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Introduction |
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Chapter 1: |
U.S. Bank Regulators at the Onset of the Financial Crisis |
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- § 1:1 : Introduction1-2
- § 1:2 : Office of the Comptroller of the Currency1-3
- § 1:2.1 : Overview1-3
- § 1:2.2 : Regulation and Supervision of National Banks1-4
- § 1:2.3 : Preemption1-5
- § 1:3 : The Federal Reserve Board1-7
- § 1:3.1 : Overview1-7
- § 1:3.2 : Structure and Funding1-8
- § 1:3.3 : Establishing Monetary Policy1-9
- § 1:3.4 : Regulation of State Member Banks1-10
- § 1:3.5 : Regulation of Bank Holding Companies and Financial Holding Companies1-12
- § 1:3.6 : Regulation of Non-U.S. Banks1-14
- § 1:3.7 : Consumer Protection Regulations1-15
- § 1:3.8 : Banking Services: Payment Systems and Discount Window Lending1-15
- [A] : Payment Systems: Clearance and Settlement1-15
- [B] : Discount Window1-16
- § 1:4 : Federal Deposit Insurance Corporation1-16
- § 1:4.1 : Overview1-16
- § 1:4.2 : Deposit Insurance1-17
- § 1:4.3 : Regulation of State Non-Member Banks and Savings Associations1-18
- § 1:4.4 : Activities of State-Chartered Banks and Savings Associations1-19
- § 1:4.5 : Non-U.S. Activities of State Non-Member Banks1-19
- § 1:4.6 : Retail Deposit Funding by Non-U.S. Banks1-20
- § 1:4.7 : Bank Insolvency Regime1-20
- § 1:5 : Office of Thrift Supervision1-22
- § 1:5.1 : Overview1-22
- § 1:5.2 : Regulation of U.S. Thrifts1-23
- § 1:5.3 : Interpretation of HOLA and Preemption1-23
- § 1:5.4 : Regulation of U.S. Thrift Holding Companies1-24
- § 1:5.5 : Non-U.S. Activities of Savings and Loan Holding Companies1-25
- § 1:6 : The National Credit Union Administration1-25
- § 1:6.1 : Overview1-25
- § 1:6.2 : Role and Responsibility of the NCUA1-26
- § 1:7 : Federal Housing Finance Agency1-27
- § 1:7.1 : Overview1-27
- § 1:7.2 : FHLB Banks1-28
- [A] : Overview1-28
- [B] : Office of Finance1-29
- § 1:7.3 : Supervision and Regulation1-29
- § 1:7.4 : Enforcement1-30
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Chapter 2: |
The Financial Crisis--Critical Events |
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- § 2:1 : Introduction2-1
- § 2:2 : Time Line of the Crisis2-2
- § 2:3 : Details of Major Events2-6
- § 2:3.1 : Bear Stearns Liquidity Crisis and Merger with JPMorgan2-6
- § 2:3.2 : The IndyMac and Washington Mutual Failures and the Role of the Office of Thrift Supervision2-8
- § 2:3.3 : Conservatorship of Fannie Mae and Freddie Mac2-10
- § 2:3.4 : Too Big to Fail I: Lehman, Merrill, and AIG2-12
- § 2:3.5 : Too Big to Fail II: Citigroup and Bank of America2-15
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Chapter 3: |
Initial Regulatory Responses to the Financial Crisis |
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- § 3:1 : Introduction3-2
- § 3:2 : Emergency Lending by the Federal Reserve3-2
- § 3:2.1 : Overview3-2
- § 3:2.2 : Term Securities Lending Facility3-3
- § 3:2.3 : Rescue of Bear Stearns3-4
- § 3:2.4 : Primary Dealer Credit Facility3-5
- § 3:2.5 : Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility3-7
- § 3:2.6 : Commercial Paper Funding Facility3-8
- § 3:2.7 : Term Asset-Backed Securities Loan Facility3-8
- § 3:2.8 : Summary3-10
- § 3:3 : Troubled Asset Relief Program3-11
- § 3:3.1 : Establishment3-11
- § 3:3.2 : TARP Programs3-13
