do not opt out of the program, starting November 13, 2008, all guaranteed debt issued from October 14, 2008 (and still outstanding on November 13, 2008) through June 30, 2009, will be charged an annualized fee equal to 75 basis points multiplied by the amount of debt issued, and calculated for the period until the maturity of that debt or June 12, 2012, whichever is earlier. Participating entities may elect to retain the option of issuing certain long-term issuances of nonguaranteed senior unsecured debt before issuing the maximum amount of guaranteed debt by paying a one-time non-refundable fee by November 12, This non-refundable fee will be calculated as the 75 basis point annual rate charged for six months (or 37.5 basis points) on the amount of senior unsecured debt, excluding debt extended to affiliates, that is outstanding as of September 30, 2008 and scheduled to mature by June 30, Eligible entities that pay this 37.5 basis point fee will be allowed to issue, at any time and without regard to the 125% limit, non-guaranteed senior unsecured debt with a maturity date after June 30, The non-refundable fee will be collected in six equal monthly installments and be credited towards issuances of guaranteed debt under the program. How the Guarantee Works Under the FDIC guarantee, the FDIC s obligation to make payments arises upon the failure of the institution issuing the debt. With respect to FDIC insured depository institutions, the obligation arises when the institution enters into FDIC receivership. The FDIC will follow the well-established receivership claims process and anticipates that most holders, particularly sellers of federal funds, will be paid on the business day after failure. With respect to guaranteed debt issued by holding companies, the FDIC s obligation arises when the company files for bankruptcy protection. Holders of the debt must file a bankruptcy proof of claim within 90 days of the published bar date of the bankruptcy proceeding. The FDIC will make payment to the debt -3-
4 holder for the principal amount of the debt and interest to the date of the filing of the bankruptcy petition and will pay interest at the 90 day T-Bill rate in effect if there is a delay in payment beyond the next business day after the filing of the bankruptcy petition. The FDIC generally will not make payment unless the claim has been allowed against the bankruptcy estate and is not subject to reconsideration under 11 U.S.C. 502(j). The FDIC will be subrogated to the rights of any debt holder it pays under the program. TRANSACTION ACCOUNT GUARANTEE PROGRAM What Is Covered Under the Transaction Account Guarantee Program, the FDIC has provided a temporary full guarantee for funds held at FDIC-insured depository institutions in noninterest-bearing transaction accounts. This coverage became effective on October 14, 2008, and will continue for participating institutions through December 31, For institutions that opt out of the program, the coverage will end on November 12, Under the interim rule, a noninterest-bearing transaction account is defined as a transaction account with respect to which interest is neither accrued nor paid and on which the insured depository institution does not reserve the right to require advance notice of an intended withdrawal. This definition encompasses traditional checking accounts that allow for an unlimited number of deposits and withdrawals at any time. This definition, however, does not encompass negotiable order of withdrawal accounts and money market deposit accounts. The guarantee provided is in addition to and separate from the $250,000 coverage provided under the FDIC s general deposit insurance regulations through December 31, Under the interim rule, the FDIC will treat sweep accounts in accordance with the usual rules and procedures for determining sweep balances at a failed depository institution. Under these procedures, funds may be swept or transferred from a noninterest-bearing transaction account to another type of deposit or nondeposit account. The FDIC will treat the funds as being in the account to which the funds were transferred. The interim rule makes an exception to this treatment of sweep accounts where funds are swept from a noninterest-bearing account to a noninterest-bearing savings account. In that case, the swept funds will be guaranteed under the Transaction Account Guarantee Program. Otherwise, funds swept into an interest-bearing account will only be insured under the FDIC s general insurance regulations. Fees Institutions are not required to pay any assessments for the guarantee provided during the initial 30-day period ending November 12, Beginning on November 13, 2008, institutions that have not opted out of the program will be assessed on a quarterly basis an annualized 10 basis point assessment on -4-
