After a year marked by student protests on university campuses nationwide, including encampments and commencement ceremony walk-outs, universities are scrambling to prepare for students’ return to campus the upcoming Fall...more
On February 20, the US Supreme Court declined to hear challenges brought by rental unit owners to recent changes made to New York City’s Rent Stabilization Laws. Since these changes went into effect in 2019, news outlets have...more
Good nonprofit governance is challenging. It involves crafting and implementing smart policies that can be clearly communicated and anticipate future problems. This is easier said than done, especially with unpaid boards and,...more
1/30/2024
/ Code of Conduct ,
Colleges ,
Excise Tax ,
Faculty ,
Federal Student Aid ,
Free Speech ,
Governance Standards ,
Nonprofits ,
Policies and Procedures ,
Protests ,
Tax Exemptions ,
Universities
This constitutes the third in a four-part series that discusses the practice of repledging (sometimes referred to as “rehypothecation”), how standard agreements allow for repledging, the treatment of repledging under current...more
For better or worse, generative artificial intelligence (GenAI) is already transforming the way we live and work. Within two months of its initial release to the public, ChatGPT reached 100 million monthly active users,...more
1/4/2024
/ Applications ,
Artificial Intelligence ,
College Admissions ,
Copyright ,
Grants ,
Intellectual Property Protection ,
Machine Learning ,
Patents ,
Professors ,
Remote Learning ,
Research and Development ,
Students ,
Teachers ,
Universities
Although July 3 was the first business day on which no USD LIBOR was published, many financial instruments will not reset until the next reset date, based upon the tenor of each instruments’ underlying benchmark, which could...more
In light of the banking failures of Silicon Valley Bank, Signature Bank and First Republic (as well as Credit Suisse), this summer, the Federal Reserve and the FDIC proposed guidance and rules for larger banks to (i) develop...more
11/7/2023
/ Bankruptcy Code ,
Bankruptcy Court ,
Capital Requirements ,
Chapter 11 ,
Chapter 7 ,
Collateral ,
Debtors ,
FDIC ,
Federal Reserve ,
Insolvency ,
Lehman Brothers ,
Liquidation ,
Liquidity ,
Repurchase Agreements ,
Risk Mitigation ,
Secured Debt ,
SIPA ,
Unsecured Debt
The practice of repledging (sometimes referred to as “rehypothecation”) is utilized in, among others, loan, swap, and brokerage transactions. In connection with troubled financing institutions, it may be a classic example of...more
Nearly 14 years ago, guidance was provided by federal regulators to facilitate commercial real estate loan work-outs.
Rather than ‘extend & pretend,’ regulators had encouraged, and are encouraging, banks to work with...more
On May 15, 2023, Florida Governor Ron DeSantis signed legislation that impedes Diversity, Equity, and Inclusion (DEI) programs at public higher education institutions throughout the state. Florida’s legislation is among a...more
There are major issues arising from the phaseout of the US Dollar London InterBank Offered Rate (LIBOR), which will soon become apparent in connection with LIBOR’s fast-approaching end date. This will dramatically impact many...more
Subject to appeal, ICE Benchmark Administration Limited (IBA) will be required to publish synthetic USD LIBOR beginning on July 1 so as to reduce any market disruption and maintain the orderliness of the financial system....more
USD LIBOR is the last step in the long and winding road that has been LIBOR’s slow demise over the last several years as all other LIBOR instruments worldwide have already substantially transitioned.
As taxpayers prepare...more
With USD LIBOR expected to end on June 30, 2023, there are numerous legal and financial implications to consider, especially as the pace of remediation of leveraged loans (and other commercial loans) needs to progress further...more
In a welcome change in approach to financial market regulation, the United Kingdom’s Financial Conduct Authority (FCA) is requiring market participants to deliver good outcomes for consumers.
On July 27, 2022, the FCA...more
1/25/2023
/ Consumer Protection Laws ,
Enforcement ,
Fair Valuation ,
Financial Conduct Authority (FCA) ,
Financial Crimes ,
Financial Markets ,
Financial Stability Acts ,
Governance Standards ,
Private Right of Action ,
Securities and Exchange Commission (SEC) ,
Suitability Requirements ,
UK
Last year, the United Kingdom Financial Conduct Authority (UK FCA) announced the following: -
‘Zombie’ USD LIBOR for proposed use from July 1, 2023, through September 30, 2024, except for cleared derivatives -
1-Month and...more
Harvard University must pay its own defense costs in the ongoing legal challenges to its affirmative action program after losing a battle with its insurance carrier, Zurich American Insurance Company (Zurich)....more
The death of the London InterBank Offered Rate (LIBOR) in the US may involve its coming back to life through ‘Zombie’ LIBOR.
A parallel resurrection occurred in connection with Yen LIBOR and Pound LIBOR on New Year’s Eve...more
In September 2022, the US Securities and Exchange Commission (SEC) announced that it had filed suit against one broker-dealer underwriter and entered into settlements with three other broker-dealer underwriters in cases...more
The Commodity Futures Trading Commission, under a reconstituted Commission, is signaling a new era of aggressive enforcement of the Commodity Exchange Act.
Significant Violations and Penalties -
United States-
On...more
The US Securities and Exchange Commission (SEC) has adopted a new standard called Regulation Best Interest (Reg BI) that shifts the focus on protecting customers first and foremost. Although the regulation possibly puts...more
8/1/2022
/ Best Interest Standard ,
Broker-Dealer ,
Compliance ,
Conflicts of Interest ,
Consumer Protection Laws ,
Cryptoassets ,
Cryptocurrency ,
Disclosure Requirements ,
Due Diligence ,
EU ,
Fiduciary Duty ,
Financial Adviser ,
Investment Adviser ,
Securities and Exchange Commission (SEC)
LIBOR Relief Included In Appropriations Bill -
New York Law Concerns -
The New York law enacted in April 2021 provides the ‘Get Out of Jail’ card[2] for banks from litigation relating to the LIBOR (London InterBank...more
4/15/2022
/ Alternative Reference Rates Committee (ARRC) ,
Appropriations Bill ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Financial Institutions ,
Food and Drug Administration (FDA) ,
Interest Rates ,
IRS ,
Libor ,
Loans ,
New Legislation ,
Secured Overnight Funding Rate (SOFR)
According to government regulators across the globe, everyone should have been acting to slow USD LIBOR use for the next six weeks. Except, of course, for the next six weeks…
UK FCA Announcement-
It is now official –...more
Snidely Whiplash kidnaps Nell and, in the show’s opening, ties her to the railroad tracks to get even with his nemesis, Dudley Do-Right, of the famed Royal Canadian Mounted Police. Menacing music plays.
In each episode,...more
11/4/2021
/ Alternative Reference Rates Committee (ARRC) ,
CFTC ,
Comptroller ,
Consumer Financial Protection Bureau (CFPB) ,
FDIC ,
Federal Reserve ,
Financial Conduct Authority (FCA) ,
Interest Rates ,
ISDA ,
Libor ,
NCUA ,
Proposed Legislation ,
Secured Overnight Funding Rate (SOFR) ,
Securities and Exchange Commission (SEC) ,
Trust Indenture Act ,
UK
On September 29, 2021, the UK Financial Conduct Authority (UK FCA) proposed that synthetic LIBOR rates (i.e. ‘Zombie’ LIBOR) be published next year for certain currencies, for a maximum of ten (10) years. In addition, it also...more