- [A] : Capital Purchase Program3-13
- [B] : Capital Assistance Program3-14
- [C] : Targeted Investment Program3-14
- [D] : Asset Guarantee Program3-15
- [E] : Automobile Industry Financing Program3-15
- [F] : Making Home Affordable Program3-17
- § 3:3.3 : Management, Implementation, and Oversight3-17
- [A] : Oversight Bodies3-17
- [B] : Executive Compensation for TARP Recipients3-19
- § 3:3.4 : Outcome3-20
- § 3:4 : Temporary Liquidity Guarantee Program3-21
- § 3:4.1 : Overview3-21
- § 3:4.2 : Debt Guarantee Program3-21
- § 3:4.3 : The Transaction Account Guarantee Program3-24
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Chapter 4: |
Systemic Regulation: Financial Stability Oversight Council |
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- § 4:1 : Introduction4-2
- § 4:2 : Antecedents4-3
- § 4:2.1 : Paulson Treasury “Blueprint”4-3
- § 4:2.2 : Geithner Treasury “White Paper”4-4
- § 4:3 : House and Senate Bills4-7
- § 4:3.1 : House Bill—Wall Street Reform and Consumer Protection Act4-7
- § 4:3.2 : Senate Bill4-9
- § 4:4 : Enacted Legislation4-11
- § 4:4.1 : Overview4-11
- § 4:4.2 : Systemic Designation Authority4-12
- § 4:4.3 : Recommending Standards4-13
- § 4:4.4 : Systemic Designation—“Nonbank Financial Company”4-14
- [A] : Overview4-14
- [B] : Exclusions from the Definition of “Nonbank Financial Companies”4-15
- [C] : Factors for Systemically Important Designation4-15
- [D] : Appeal and Review of Systemically Important Designation4-16
- [E] : Anti-Evasion Provision4-17
- [F] : Potential Exemptions4-18
- § 4:4.5 : Systemic Designation—Bank Holding Companies4-18
- § 4:5 : Enhanced Prudential Standards4-19
- § 4:5.1 : Overview4-19
- § 4:5.2 : Guidelines for Designing Heightened Standards4-20
- § 4:5.3 : Particular Prudential Standards: Inclusion of Off-Balance Sheet Activities in Computing Capital Requirements4-21
- § 4:5.4 : Contingent Capital4-21
- § 4:5.5 : Limits on Credit Exposures to Non-Affiliates4-21
- § 4:5.6 : Concentration Limits on Large Financial Firms4-22
- § 4:5.7 : Risk Committees at Public Companies4-22
- § 4:5.8 : Resolution Plans (“Living Wills”)4-23
- § 4:5.9 : Credit Exposure Reports4-24
- § 4:5.10 : Enhanced Public Disclosures4-24
- § 4:5.11 : Short-Term Debt Limits4-24
- § 4:5.12 : Stress Tests4-24
- § 4:5.13 : Early Remediation4-25
- § 4:5.14 : Kanjorksi Amendment: Asset Sales and Breakup Powers4-25
- § 4:5.15 : Leverage Limit4-26
- § 4:6 : Designating Particular Activities and Setting Standards4-26
- § 4:7 : Registration of Systemic Firms4-27
- § 4:8 : Intermediate Holding Companies4-27
- § 4:9 : Reports, Examinations, and Enforcement Regarding Nonbank Companies4-28
- § 4:10 : Bank Holding Company Act Activities Restrictions and Acquisition Limits4-29
- § 4:11 : Application to Non-U.S. Financial Companies4-30
- § 4:11.1 : Overview4-30
- § 4:11.2 : Recommendation and Application of Standards to Non-U.S. Banking Entities4-31
- § 4:11.3 : Specific Modification of Systemic Risk Provisions4-32
- § 4:11.4 : Treatment of Non-U.S. Nonbank Financial Companies: Designation4-32
- § 4:11.5 : Extraterritorial Application Generally4-33
- § 4:12 : Office of Financial Research4-34
- § 4:13 : FSOC and OFR Actions4-37
- § 4:13.1 : Overview4-37
- § 4:13.2 : Proposed Rules on Systemic Designation4-38
- § 4:13.3 : OFR—Legal Entity Identifier4-45
- § 4:14 : Federal Reserve Proposed Rule on Predominantly Financial and Significant Bank Holding Companies4-45
