InfoBytes, January 13, 2012 - A Weekly In-depth review of news & developments in the financial services industry.


Topics In This Issue

• Federal Issues

• State Issues

• Courts

• Miscellany

• Firm News

• Firm Publications

• Mortgages

• Banking

• Litigation

• Privacy/Data Security

• Criminal Enforcement Action

An excerpt from Federal Issues:

Federal Reserve Issues Final Notice on SLHC's Filing of Regulatory Reports. On December 23, the Federal Reserve Board (FRB) issued a final notice exempting a limited number of commercial and insurance savings and loan holding companies (SLHCs) from regulatory reporting and instituting a 2-year phase-in period for the remaining SLHCs. Following a transfer of supervisory and rulemaking authority from the Office of Thrift Supervision (OTS) under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the FRB finalized the reporting requirements of SLHCs after considering comments from earlier this year. Pursuant to the final notice, a limited number of SLHCs are exempted from regulatory reporting using the Board's existing regulatory reports and there is a two-year phase-in period for regulatory reporting for all other SLHCs. Exempt SLHCs will continue to submit (i) the Schedule HC, which is currently a part of the Thrift Financial Report, (ii) the OTS H-(b)11 Annual/Current Report, and (iii) the Federal Reserve's FR Y-6, Annual Report for Bank Holding Companies, or the FR Y-7, Annual Report for Foreign Banking Organizations. Click here for a copy of the press release. Click here for a copy of the final notice.

Massachusetts Senator Calls for Renewed Criminal Investigation of Fannie and Freddie. On December 22, in reference to a recent civil lawsuit against six former Fannie Mae and Freddie Mac executives, Senator Scott Brown expressed concern that the lawsuit "does not go nearly far enough to achieve justice" and called for a criminal investigation into the two mortgage enterprises. Writing to Attorney General Eric Holder and Chairman Mary Shapiro of the Securities and Exchange Commission (SEC), Brown insists that the Department of Justice and the SEC have been "too timid" in pursuing criminal cases against government-sponsored enterprises such as Fannie and Freddie. In particular, Brown attributes a $150 billion taxpayer loss to the two entities, while asserting that both companies hid their risk exposure to subprime and other allegedly risky loans. Despite these purported activities, Brown observes, there have been no criminal convictions related to either company since 2003. "Fannie Mae and Freddie Mac were among those institutions at the very center of the crisis," he argues. "Now is not the time to give up in the pursuit of justice." If illegal actions were taken at the two companies, he says, "criminal prosecution should be pursued and people should go to jail." Click here for a copy of the letter.

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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.

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