TOPICS IN THIS ISSUE
• Federal Issues
• Firm News
• E-Financial Services
• Criminal Enforcement Action
Federal Reserve Board Proposes Repeal of Regulation Q. On April 6, the Federal Reserve Board (Board) requested comment on a proposed rule to repeal the Board’s Regulation Q, which prohibits banks from paying interest on demand deposits. The repeal, which is mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, would become effective on July 21, 2011 and would allow financial institutions to begin offering interest-bearing checking accounts. The Board specifically seeks comments regarding the effect of the repeal on bank balance sheets and income, the impact on short term funding markets, the expected demand for interest-bearing checking accounts, and the potential competitive burden on smaller depository institutions. For a copy of the Federal Reserve Board’s press release, see http://www.federalreserve.gov/newsevents/press/bcreg/20110406a.htm.
D.C. Circuit Dissolves Temporary Administrative Stay and Denies Motion to Stay Implementation of Loan Originator Compensation Rule Pending Appeal. On April 5, the United States Court of Appeals for the District of Columbia dissolved its March 31, 2011 administrative stay of the Federal Reserve Board’s Loan Originator Compensation rule. In general, that rule prohibits compensation of a mortgage loan originator based on any loan terms other than amount, and payment of any compensation where the originator is paid by the borrower.
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