- § 4:14.1 : “Predominantly Engaged in Financial Activities”4-46
- § 4:14.2 : “Significant” BHCs and Nonbank Financial Companies4-53
- § 4:15 : Title VIII Designation of Systemically Important Financial Market Utilities4-53
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Chapter 5: |
Orderly Liquidation Authority |
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- § 5:1 : Introduction5-1
- § 5:2 : Administration Antecedents5-2
- § 5:2.1 : Paulson Treasury “Blueprint”5-2
- § 5:2.2 : Geithner Treasury “Rules of the Road”5-3
- § 5:2.3 : Geithner Treasury “White Paper”5-8
- § 5:3 : House and Senate Bills5-9
- § 5:3.1 : House Bill5-9
- § 5:3.2 : Senate Bill5-10
- § 5:4 : Orderly Liquidation Authority As Enacted5-13
- § 5:4.1 : Coverage Limitations: Financial Companies5-13
- § 5:4.2 : Designating a Financial Company As a “Covered Financial Company”5-14
- § 5:4.3 : Authority to Transfer Assets or Liabilities5-17
- § 5:4.4 : Duration of Receivership5-18
- § 5:4.5 : Funding of Liquidation5-18
- § 5:4.6 : FDIC “Super Powers”: Bankruptcy Code Approach5-20
- § 5:4.7 : Liquidation Priorities5-22
- § 5:4.8 : Officers and Directors5-25
- § 5:4.9 : Required Rulemaking, Reports, and Studies5-26
- § 5:5 : Post-Enactment Regulatory Actions5-27
- § 5:5.1 : FDIC Final Rule: 12 C.F.R. Part 3805-27
- [A] : Subpart A5-28
- [B] : Subpart B5-31
- [C] : Subpart C5-34
- § 5:6 : Criticism of the Orderly Liquidation Authority5-37
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Chapter 6: |
The Volcker Rule |
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- § 6:1 : Introduction6-2
- § 6:2 : Antecedents6-3
- § 6:2.1 : Prior Restrictions on Trading and Fund Activities6-3
- § 6:2.2 : Obama Administration Focus6-4
- [A] : Administration Financial Reform Efforts6-4
- [B] : Treasury Department Proposal6-5
- [C] : Merkley-Levin Proposal6-7
- [D] : Final Language6-7
- § 6:3 : The Volcker Rule—Statutory Text6-8
- § 6:3.1 : Proprietary Trading Prohibition6-9
- § 6:3.2 : Private Fund Prohibition6-11
- § 6:3.3 : “Anti-Evasion” Provision and Systemically Important Nonbanks6-14
- § 6:3.4 : Effective Date, Conformance Period, and Illiquid Funds6-15
- § 6:4 : FSOC Study6-16
- § 6:4.1 : Findings6-17
- § 6:4.2 : Fundamental Principles to Guide Rulemaking and Implementation6-17
- [A] : Five Fundamental Principles6-17
- [B] : Permitted Activities6-18
- [B][1] : Market-Making Activities6-19
- [B][2] : Risk-Mitigating Hedging6-19
- [B][3] : Underwriting6-20
- [B][4] : Loan Trading and Securitization6-20
- [B][5] : Asset-Liability Management6-20
- § 6:4.3 : Challenges in Implementing the Proprietary Trading Ban6-21
- § 6:4.4 : Supervisory Framework6-21
- § 6:4.5 : Activities by Insurance Companies6-24
- § 6:4.6 : Private Funds6-24
- [A] : Hedge Funds and Private Equity Funds6-24
- [B] : Similar Funds6-25
- [C] : Banking Entity6-25
- § 6:5 : Federal Reserve’s Transition Rules6-28
- § 6:5.1 : Banking Entities6-28
- [A] : Conformance Period and Extensions6-28
- [B] : Additional Extension Period of Up-to-Five-Years6-29
- [B][1] : Illiquid Funds6-29
- [B][2] : Contractual Obligation to Be Invested Principally in Illiquid Assets6-31
- [B][3] : Effect of “Illiquid Funds” Definition6-33
- [C] : Process and Factors for Granting Extensions of Two-Year Conformance Period6-33
- § 6:5.2 : Nonbank Financial Companies6-35