5 balances in noninterest-bearing transaction accounts that exceed the existing general deposit insurance limit of $250,000. The FDIC will collect these assessments at the same time and in the same manner that it collects an institution s general quarterly deposit insurance assessments. How the Guarantee Works The payment and claims process for satisfying claims under the program will follow generally the procedures for other FDIC-insured deposit claims. The FDIC s obligation to make payments arises upon the failure of the participating institution. The FDIC will make the payments under the program as soon as possible after the institution enters into FDIC receivership. The FDIC will be subrogated to the rights of any depositor it pays under the program. * * * ENDNOTES 1 Eligible entities also include savings and loan holding companies with at least one depository institution subsidiary that was the subject of an application pending on October 13, 2008, pursuant to Section 4(c)(8) of the Bank Holding Company Act. Copyright Sullivan & Cromwell LLP
6 ABOUT SULLIVAN & CROMWELL LLP Sullivan & Cromwell LLP is a global law firm that advises on major domestic and cross-border M&A, finance and corporate transactions, significant litigation and corporate investigations, and complex regulatory, tax and estate planning matters. Founded in 1879, Sullivan & Cromwell LLP has more than 700 lawyers on four continents, with four offices in the U.S., including its headquarters in New York, three offices in Europe, two in Australia and three in Asia. CONTACTING SULLIVAN & CROMWELL LLP This publication is provided by Sullivan & Cromwell LLP as a service to clients and colleagues. The information contained in this publication should not be construed as legal advice. Questions regarding the matters discussed in this publication may be directed to any of our lawyers listed below, or to any other Sullivan & Cromwell LLP lawyer with whom you have consulted in the past on similar matters. If you have not received this publication directly from us, you may obtain a copy of any past or future related publications from Jennifer Rish ( ; rishj@sullcrom.com) or Alison Alifano ( ; alifanoa@sullcrom.com) in our New York office. CONTACTS New York H. Rodgin Cohen cohenhr@sullcrom.com Mitchell S. Eitel eitelm@sullcrom.com Michael T. Escue escuem@sullcrom.com Donald J. Toumey toumeyd@sullcrom.com Mark J. Welshimer welshimerm@sullcrom.com Michael M. Wiseman wisemanm@sullcrom.com Washington, D.C. William F. Kroener III kroenerw@sullcrom.com J. Virgil Mattingly mattinglyv@sullcrom.com Samuel R. Woodall III woodalls@sullcrom.com NY12532:
Federal Deposit Insurance Corporation Temporary Liquidity Guarantee Program
Simpson Thacher s Client Memorandum, October 3, 2008 page X c l i e n t m e m o r a n d u m Federal Deposit Insurance Corporation Temporary Liquidity Guarantee Program October 24, 2008 INTRODUCTION On
More informationFEDERAL DEPOSIT INSURANCE CORPORATION S TEMPORARY LIQUIDITY GUARANTEE PROGRAM
I. In General FEDERAL DEPOSIT INSURANCE CORPORATION S TEMPORARY LIQUIDITY GUARANTEE PROGRAM A. Established by an interim rule which became effective on October 23, 2008. 12 C.F.R. Part 370. B. Based on
More informationFDIC Adopts Interim Rule on Temporary Liquidity Guarantee Program
Financial Services Regulatory & Enforcement, Global Financial Markets Initiative update FDIC Adopts Interim Rule on Temporary Liquidity Guarantee Program October 24, 2008 On October 23, 2008, the Federal
More informationTemporary Liquidity Guarantee Program: FDIC Interim Rule
Temporary Liquidity Guarantee Program: October 27, 2008 Table of Contents Overview of the Temporary Liquidity Guarantee Program...3 Core Features of the TLG Program...3 Eligible Entities...4 Opt-out Period...5
More informationIRS Addresses Consequences of Purchasing and Selling Life Insurance Contracts
IRS Addresses Consequences of Purchasing and Selling Life Insurance Contracts Revenue Rulings Provide Guidance to Policyholders Who Surrender or Sell Life Insurance Contracts and to Investors Who Purchase
