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Winter 2016
 

Banking Agencies Finalize Margin and Capital Requirements

By Travis Wahl and Nici Workman

Recently five federal agencies, The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Farm Credit Administration and the Federal Housing Finance Agency (collectively, the Agencies), issued much-anticipated joint final rules (the Final Rules) that establish minimum margin and capital requirements for registered swap dealers, major swap participants, security-based swap dealers and major security-based swap participants (Swap Entities) for which one of the Agencies is the prudential regulator (Swap Entities regulated by one or more of the Agencies are referred to as Covered Swap Entities). The Final Rules are substantially similar in many respects to the most recently proposed margin and capital rules issued by the Agencies in September of 2014 (the 2014 Proposed Rules), but there are some differences as well, including with respect to eligible collateral.  Read more.


Cybersecurity—What You Need to Know Now

By Kimberly Schaefer 

It’s all over the news and it’s top of mind with bank regulators: “Cybersecurity.” What happened with Target, Home Depot and Wyndham hasn’t helped. The last several years have been fraught with news story after news story about those crafty hackers who find vulnerabilities in a company’s system and steal private information or even redirect funds. And despite all of our technological advancements, the escalation in successful hacking attempts has no end in sight. Call them hackers, fraudsters or good old-fashioned crooks, from computer-savvy teenagers to state-sponsored groups, they are not going away. And, unfortunately, they seem at times to be two steps ahead of the latest security software and security vendors that are offering you and your financial institution protection.  Read more.


Internet Defamation and the Banking Industry

By Whitney Gibson and Jordan Cohen

With an industry-wide focus on enterprise risk management, and with the particular vulnerability of banks to the adverse impact of “reputation risk,” it is important that banks understand and take appropriate steps to mitigate risks associated with internet defamation. Online reputation attacks, including internet defamation, are affecting all industries and professionals. Banks, –including community banks,– are not immune from being attacked and disparaged online.  Read more.


Closely-held Banks and Estate Planning: Traps for the Unwary

By Jeffrey Smith

Bank and thrift shareholders are “different.” Direct or indirect ownership or control of large blocks of stock in a bank or a thrift institution brings with it the need to be cognizant of complex state and federal laws and regulations that may well trigger applications with state and federal regulators to approve the ownership, and/or a proposed transfer of ownership, in advance. In addition, ownership or control of large blocks of stock in banks and thrifts may result in the holding entity being deemed a bank or thrift holding company under federal law, again bringing with it not only the need for prior Federal Reserve approval, but potential ongoing supervision, regulation and limits on activities of the holding entity. Both of the foregoing pertain to shares held directly in banks and thrifts, and also through indirect control of banks and thrifts through stock held in their holding companies (if a holding company is already in place). Applicable law impacts both direct and indirect holdings of bank and thrift stock.  Read more.


About the Vorys Banking Group

With nearly 20 lawyers dedicated to our banking practice, we have hundreds of years of combined practical, hands-on experience in the banking industry. We have been named a "Top Lead Legal Advisor" by American Banker magazine and a Go-To Law Firm® in banking and finance, securities and corporate transactions by Fortune 500 general counsel.

Our group has extensive experience with all aspects of bank corporate and regulatory legal matters, and our attorneys are in constant contact with senior representatives of state and federal banking agencies concerning a diverse variety of significant client matters. We have been intimately involved in the comprehensive rewrite of Ohio banking laws, currently underway with the Ohio Division of Financial Institutions. In fact, since the inception of this project, one of our lawyers, along with representatives from the Ohio Division of Financial Institutions and the Ohio Bankers League, has been a member of the four-person team tasked with handling the rewrite.

We represent public and non-public institutions, from community banks and thrifts to large, multinational financial institutions throughout the United States including clients in Ohio, Washington, D.C., Maryland, Virginia, Arizona, Florida, Indiana, Michigan, Kentucky, Missouri, New York, North Carolina, South Carolina and West Virginia.

We assist our clients with bank, thrift, holding company and non-bank affiliate formations; securities law matters; board governance and education; regulatory enforcement actions involving state and federal agencies; mergers, acquisitions and divestitures; branch acquisitions and divestitures; regulatory compliance; capitalization, recapitalization and private equity as well as debt transactions; litigation; employment law matters; executive compensation and benefit plans; tax matters; and the negotiation of all types of contracts. We also represent financial institutions and other institutional lenders, as well as borrowers, in all types of complex commercial and real estate financings, bankruptcies and restructurings.

If you have an idea for an article you would like us to pursue, please contact your Vorys attorney. We hope you enjoy the read.


 

Contacts

Aaron S. Berke
330.208.1017
asberke@vorys.com

Lauren A. Brown
614.464.6224
labrown@vorys.com

Jordan S. Cohen
513.723.4073
jscohen@vorys.com

Elizabeth Turrell Farrar
614.464.5607
etfarrar@vorys.com

Whitney C. Gibson
513.723.4823
wcgibson@vorys.com

Jason L. Hodges
513.723.8590
jlhodges@vorys.com

Michael D. Martz
614.464.6451
mdmartz@vorys.com

Kimberly J. Schaefer
513.723.4068
kjschaefer@vorys.com

Cynthia A. Shafer
513.723.4009
cashafer@vorys.com

Jeffery E. Smith
614.464.5436
jesmith@vorys.com

J. Bret Treier
330.208.1015
jbtreier@vorys.com

Travis J. Wahl
614.464.6282
tjwahl@vorys.com

Anthony D. Weis
614.464.5465
adweis@vorys.com

Nancy Nicole "Nici" Workman
614.464.8368
nnworkman@vorys.com

Frank C. Zonars
614.464.5638
fczonars@vorys.com


 

 

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This alert is for general information purposes and should not be regarded as legal advice. As always, please let us know if you want more information or have questions about how these developments apply to your situation.