- § 6:6 : Proposed Rules of the Federal Reserve, FDIC, OCC and the SEC6-36
- § 6:6.1 : Overview6-36
- § 6:6.2 : Proprietary Trading Prohibition6-36
- [A] : Definitions6-36
- [B] : Permitted Activity Determination6-38
- [B][1] : Market Making6-38
- [B][2] : Underwriting6-39
- [B][3] : Hedging6-40
- [B][4] : Trading in Government Obligations6-40
- [B][5] : Trading on Behalf of Customers6-41
- [B][6] : Trading By a Regulated Insurance Company6-41
- [B][7] : Trading Solely Outside the United States6-42
- [B][8] : When Permissible Activity Is Impermissible6-42
- [C] : Material Conflict of Interest6-43
- [D] : Compliance Program6-43
- § 6:6.3 : Private Funds Prohibition6-44
- [A] : Definitions6-44
- [B] : Fund “Asset Management” Activity6-45
- [B][1] : Overview6-45
- [B][2] : De Minimis Co-Investment Limits6-46
- [C] : Additional Categories of Permitted Fund Activities Outside Section 619(d)(1)(G)6-47
- [D] : Acquiring Fund Interests As a Hedge6-48
- [E] : Fund Activity Solely Outside the United States6-49
- [F] : Super 23A Provisions6-50
- [G] : Compliance Program6-50
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Chapter 7: |
Bank Regulatory Reform |
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- § 7:1 : Introduction7-3
- § 7:2 : Antecedents7-3
- § 7:2.1 : Paulson Treasury “Blueprint”7-3
- § 7:2.2 : Geithner Treasury “White Paper” and Proposed Legislation; Republican Alternative7-5
- [A] : Geithner Treasury “White Paper” and Proposed Legislation7-5
- [B] : Republican Alternative7-6
- § 7:2.3 : House and Senate Bills7-7
- [A] : House Bill7-7
- [B] : Senate Bill7-7
- § 7:3 : Abolition of the Office of Thrift Supervision and Thrift-Related Reforms7-9
- § 7:3.1 : Abolition of the Office of Thrift Supervision7-9
- [A] : Overview7-9
- [B] : Division of Previous OTS Supervisory and Rulemaking Authority7-9
- [B][1] : Federal Reserve7-10
- [B][2] : OCC7-10
- [B][3] : FDIC7-10
- [C] : OTS Actions/Material Post-Transfer Date7-10
- § 7:3.2 : Thrift-Related Reforms7-10
- [A] : Thrifts and Their Holding Companies7-10
- [B] : Regulation LL: Savings-and-Loan Holding Company Regulation7-12
- [B][1] : Overview7-12
- [B][2] : Permissible Nonbanking Activities7-12
- [B][2][a] : Covered SLHCs Must Comply with FHC Requirements7-13
- [B][2][b] : “Well Capitalized” and “Well Managed” Standards7-13
- [B][2][c] : Affirmatively Electing Treatment As an FHC7-14
- [B][2][d] : Insurance Agency and Escrow Activities7-16
- [B][3] : Control Regulations7-16
- [B][3][a] : Control Determinations7-16
- [B][3][b] : Definition of “Control”7-17
- [B][3][c] : Federal Reserve Approach7-18
- [B][4] : Other Covered Issues7-18
- [B][4][a] : Application Processing7-19
- [B][4][b] : Notice of Change of Director or Senior Executive Officer7-19
- [B][4][c] : Prohibited Service at SLHCs7-19
- [B][4][d] : Management Official Interlocks7-19
- [B][4][e] : Investigative and Formal Examination Proceedings7-20
- [B][4][f] : Dividends by Subsidiary Savings Associations7-20
- [B][4][g] : Qualified Stock Issuances7-20
- § 7:4 : Bank Holding Company Amendments7-20
- § 7:4.1 : Exemptions from “Bank” Definitions7-20
- § 7:4.2 : Supervision7-21
- § 7:5 : Bank Acquisitions—New Restrictions7-23
- § 7:5.1 : BHC Act Section 37-23
- § 7:5.2 : Deposit Cap on Other Insured Depository Institution Holding Companies7-24
- § 7:5.3 : Dodd-Frank Act Section 622 “Concentration Limit” Provision7-24
- [A] : Overview7-24