More informationDeposit Insurance Assessment System
The FDIC Issues a Final Rule Regarding Changes to the Ratios and Ratio Thresholds to Align the With U.S. Basel III Capital Rules On November 18, 2014, the Federal Deposit Insurance Corporation (the FDIC
More informationPartnership Debt-for-Equity Exchanges
IRS Issues Final Regulations on Cancellation of Indebtedness Income and Other Consequences of an Exchange of Partnership Debt for Partnership Equity SUMMARY The Internal Revenue Service (the IRS ) recently
More informationThe FDIC s Temporary Liquidity Guarantee Program An Overview for the Massachusetts Bankers Association
The FDIC s Temporary Liquidity Guarantee Program An Overview for the Massachusetts Bankers Association Kenneth F. Ehrlich Nutter McClennen & Fish LLP World Trade Center West 155 Seaport Boulevard Boston,
More informationReporting Requirements for Foreign Financial Accounts
Reporting Requirements for Foreign Financial Accounts Proposed FinCEN Regulations and IRS Guidance On Foreign Bank and Financial Account Reporting SUMMARY On February 26, the IRS issued Notice 2010-23
More informationIRS Issues Audit Directive on Worthless Debt Deductions for Banks and Bank Affiliates
October 29, 2014 IRS Issues Audit Directive on Worthless Debt Deductions for Banks and Bank Affiliates LBI Directs Its Auditors Not to Challenge Certain Worthless Debt Deductions SUMMARY The Large Business
More informationNew York State Tax Developments
New York State Executive Budget Proposal Would Make Important Changes to Tax Laws Affecting Individuals and Trusts SUMMARY On January 19, 2010, New York State Governor David A. Paterson released his executive
More informationChanges to New York Power of Attorney Law
New York Amends Power of Attorney Law Retroactively SUMMARY The New York Legislature has now passed, and the Governor has signed, amendments to the New York Power of Attorney Law, Sections 5-1501 5-1514
More informationCFTC Chairman Seeks Additional Authority for CFTC
CFTC Chairman Seeks Additional Authority for CFTC Chairman Gensler Requests Clarifying Language for CFTC Regulatory Authority Under the Over-the-Counter Derivatives Markets Act of 2009 SUMMARY In response
More informationWhistleblower Provisions
SEC Issues Final Rules Implementing the Dodd-Frank Whistleblower Provisions SUMMARY On May 25, 2011, the Securities and Exchange Commission voted 3 to 2 to approve the final rules implementing the whistleblower
More informationIRS Offshore Voluntary Disclosure Program
IRS Launches Third Offshore Voluntary Disclosure Program SUMMARY On January 9, 2012, the Internal Revenue Service (the IRS ) issued a news release announcing that the IRS is opening a third Offshore Voluntary
More informationTemporary Liquidity Guarantee Program: FDIC Final Rule
Temporary Liquidity Guarantee Program: November 26, 2008 Table of Contents Overview of the Temporary Liquidity Guarantee Program...2 Core Features of the TLG Program...2 Election and Opt-out Period...4
More informationBank Levies in the UK, France and Germany
Bank Levies in the UK, France and Germany A Comparison of the New Levies on Banks SUMMARY The United Kingdom, France and Germany have all recently finalised, or are in the process of finalising, details
More informationNew York Employment Law Update
Recent Legislative Developments in New York State Regarding Reductions in Force and Criminal Conviction Records SUMMARY A number of new New York State statutes of significance to employers will soon become
More informationNew York Court of Appeals Announces New Rules Governing Practice in New York by Attorneys Not Admitted in the State
New York Court of Appeals Announces New Rules Governing Practice in New York by Attorneys Not Provisions Permit Temporary Practice by Non-New York Attorneys and Registration of Non-U.S. Lawyers as In-House
More informationFBAR Reporting Requirements for Foreign Financial Accounts
FBAR Reporting Requirements for Foreign Financial Accounts FinCEN Releases Notice of Proposed Rulemaking to Revise Certain Provisions of the FBAR Regulations SUMMARY The Financial Crimes Enforcement Network
More informationNYSE Amends Rule on Material News Notification and Trading Halts
NYSE Amends Rule on Material News Notification and Trading Halts NYSE Extends the Pre-Market Notification Period During Which Listed Companies Are Required to Notify the NYSE Prior to Disseminating Material
More informationChanges to New York Power of Attorney Law
