The Honorable Daniel K. K. Tarullo, Member, Board of Governors of the Federal. Reserve System, and Chairman, Affairs Committee.

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1 Published by the Institute of International Bankers Advancing the Interests of the International Banking Community in the United States August 4, 2008 August 5, 2009 INSTITUTE TO HOLD NOV. 10 CONFERENCE ON U.S. BANKRUPTCY/RESOLUTION ISSUES AND CROSS-BORDER IMPLICATIONS FOR INTERNATIONALLY ACTIVE BANKS The Institute will hold a major conference on November 10th in New York on U.S. bankruptcy/resolution issues and cross-border regulatory and market implications for internationally active banks (both U.S. and interna- The Honorable Daniel K. Tarullo, Member, Board of Governors of the Federal Reserve System, and Chairman, Supervisory and Regulatory Affairs Committee. tionally headquartered). The conference will also focus on proposals to establish a new resolution authority for systemically significant financial institutions. Please encourage interested colleagues at American financial organizations to attend. The Honorable Daniel K. Tarullo, Member, Board of Governors of the Federal Reserve System and Chair of the Board s Committee on Supervisory and Regulatory Affairs, will give the afternoon keynote address. Contined on page 3 BREAKFAST REGULATORY DIALOGUE The Institute will hold its annual Breakfast Regulatory Dialogue with Government Officials on Monday, October 5 th, during the IMF/World Bank meetings in Istanbul. All representatives of our member institutions from head offices, U.S. and other operations who will be in Istanbul during the IMF/ World Bank meetings are encouraged to attend this important Institute event (there is no fee to register). Please also encourage interested colleagues at American financial institutions to attend. This year s event is being jointly organized by the Institute and the European Banking Federation, with whom the Institute works closely through the year on many important legislative and regulatory issues. We are grateful to the International Bank of Azerbaijan for their generous support as the sponsor of this year s Breakfast Regulatory Dialogue. Continued on page 5 NEW YORK FED PRESIDENT DUDLEY TO SPEAK AT FALL MEMBERSHIP LUNCH William C. Dudley, President of the Federal Reserve Bank of New York, will speak at the Institute s Fall membership luncheon on Tuesday, October 13th at the Waldorf-Astoria Hotel. Given the importance of Mr. Dudley s position and the Institute s longstanding working relationship with the New York Fed on the many critical regulatory/supervisory issues affecting William C. Dudley, President, Federal Reserve Bank of New York. internationally headquartered financial institutions operating in the U.S., we look forward to a strong turnout of member institutions for his remarks. Continued on page 3 FED GOVERNOR WARSH SPEAKS AT INSTITUTE S JUNE MEMBERSHIP LUNCH The Honorable Kevin M. Warsh, Member of the Board of Governors of the Federal Reserve System, spoke at the membership luncheon preceding the Institute s Annual General Meeting and Elections on June 16th at the Waldorf-Astoria Hotel. Governor Warsh s remarks are available on the Institute s web site at Continued on page 3 Gonzalo de Las Heras (left), Director General, Banco Santander, and Past Chairman of the Institute, and Governor Warsh. The Institute s mission is to help resolve the many special legislative, regulatory and tax issues confronting internationally headquartered financial institutions that engage in banking, securities and/or insurance activities in the United States. 299 Park Avenue, 17th Floor, New York, N.Y Telephone: (212) Facsimile: (212) iib@iib.org Waldo Abbot, Chairman & Lawrence R. Uhlick, Chief Executive Officer