- [B] : FSOC Study7-25
- [C] : Bank Holding Companies—“Source of Financial Strength”7-28
- § 7:6 : Nonbanking Activities and Acquisitions—New Restrictions7-29
- § 7:6.1 : Dodd-Frank Act Sections 606(a) and 606(b)7-29
- § 7:6.2 : Dodd-Frank Act Sections 163(b) and 604(e)7-29
- § 7:7 : Changes to Bank Prudential Regulation7-30
- § 7:7.1 : Overview7-30
- § 7:7.2 : Amendments to Section 23A and 23B of the Federal Reserve Act7-32
- § 7:7.3 : Transactions with Insiders7-34
- § 7:7.4 : Lending Limits7-34
- § 7:7.5 : Securities Holding Companies7-35
- § 7:8 : Enhanced Capital Requirements7-36
- § 7:9 : Capital Plans and Living Wills7-43
- § 7:9.1 : Overview7-43
- § 7:9.2 : Capital Plans7-43
- § 7:9.3 : Living Wills7-45
- § 7:9.4 : Credibility Review7-48
- § 7:10 : Deposit Insurance Reforms7-52
- § 7:10.1 : Overview7-52
- § 7:10.2 : New Assessment Scheme7-54
- § 7:10.3 : Deposit Insurance7-56
- § 7:11 : Federal Reserve Reform and Emergency Stabilization7-57
- § 7:11.1 : Overview7-57
- § 7:11.2 : Section 13(3) Assistance7-57
- § 7:11.3 : Emergency Financial Stabilization7-59
- § 7:11.4 : Governance7-60
- § 7:11.5 : TARP7-60
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Chapter 8: |
Investment Adviser and Securities Law Reforms |
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- § 8:1 : Introduction8-2
- § 8:2 : Investment Advisers Act Reforms8-2
- § 8:2.1 : Investment Advisers Act of 19408-2
- § 8:2.2 : Final SEC Rules8-4
- [A] : Overview8-4
- [B] : Venture Capital Funds8-5
- [B][1] : Overview8-5
- [B][2] : Twenty Percent Basket for Non-Qualifying Investments8-6
- [B][3] : Borrowing, Providing Guarantees, or Incurring Leverage8-8
- [B][4] : Investors Redemption or Other Liquidity Rights8-9
- [B][5] : Private Fund8-9
- [B][6] : Grandfather8-10
- [C] : Private Fund Adviser Exemption8-10
- [D] : Foreign Private Adviser Exemption8-13
- [E] : Changes to Threshold for SEC Registration8-15
- [F] : New Family Office Exemption8-17
- [G] : New Recordkeeping and Reporting Obligations8-21
- [H] : Reporting Requirements for Exempt Reporting Advisers8-23
- [I] : Other Statutory Provisions Affecting Investment Advisers8-24
- § 8:3 : Securities Law Reform8-25
- § 8:3.1 : Investor Protection and Broker-Dealer-Related Provisions8-25
- [A] : Overview8-25
- [B] : SEC Study on Investment Adviser Standard of Care8-27
- § 8:3.2 : Self-Regulatory Organization Rules8-30
- § 8:3.3 : Securities Law Enforcement Provisions8-30
- [A] : Overview8-30
- [B] : SEC Final Whistleblower Rules8-33
- § 8:3.4 : Extraterritorial Jurisdiction of Antifraud Provisions8-34
- § 8:4 : Credit Rating Agencies8-35
- § 8:4.1 : Overview8-35
- § 8:4.2 : Governance and Compliance8-35
- § 8:4.3 : Penalties and Liabilities8-36
- § 8:4.4 : Conflicts of Interest8-37
- § 8:4.5 : Procedures and Methodologies Rules8-38
- § 8:4.6 : Disclosure8-39
- § 8:5 : Securitization Reforms8-40
- § 8:5.1 : Credit Retention Requirements8-40
- § 8:5.2 : Conflict of Interest Prohibitions8-42
- § 8:6 : Municipal Securities Reforms8-43
- § 8:6.1 : Municipal Advisors and the Municipal Securities Rulemaking Board8-43
- § 8:6.2 : Executive Compensation and Corporate Governance8-44
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Chapter 9: |
Derivatives Reform |
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- § 9:1 : Introduction9-2
- § 9:2 : Antecedents9-2
- § 9:2.1 : Paulson Treasury “Blueprint”9-2