Changes to New York Power of Attorney Law New York Imposes New Requirements on All Powers of Attorney Executed in New York by Individuals Effective September 1, 2009 SUMMARY Effective September 1, 2009,
More informationIssuing FDIC-Guaranteed Senior Debt Under the Debt Guarantee Program: A Practical Guide
Corporate & Securities February 27, 2009 Issuing FDIC-Guaranteed Senior Debt Under the Debt Guarantee Program: A Practical Guide by Rodney R. Peck, Patricia F. Young and Nathan D. Cardozo Under the FDIC
More informationRegistered Adviser Custody Rules
SEC Adopts Final Rules and Issues Guidance to Safeguard the Custody of Client Assets by Investment Advisers SUMMARY The SEC has adopted and published amendments to Rule 206(4)-2 under the Investment Advisers
More informationDeductibility of Fiduciary Expenses
IRS Publishes Final Regulations on Deductibility of Fiduciary Expenses Incurred by Estates and Trusts SUMMARY On May 8, 2014, the Treasury Department and the Internal Revenue Service ( IRS ) adopted final
More informationAspects, Analysis Of Debt Guarantees By The FDIC
Portfolio Media, Inc. 648 Broadway, Suite 200 New York, NY 10012 www.law360.com Phone: +1 212 537 6331 Fax: +1 212 537 6371 customerservice@portfoliomedia.com Aspects, Analysis Of Debt Guarantees By The
More informationBank Mergers & Acquisitions
Federal Reserve Details New Financial Stability Analysis in Approving PNC s Acquisition of RBC Bank (USA) SUMMARY A recent acquisition approval order of the Board of Governors of the Federal Reserve System
More informationNew York State Labor Law Amendments Affecting Proof in Pay Discrimination Cases and Employer Policies Concerning Wage Disclosure
New York State Labor Law Amendments Affecting Proof in Pay Discrimination Cases and Employer Policies Concerning Wage Disclosure Amendments Alter Burden of Proof in Gender-Based Pay Cases and Bar Employer
More informationHong Kong Enacts a Statutory Disclosure Regime
Statutory Obligation for Hong Kong-Listed Corporations to Disclose Price Sensitive Information Becoming Effective on January 1, 2013 SUMMARY With effect from January 1, 2013, Hong Kong will implement a
More informationDue Diligence in Regulation D Offerings
FINRA Provides Guidance on the Obligation of Broker-Dealers to Conduct Reasonable Investigations in Regulation D Offerings SUMMARY FINRA has published a regulatory notice providing guidance to broker-dealers
More informationTemporary Liquidity Guarantee Program Public Comment Diana Danin 20637 Netherland St Orlando, Fl 32833 407-927-0352 jeladi@cfl.rr.
Temporary Liquidity Guarantee Program Public Comment Diana Danin 20637 Netherland St Orlando, Fl 32833 407-927-0352 jeladi@cfl.rr.com In this word document, I've taken sections of the proposed regulation
More informationNew York City Council Passes Bill Banning Use of Credit Checks in Employment Decisions
New York City Council Passes Bill Banning Use of Credit Checks in Employment Decisions Amendment to the New York City Human Rights Law Makes It an Unlawful Discriminatory Practice for Most Employers to
More informationFrench 50% Withholding Tax on Interest Paid in Tax Havens
French 50% Withholding Tax on Interest Paid in Tax Havens Administrative Guidelines Provide for Safe Harbors under Which Interest Paid with Respect to Certain Notes Would Be Exempt SUMMARY Interest paid
More informationThe FTT will be due irrespective of whether the acquisition is carried out by a company or an individual.
French Parliament Adopts Proposed Legislation on Financial Transaction Tax with Few Amendments SUMMARY Draft legislation to introduce a financial transaction tax (the FTT ) in France was presented by the
More informationIssuing FDIC-Guaranteed Debt under the TLGP
Issuing FDIC-Guaranteed Debt under the TLGP New York November 25, 2008 Background The FDIC Guarantee applies to all Senior Unsecured Debt identified as guaranteed by the FDIC and issued by an Eligible
More informationCourt Addresses (Again!) Employee Stock Option Expenses for Transfer Pricing Purposes
Court Addresses (Again!) Employee Stock Option Expenses for Transfer Pricing Purposes Ninth Circuit Reverses Itself and Holds that the Arm s-length Standard Controls in Determining if Employee Stock Option
More informationBasel Intraday Liquidity Framework
Basel Committee Publishes Final Document on Monitoring Tools for Intraday Liquidity Management SUMMARY The Basel Committee on Banking Supervision (the Basel Committee ), in consultation with the Committee
