Financial Services Legislative And Regulatory Update -- May 21, 2012


In This Issue:

Leading The Past Week; Legislative Branch; House of Representatives; Executive Branch; OCC; CFTC; SEC; FHFA; and Upcoming Hearings.

Excerpt from Leading The Past Week

The news last week was clearly dominated by JP Morgan?s trading loss. However, while we anticipate that the bank will be in the forefront of the news for a few more weeks, it seems that any substantive impacts from the event will come from the Administration and not from Congress. Even though the Senate Banking Committee announced a hearing schedule where Jamie Dimon will be forced to testify, and that the political environment is so toxic that the House Agriculture Committee called off a hearing that would have modified Dodd-Frank regulations on swaps, it is unlikely that there will be any real legislative based changes to Dodd-Frank in response to JP Morgan?s trading loss, as even in the midst of the news cycle, House Financial Services Committee Chairman Spencer Bachus (R-AL) noted that the $2 billion loss represents approximately 1 percent of its total net worth of the bank and only “one month” worth of earning —signaling the company will not be affected in the long-run. Conversely, the Administration appears to have much greater leverage against the bank, and politically the White House, despite the President?s initial kind words about Jamie Dimon, have to be calculating the political value of coming down hard on the bank. With that in mind, it was not surprising to see that the Justice Department and the SEC have separately launched investigations into the bank?s trades, and that Treasury Secretary Tim Geithner suggested JP Morgan CEO Jamie Dimon step down from the New York Fed.

Please see full issue below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Mintz Levin - Public Finance Matters | Attorney Advertising

Written by:


Mintz Levin - Public Finance Matters on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.