- § 9:2.2 : Geithner Treasury “Rules of the Road”9-3
- § 9:2.3 : Geithner Treasury “White Paper”9-4
- § 9:3 : Administration and House Bills9-5
- § 9:3.1 : Over-the-Counter Derivatives Markets Act of 20099-5
- § 9:3.2 : Frank Proposal9-9
- § 9:4 : Senate Action9-11
- § 9:5 : Enacted Legislation9-14
- § 9:5.1 : Overview9-14
- § 9:5.2 : Jurisdictional Allocations: Swaps, Security-Based Swaps and Mixed Swaps9-14
- § 9:5.3 : State Law Preemption9-16
- § 9:5.4 : Regulated Market Participants: Swap Dealers and Major Swap Participants9-16
- § 9:5.5 : Revisions to Existing Definitions of Certain Market Participants9-18
- § 9:5.6 : New Mandatory Clearing of Swaps9-19
- § 9:5.7 : New Mandatory Swap Trade Execution Requirements9-20
- § 9:5.8 : Public Reporting of Swap Transaction Data9-21
- § 9:5.9 : Other New Requirements Concerning Swaps9-21
- § 9:5.10 : Capital and Margin Requirements9-22
- § 9:5.11 : Protection of Counterparty Funds and Property9-23
- § 9:5.12 : Position Limits and Large Swap Trader Reporting9-24
- § 9:5.13 : Extraterritoriality9-25
- § 9:5.14 : Exchange Act Beneficial Ownership Reporting9-25
- § 9:5.15 : Conflicts of Interest9-26
- § 9:5.16 : Enforcement Authority, Insider Trading, Disruptive Practices and Whistleblowers9-26
- § 9:5.17 : Prohibition on Federal Assistance to Swaps Entities9-26
- § 9:5.18 : Rulemaking, Effectiveness, and Exemptive Authority9-29
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Chapter 10: |
Consumer Financial Protection Bureau |
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- § 10:1 : Introduction10-2
- § 10:2 : Antecedents10-2
- § 10:2.1 : Paulson Treasury “Blueprint”10-2
- [A] : Short-Term Recommendation10-3
- [B] : Long-Term Recommendation: Conduct of Business Regulatory Agency10-3
- § 10:2.2 : Geithner Treasury “White Paper”10-5
- [A] : Overview10-5
- [B] : Consumer Financial Protection Agency10-6
- § 10:2.3 : Administration and House Bills10-9
- [A] : Consumer Financial Protection Agency Act of 200910-9
- [B] : House Bill10-11
- [B][1] : Consumer Financial Protection Agency10-11
- [B][2] : CFPA Authority10-11
- [B][3] : Federal Preemption of State Law10-13
- [B][4] : Funding10-14
- [B][5] : Other Provisions10-14
- § 10:2.4 : Senate Bill10-14
- [A] : Overview10-14
- [B] : Bureau Within the Federal Reserve System10-14
- [C] : Federal Preemption of State Law10-15
- [D] : Durbin Amendment10-16
- § 10:3 : Enacted Legislation—The Consumer Financial Protection Bureau10-16
- § 10:3.1 : Overview10-16
- § 10:3.2 : Authority10-17
- [A] : Promulgate Regulations10-17
- [B] : Information Collection10-18
- [C] : Covered Parties10-18
- [C][1] : “Covered Persons”10-18
- [C][2] : “Financial Products or Services”10-18
- [D] : Exempt Persons and Activities10-20
- § 10:3.3 : Preemption10-22
- § 10:3.4 : Funding10-24
- § 10:3.5 : Effective Date10-24
- § 10:3.6 : Durbin Amendment10-24
- § 10:3.7 : Other Provisions10-25
- § 10:4 : Regulatory Developments10-25
- § 10:4.1 : Overview10-25
- § 10:4.2 : Significant CFPB Developments10-26
- § 10:4.3 : Federal Reserve Final “Durbin Amendment” Rule10-27
- § 10:4.4 : OCC Final Preemption Rule10-28
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Chapter 11: |
Table of Authorities |
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Chapter 12: |
Index to Financial Services Regulation Deskbook |
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