More informationHouse Financial Services Draft OTC Derivatives Legislative Proposal
House Financial Services Draft OTC Derivatives Legislative Proposal House Financial Services Chairman Barney Frank Releases Discussion Draft of the Over-the-Counter Derivatives Markets Act of 2009, on
More informationSection 4371 Excise Tax on Insurance and Reinsurance Contracts
Section 4371 Excise Tax on Insurance and Reinsurance Contracts D.C. Circuit Holds that Federal Excise Tax Does Not Apply to Wholly Foreign Retrocession Agreements SUMMARY On May 26, 2015, in Validus Reinsurance,
More informationCriminal Defense and Investigations
Fraud Enforcement and Recovery Act of 2009 SUMMARY On May 20, 2009, President Obama signed into law the Fraud Enforcement and Recovery Act of 2009 ( FERA ), a statute intended to strengthen the federal
More informationBroker-Dealer Audit and Reporting Updates
PCAOB Report and New SEC Rules Address Audit, Financial Reporting, Internal Control and Risk Management Issues Relating to Broker-Dealers These Developments May Be Relevant for Audit Committees of Public
More informationPartnership Tax Audits
New Audit Regime Allows IRS to Assess and Collect Tax at the Partnership Level SUMMARY The Bipartisan Budget Act of 2015 (the Budget Act) replaces the current partnership audit procedures with a very different
More informationDECEMber 2008 JONES DAY COMMENTARY
DECEMber 2008 JONES DAY COMMENTARY The FDIC Temporary Liquidity Guarantee Program: FDIC Final Rule Makes Program More Useful But Requires Quick Decisions The FDIC announced its Temporar y Liquidity Guarantee
More informationCurrent Market Conditions Create Opportunities for Estate Planning Strategies
Current Market Conditions Create Opportunities for Strategies SUMMARY The recent decline in stock prices and today s low interest rates for intra-family loans present a unique opportunity to transfer wealth
More informationInternal Revenue Service Issues Regulations Affecting REIT Conversions and Spinoffs
Internal Revenue Service Issues Regulations Affecting REIT Conversions and Spinoffs IRS and Treasury Issue Regulations to Extend the Period During Which a REIT Is Subject to Corporate Tax on Built-in Gains
More informationDepartment of Labor Proposes New Overtime Regulations
Department of Labor Proposes New Overtime Regulations DOL Proposes Substantially Raising Salary Thresholds Used in Determining Who Is Exempt from Overtime Pay and Requests Comments on Potential Changes
More informationCourt Addresses Employee Stock Option Expenses for Transfer Pricing Purposes
Court Addresses Employee Stock Option Expenses for Transfer Pricing Purposes Ninth Circuit Overturns Tax Court and Holds That Expenses Attributable to Employee Stock Options Are Costs of Developing Intangibles
More informationSummary of Deposit Insurance Regulations; Unlimited Coverage for Noninterest-bearing Transaction Accounts (12 CFR Part 330) FINAL RULE
Summary of Deposit Insurance Regulations; Unlimited Coverage for Noninterest-bearing Transaction Accounts (12 CFR Part 330) FINAL RULE FDIC is adopting a final rule amending deposit insurance regulations
More informationSupreme Court Clarifies Statute of Limitations Applicable to False Claims Act Whistleblower Suits Against Government Contractors
Supreme Court Clarifies Statute of Limitations Applicable to False Claims Act Whistleblower Suits Against Government Contractors In Kellogg Brown & Root Services, Inc., et al. v. United States ex rel.
More informationDodd-Frank Stress Tests
Federal Banking Agencies Propose Company-Run Stress Test Data Reporting Templates and Related Documentation for Financial Institutions with Over $10 Billion but Less Than $50 Billion in Assets SUMMARY
More informationTax Court Addresses Implied Waiver of the Attorney-Client Privilege
Tax Court Addresses Implied Waiver of the Attorney-Client Privilege The Tax Court Holds That Raising Good-Faith and State-of-Mind Defenses to Accuracy-Related Penalties Could Result in an Implied Waiver
More informationCorporate Governance of Delaware Corporations
Corporate Governance of Delaware Corporations Delaware Adopts Amendments to the Delaware General Corporation Law Relating to Corporate Governance SUMMARY The Delaware legislature has enacted a number of
More informationSupreme Court Decision Affirming Judicial Right to Review EEOC Actions
