This entry updates our entry of April 9, 2013 and this corresponding Osler Update by Andrew Herr regarding the Final Guidance on Leveraged Lending.
On April 11, 2013, the Loan Syndications and Trading Association (LSTA) and the American Bankers Association (ABA) issued a joint letter to Office of the Controller of the Currency, the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (collectively, the Agencies) requesting that the “compliance date” of May 21, 2013 listed in the final guidance be removed and that the guidance be revised to provide for up to twelve months for affected institutions to implement the Agencies’ suggestions. In the letter, the LSTA and ABA stated that more time is required for member institutions to make changes to their policies, procedures and management information systems in order to meet the recommendations in the final guidance. They also indicated that there are interpretive questions remaining in respect of the final guidance that still need to be addressed. These include whether the guidance is essentially a binding rule (notwithstanding the Agencies’ statements to the contrary).