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Financial Institutions Leveraged Lending

Kramer Levin Naftalis & Frankel LLP

How Regulation of Leveraged Lending Will Change Under President Biden

The change in administration that will take place on Jan. 20, 2021, will likely have significant consequences for leveraged lending market participants. The relatively “soft touch” regulatory approach taken by federal...more

Kramer Levin Naftalis & Frankel LLP

GAO Report Finds that Leveraged Lending Has Not Threatened Financial Stability

On Dec. 16, 2020, the U.S. Government Accountability Office (the GAO) issued a report to the Board of Governors of the Federal Reserve System, the Commodity Futures Trading Commission, the Department of the Treasury, the...more

White & Case LLP

Lenders’ views on documentation diverge under lockdown

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The decline in H1 2020 leveraged finance issuance has seen some lenders intensify their focus on pricing and borrower-friendly loan structures, but lender responses to the impact of COVID-19 have diverged across regions....more

White & Case LLP

Key COVID-19 FAQs for financial institutions: A Cross-border view (Updated)

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Our global team has prepared the following FAQs to provide financial institutions with a cross-border perspective in navigating the governmental/regulatory response to the COVID-19 pandemic. Financial institutions...more

Kramer Levin Naftalis & Frankel LLP

2020 Stress Tests to Emphasize Leveraged Lending Risks

On Feb. 6, the Federal Reserve Board released the hypothetical scenarios for the 2020 stress test exercises, which ensure that large banks have adequate capital and processes to continue lending to households and businesses...more

Kramer Levin Naftalis & Frankel LLP

FDIC Views on Leveraged Lending

The FDIC Fall 2019 edition of Supervisory Insights contained an article entitled “Leveraged Lending: Evolution, Growth and Heightened Risk”. In the article, the FDIC noted that the credit agreement terms have continued to...more

Kramer Levin Naftalis & Frankel LLP

Federal Reserve Board Chairman Powell Finds That Leveraged Lending Presents No Notable Risks to Financial Stability

Federal Reserve Board of Governors Chairman Jerome H. Powell, in remarks made yesterday in Amelia Island, Florida, at the 24th Annual Financial Markets Conference, sponsored by the Federal Reserve Bank of Atlanta, stated that...more

Kramer Levin Naftalis & Frankel LLP

Federal Reserve Chairman Powell Testifies That Leveraged Lending Does Not Pose a Systemic Risk to Banks

On Feb. 27, 2019, Federal Reserve Chairman Jerome Powell, during testimony before the House Financial Services Committee, was asked by Representative Gregory Meeks (D-NY, 5th District) whether the Federal Reserve “believes...more

Kramer Levin Naftalis & Frankel LLP

Comptroller of the Currency Announces That Leveraged Lending Guidance Is Not Expected to Be Changed

On May 24, 2018, Joseph Otting, the comptroller of the currency, the principal regulator of all national banks, announced in a telephonic press conference that he does not expect that the Office of the Comptroller of the...more

Dechert LLP

The Congressional Review Act: Striking a New Balance between Congressional Control and Regulatory Initiative – The Fate of the...

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After more than two decades in obscurity, the Congressional Review Act (CRA) has now emerged as a major factor in the relationship between the U.S. Congress and the regulatory agencies....more

Ballard Spahr LLP

GAO determination that leveraged lending guidance is subject to CRA could foreshadow similar fate for CFPB indirect auto finance...

Ballard Spahr LLP on

In May 2017, we blogged about press reports that the Government Accountability Office (GAO) had accepted a request from Senator Patrick Toomey for a determination concerning whether the CFPB Bulletin 2013-02, titled “Indirect...more

Orrick - Finance 20/20

Treasury Department Report: Decreasing Regulatory Burdens, Increasing Regulatory Accountability and Fostering Economic Growth

Orrick - Finance 20/20 on

On June 12, 2017, the U.S. Treasury Department released its report to the President, "A Financial System That Creates Economic Opportunities – Banks and Credit Unions," authored by Steven Mnuchin, Secretary, and Craig...more

Kramer Levin Naftalis & Frankel LLP

Preparing for Antitrust Scrutiny of Arranger and Lender Conduct in Leveraged Loan Commitment Process

As a result of the announcement by the European Commission in its 2017 Management Plan that it will possibly engage in a sector inquiry under Article 17 of Regulation 1/2003 of the Treaty on the Functioning of the European...more

Cadwalader, Wickersham & Taft LLP

[Event] Finance Forum - December 1st, Charlotte, NC

Cadwalader, Wickersham & Taft LLP is sponsoring its inaugural Finance Forum in Charlotte, North Carolina on December 1st.  Join Cadwalader, Wickersham & Taft LLP and fellow industry leaders to discuss emerging trends, market...more

Dechert LLP

Private Equity Newsletter - Summer 2015 Edition: Recent Developments in Acquisition Finance

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As we discussed in a prior newsletter, the evolving landscape for regulated financiers under the Leveraged Lending Guidance1 promulgated by the Federal Reserve Board, FDIC and OCC has increased uncertainty for regulated...more

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