Supreme Court Decision Affirming Judicial Right to Review EEOC Actions The Supreme Court Holds That EEOC s Conciliation Efforts Are Subject to Judicial Review, Albeit Narrow SUMMARY A unanimous Supreme
More informationIRS Issues Final and New Proposed Regulations Implementing the 3.8% Tax on Investment Income
IRS Issues Final and New Proposed Regulations Implementing the 3.8% Tax on Investment Income Final Regulations and New Proposed Regulations Implement the 3.8% Tax on Net Investment Income of Individuals,
More informationGerman Merger Control
German Federal Cartel Office Publishes Draft Guidelines on Jurisdiction for Merger Review SUMMARY On 5 December 2013, the German Federal Cartel Office (Bundeskartellamt) published new draft guidelines
More informationNew York State and City Tax Law Changes
2010-2011 New York State Budget Is Enacted Four Months Late Imposes Tax Increases on Individuals and Corporations SUMMARY The 2010-2011 New York State Budget (the Budget ) was enacted on August 4, 2010,
More informationPrivate Securities Fraud Claims Under Section 10(b) Based on False or Misleading Statements
Private Securities Fraud Claims Under Section 10(b) Based on False or Misleading Statements U.S. Supreme Court Holds that Private Actions May Be Brought Only Against Parties With Ultimate Authority Over
More informationEqual Employment Opportunity Commission v. Abercrombie & Fitch Stores, Inc.: Religious Accommodation in the Workplace
Equal Employment Opportunity Commission v. Abercrombie & Fitch Stores, Inc.: Supreme Court Clarifies that an Employer Can Be Liable for Failing To Accommodate a Religious Practice that the Employer Suspects,
More informationEU State Aid and Tax Law
European Court finds that Spanish tax rules were not unlawful state aid because they did not give a selective advantage SUMMARY In two recent cases on fiscal state aid, the General Court of the European
More informationRecent Developments Regarding Entity Classification for UK Tax Purposes
Recent Developments Regarding Entity Classification for UK Tax Purposes Anson v. HMRC is a Delaware LLC tax-transparent? SUMMARY The question as to whether a non-uk entity such as a Delaware limited liability
More informationFINANCIAL INSTITUTIONS REGULATORY UPDATE
OCTOBER 19, 2009 FINANCIAL INSTITUTIONS REGULATORY UPDATE The Financial Institutions Regulatory Practice Group of Sidley Austin LLP The Financial Institutions Regulatory Practice group offers counseling,
More informationFiscal Response to the Financial Crisis - Overview of Important Accounting Concepts
U.S. Accounting for the Fiscal Response to the Financial Crisis 2 Principal Entities Involved in Fiscal Response Department of the Treasury FASAB standards (The Federal Accounting Standards Advisory Board)
More informationDevelopments in Deposit Insurance & Investment Protection for Municipalities
Developments in Deposit Insurance & Investment Protection for Municipalities Establishment of Federal Deposit Insurance Program Following the stock market crash on October 29, 1929 and ensuing series of
More informationInformation as of 10/19/08. FDIC Temporary Liquidity Guarantee Program What is It and What Does It Mean to Community Banks?
Information as of 10/19/08 FDIC Temporary Liquidity Guarantee Program What is It and What Does It Mean to Community Banks? Introduction The Liquidity Guarantee Program The FDIC has created a temporary
More informationFDIC Liquidity Management. Tony Olbrich Regional President U.S. Bank
FDIC Liquidity Management Tony Olbrich Regional President U.S. Bank 0 Commercial Banks Checking and savings deposit accounts Consumer loans Business & Commercial Loans Payment Services Trust or fiduciary
More informationAsset-Backed Securities and Companies in Mortgage-Related Businesses under the Investment Company Act
Asset-Backed Securities and Companies in Mortgage-Related Businesses under the Investment SEC Issues Advance Notice of Proposed Rulemaking to Amend Rule 3a-7 under the Investment and Concept Release on
More informationSarbanes-Oxley Whistleblower Provision
U.S. Supreme Court Significantly Expands Sarbanes-Oxley Whistleblower Provision to Include Employees of Non-Public Contractors and Subcontractors of Public Companies SUMMARY In Lawson v. FMR LLC, No. 12-3
More informationABA Staff Analysis: Signage and Disclosure of FDIC Coverage for 2011
ABA Staff Analysis: Signage and Disclosure of FDIC Coverage for 2011 Changes made January 18-31, 2011 are in blue font. An FDIC FAQ on these issues is posted to www.fdic.gov/regulations/resources/tlgp/faq.html.
