MVA White Collar Defense, Investigations, and Regulatory Advice Blog

As government authorities around the world create a constantly evolving regulatory environment, conduct overlapping investigations, and bring parallel proceedings, companies are facing perhaps the most challenging regulatory and criminal enforcement environment. Our goal is to serve as a leading-edge resource for companies navigating these waters. Moore & Van Allen’s WCIRA News Clips is a complement to our White Collar Defense, Investigations, and Regulatory Advice Blog’s in-depth individual treatment of critical emerging issues. WCIRA News Clips hits the highlights of recent developments, streamlining access to critical information for our readers. Subscribe to the White Collar Defense, Investigations, and Regulatory Advice Blog via email or RSS to ensure that you receive WCIRA News Clips, as well as our comprehensive posts. Please contact us if you have any questions regarding the materials covered.

• Federal Reserve Board Finalizes New Supervisory Rating System for Large Financial Institutions: In early November, 2018, the Federal Reserve Board (FRB) completed a new rating system that will apply to (a) all domestic bank holding companies and (b) non-insurance, non-commercial savings and loan holding companies with $100 billion or more in total consolidated assets. The FRB noted that the $100 billion threshold is double the original proposed threshold. The new rating system also will apply to U.S. intermediate holding companies of foreign banking organizations with $50 billion or more in total consolidated assets. Additional information regarding the new rating system can be found here.
• Agencies Issue Proposal to Streamline Regulatory Reporting for Qualifying Small Institutions: The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) issued a notice of proposed rulemaking and request for public comment on a rule regarding the filing of the FFIEC 051 Call Report. The proposed rule would implement section 205 of the Economic Growth, Regulatory Relief, and Consumer Protection Act and would streamline and reduce the reporting required by certain insured depository institutions with less than $5 billion in total consolidated assets that meet other criteria. The OCC and Federal Reserve Board also proposed a similar reduction in reporting for certain uninsured institutions under their supervision with less than $5 billion in total consolidated assets. Details regarding the proposal can be found here.
• U.S. Sues UBS Seeking Civil Penalties for Fraud in Sale of Residential Mortgage-Backed Securities: The United States filed suit UBS AG alleging that the company defrauded investors in connection with the sale of residential mortgage-backed securities from 2006-2007, thereby contributing to the 2008 financial crisis. The matter is being directed by the United States Attorneys’ Offices for the Eastern District of New York and the Northern District of Georgia.
• DOJ Charges Three More Traders with Spoofing: The U.S. Department of Justice (DOJ) announced that three former commodities traders of a New York-based financial services firm were charged for allegedly participating in a conspiracy to deceive commodities market participants and to manipulate commodities markets by placing thousands of orders they did not intend to execute to create the appearance of increased supply or demand. The agency alleges that the orders distorted market prices, resulting in market losses of over $60 million for those who traded at the time. Additional information regarding the case and the indictment are available here.