More informationPerez v. Mortgage Bankers Association
Supreme Court Holds that Agencies Can Amend or Repeal Interpretive Rules Without Notice-and-Comment Procedures SUMMARY The U.S. Supreme Court yesterday held that agencies are not required to follow notice-and-comment
More informationCERTIFICATE OF DEPOSIT DISCLOSURE STATEMENT April 2014
The information contained in this Disclosure Statement may not be modified by any oral representation made prior or subsequent to the purchase of your Certificate of Deposit. CERTIFICATE OF DEPOSIT DISCLOSURE
More informationGoldman Sachs Bank USA Certificates of Deposit
Goldman Sachs Bank USA Certificates of Deposit TERMS OF SALE The following terms may apply to the Certificates of Deposit (which we refer to as the CDs in this disclosure statement) that Goldman Sachs
More informationNew General Counsel s Opinion No. 8 The FDIC Provides Clarity on Deposit Insurance and Assessments on Funds Underlying Stored Value Cards
November 2008 New General Counsel s Opinion No. 8 The FDIC Provides Clarity on Deposit Insurance and Assessments on Funds Underlying Stored Value Cards BY JOHN DOUGLAS, CHRIS DANIEL AND HELEN LEE I. Introduction
More informationDeposit Insurance Regulations; Unlimited Coverage for Noninterest-bearing. AGENCY: Federal Deposit Insurance Corporation (FDIC)
Draft (9-13-10) FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 330 RIN (insert) Deposit Insurance Regulations; Unlimited Coverage for Noninterest-bearing Transaction Accounts AGENCY: Federal Deposit
More informationFDIC INSURANCE DODD-FRANK WORLD CATHERINE LIVINGSTON DIRECTOR FIS REGULATORY ADVISORY SERVICES IN A
FDIC INSURANCE IN A DODD-FRANK WORLD BY CATHERINE LIVINGSTON DIRECTOR FIS REGULATORY ADVISORY SERVICES FDIC Insurance in a Dodd Frank World Catherine Livingston, Director Introduction Change = Confusion
More informationUBS Financial Services Inc. Deposit Account Sweep Program Disclosure Statement
UBS Financial Services Inc. Deposit Account Sweep Program Disclosure Statement On or about October 28, 2011, the UBS Deposit Account Sweep Program minimum cap amounts will be increased to $250,000/$500,000
More informationFLEXINSURED ACCOUNT DISCLOSURE STATEMENT
FLEXINSURED ACCOUNT DISCLOSURE STATEMENT Cetera Investment Services is pleased to make available to its clients the option of sweeping their available cash balances into one or more financial institutions
More informationDodd-Frank Whistleblower Provision
Second Circuit, Disagreeing with Fifth Circuit, Defers to SEC s Interpretation of Dodd-Frank Whistleblower Definition and Holds That Internal Whistleblowers Are Entitled to Pursue Dodd-Frank Retaliation
More informationHow To Get A Program Deposit From Fidelity
FDIC-Insured Deposit Sweep Program Disclosure For Fidelity Individual Retirement Accounts (IRAs) and Fidelity Health Savings Accounts (HSAs) Summary This document provides important information about the
More informationInformation Disclosure on the Securities Market
3 Legal Update Banking & Finance Construction & Engineering Corporate & Securities Vietnam 06 July 2012 Information Disclosure on the Securities Market Summary On 5 April 2012, the Ministry of Finance
More informationZIONS DIRECT. How the Program Works
ZIONS DIRECT ZIONS DIRECT, INC. (also referred to as Broker/Dealer, Zions Direct, we, our or us ) PROPRIETARY BANK DEPOSIT SWEEP PROGRAM (BDSP SM ) DISCLOSURE DOCUMENT This section highlights certain key
More informationRegistration Process for Security-Based Swap Entities
Registration Process for Security-Based Swap Entities SEC Proposes Rules on Registration of Security-Based Swap Dealers and Major Security-Based Swap Participants SUMMARY On October 12, 2011, the SEC proposed
More informationClient Alert. New Treasury Regulations Make it Easier to Issue Tack-On Bonds or Loans. But New FATCA Regulations Add Complexity.
Number 1417 October 6, 2015 Client Alert Latham & Watkins Corporate & Tax Departments New Treasury Regulations Make it Easier to Issue Tack-On Bonds or Loans But New FATCA Regulations Add Complexity The
More informationUBS Deposit Account Sweep Program Disclosure Statement
UBS Deposit Account Sweep Program Disclosure Statement Contents Summary 3 How the Program Works 4 Eligibility 4 Deposit Procedures 4 Withdrawal Procedures 4 Sweep Limit or Cap Election 4 Interest Rates
More informationDue to the New Year s holiday, the State Treasurer s Office, Fed wire service, and Oregon banks will be
LOCAL GOVERNMENT NEWS REPORT December 2008 INTEREST RATES The average annualized yield for November was 2.4267%. The rates for November were as follows: November 1 st 13 th 2.50% November 14 th 25 th 2.40%
More informationChinese Affiliates of Big Four Accounting Firms Ordered Barred from Practicing Before the SEC for Six Months; Suspension Stayed Pending Appeal
Chinese Affiliates of Big Four Accounting Firms Ordered Barred from Practicing Before the SEC for Six Months; Suspension Stayed Pending Appeal Administrative Law Judge Finds that the Firms Willfully Refused
More informationFederal Reserve Issues Regulations for Savings and Loan Holding Companies
Federal Reserve Issues Regulations for Savings and Loan Holding Companies August 19, 2011 Pursuant to Section 312 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act ),
More informationFSOC Proposes Rules for Board of Governors of the Federal Reserve s Supervision of Nonbank Financial Companies. October 20, 2011
FSOC Proposes Rules for Board of Governors of the Federal Reserve s Supervision of Nonbank Financial Companies October 20, 2011 On October 11, the Financial Stability Oversight Council (the Council) released
More informationFidelity Cash Management Account FDIC-Insured Deposit Sweep Program Disclosure
Fidelity Cash Management Account FDIC-Insured Deposit Sweep Program Disclosure Summary This document provides important information about the FDIC-Insured Deposit Sweep Program offered in connection with
More informationTHE ADVANTAGE BANK DEPOSIT PROGRAM Protection for Your Short-Term Investments
THE ADVANTAGE BANK DEPOSIT PROGRAM Protection for Your Short-Term Investments ADVANTAGE BANK DEPOSIT PROGRAM PRODUCT SUMMARY This product summary of the FDIC-insured Advantage Bank Deposit ( ABD ) Program,
More informationFinancial Services Alert
April 2008 Authors: Robert T. Honeywell 212.536.4863 robert.honeywell@klgates.com Anthony R. G. Nolan 212.536.4843 anthony.nolan@klgates.com Donald W. Smith 202.778.9079 donald.smith@klgates.com Robert
More informationReport of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks FFIEC 002
Federal Financial Institutions Examination Council Board of Governors of the Federal Reserve System OMB Number: 7100-0032 Federal Deposit Insurance Corporation Office of the Comptroller of the Currency
More informationDEPOSITORIES OF PUBLIC FUNDS AND PUBLIC INVESTMENTS
DEPOSITORIES OF PUBLIC FUNDS AND PUBLIC INVESTMENTS LEGAL COMPLIANCE MANUAL DEPOSITORIES OF PUBLIC FUNDS AND PUBLIC INVESTMENTS Introduction A government entity that receives and disburses funds may deposit
More informationInsured Bank Deposits TM Program Information Statement
Insured Bank Deposits TM Program Information Statement This document contains important information about the Insured Bank Deposits program ( IBD ) offered through Wayne Hummer Investments, LLC ( Wayne
More informationP. O. BOX 19999, RALEIGH, NC 27619-9916 / 800/662-7044 / FAX: 919/881-9909. Regulatory Review
FINAL RULE P. O. BOX 19999, RALEIGH, NC 27619-9916 / 800/662-7044 / FAX: 919/881-9909 Regulatory Review RR 2010-11 OCTOBER 14, 2010 ***************IN THIS ISSUE*************** Revisions to Rules Implementing
More informationBANKING IN WASHINGTON
Chapter 7 BANKING IN WASHINGTON Richard L. Goldfarb 1 and Jerry C. Chiang 2 7.1 OPERATING AN ALIEN BANK IN WASHINGTON 7.1.1 The Alien Bank Act Banks organized under the laws of a foreign country are called
More informationCash Sweep Program Disclosure Statement
Cash Sweep Program Disclosure Statement Summary Please consult the full text of the disclosure statement below for further information at the pages indicated. How the Cash Sweep Program Works The Cash
More informationFINAL REGULATIONS RELATING TO OPTIONS GRANTED UNDER EMPLOYEE STOCK PURCHASE PLANS
IRS Issues Final Regulations Relating to Employee Stock Purchase Plans and the Reporting Requirements for Employee Stock Purchase Plans and Incentive Stock Options February 17, 2010 EXECUTIVE SUMMARY In
More informationDreyfus Insured Deposit Program. Disclosure Statement and Terms and Conditions for the Single Rate Program
Dreyfus Insured Deposit Program Disclosure Statement and Terms and Conditions for the Single Rate Program Dreyfus Insured Deposit Program Disclosure Statement and Terms and Conditions I. Introduction Pershing
More informationi T-bill (dy) = $10,000 - $9,765 360 = 6.768% $10,000 125
Answers to Chapter 5 Questions 1. First, money market instruments are generally sold in large denominations (often in units of $1 million to $10 million). Most money market participants want or need to
More informationDeliverable Obligation Characteristics for North American Corporate Transaction Type
ISDA International Swaps and Derivatives Association, Inc. 360 Madison Avenue, 16th Floor New York, NY 10017 United States of America Telephone: 1 (212) 901-6000 Facsimile: 1 (212) 901-6001 email: isda@isda.org
More information