2 ANNUAL RISK MGM T AND REGULATORY EXAMINATION/COMPLIANCE SEMINAR TO BE HELD ON OCT IN NEW YORK The Institute will hold its annual seminar on risk management and regulatory examination/ compliance issues affecting international banks on Monday, October 19th and Tuesday, October 20th in the Proshansky Auditorium at the City University of New York Graduate Center (365 Fifth Avenue, between 34 th and 35 th streets). This year s program will focus extensively on the many critical risk management and related supervisory issues arising from the continuing efforts to address the consequences of the crisis in the financial markets. Particular attention will be given to actions by institutions and supervisory authorities to better manage liquidity risk, credit risk and trading/market risk, as well as to measures to enhance the oversight of credit derivatives transactions. In addition, the seminar will discuss the regulatory and supervisory implications of the Obama Administration s financial regulatory reform proposals, particularly as they affect internationally headquartered financial institutions operating in the United States. We are delighted that Eugene A. Ludwig, Chief Executive Officer of Promontory Financial Group LLC and former Comptroller of the Currency, will give the keynote luncheon address on the first day of the seminar and that Hank Prybylski, Partner at Ernst & Young LLP, will be the keynote luncheon speaker on the second day. Mr. Ludwig will provide his perspective on trends in the greater integration of executive compensation and risk management/governance practices, and Mr. Prybylski will discuss trends in risk management and the supervision of risk management (this important topic will also be covered in a separate afternoon panel discussion on the second day). The morning portion of the first-day program will begin with a panel of top U.S. and international regulatory officials from the Federal Reserve, the Office of the Comptroller of the Currency, the Securities and Exchange Commission and the U.K. s Financial Services Authority, who will provide their perspectives on regulatory/ supervisory policy initiatives. York State Banking Department, the Treasury Department s Financial Crimes Enforcement Network (FinCEN), and the Financial Institutions Regulatory Authority. The seminar will also feature representatives of Institute member banks and leading industry consultants and banking lawyers. This once-a-year program is recognized by the regulatory community as facilitating the risk management and compliance efforts of our member banks by providing them with definitive and timely information on key examination and supervision issues as well as best practices. Accordingly, we urge all member institutions to be represented. In addition to the first-day panel on regulatory/supervisory policy initiatives, and the luncheon addresses, topics to be covered at this year s seminar include: meeting the challenges of managing credit risks in the midst of an economic downturn; market risk developments; managing liquidity risk; the role of compliance in enhancing risk management; emerging trends and key developments in the regulation and supervision of branches and agencies of international banks and in the regulation of international banks themselves as bank holding companies and financial holding companies; the perspectives of prudential supervisors and financial institutions on examination issues; supervisory developments regarding BSA/AML and OFAC compliance; and regulatory and risk management developments relating to credit derivatives. This comprehensive seminar provides an excellent opportunity for experienced officers to be thoroughly updated on new developments and gain practical insights in preparing for examinations. It also offers new officers a solid introduction to the U.S. regulatory system and compliance requirements. An online registration form is available on the Institute s web site at We are also inviting senior regulators from the Federal Reserve Bank of New York, the New 2

3 Fall Membership Luncheon Mr. Dudley assumed his responsibilities as the 10 th President of the New York Fed on January 27, In this role, he also serves as Vice Chairman and permanent member of the Federal Open Market Committee, which is responsible for formulating U.S. monetary policy. Prior to his appointment, Mr. Dudley served as Executive Vice President of the New York Fed s Markets Group. Before joining the Bank in 2007, Mr. Dudley was a Partner and Managing Director at Goldman, Sachs & Co., and was the firm s chief U.S. economist. Earlier in his career, he was a Vice President at Morgan Guarantee Trust Company. The luncheon will be begin with a reception at 12:00 noon in the Palm Room on the 18 th floor, followed by lunch beginning promptly at 12:30 p.m. in the Starlight Roof. The luncheon will end no later than 2:00 p.m. We encourage all interested representatives of member institutions and Professional Liaison Committee firms to attend the luncheon and to invite their business customers and other colleagues as guests. Tables of ten may also be reserved in the name of member institutions and member firms of the Professional Liaison Committee. An online registration form with credit card payment option is available on the Institute s web site at JUNE MEMBERSHIP LUNCHEON Following the luncheon, the Institute held its Annual General Meeting and Election of Officers and Trustees. Waldo Abbot, CEO of Fortis Americas, was elected to a third term as Chairman of the Institute, along with the election of the rest of the slate of candidates. Prior to the elections, Institute Vice Chairman Russell Gibson, Chief Administrative Officer of The Royal Bank of Scotland, presiding in the absence of Mr. Abbot who was traveling on business, described the unique role played by the Institute in achieving industry-wide solutions to problems specifically affecting internationally headquartered financial institutions operating in the United States. Lawrence R. Uhlick, the Institute s Chief Executive November 10th Conference We have also invited Treasury Secretary Geithner to give the opening keynote address and FDIC Chairman Bair to give the luncheon address. The Institute s program will also include panels comprised of governmental and private sector experts addressing a range of policy-oriented and practical issues relevant to internationally active banking organizations, including: An overview of the key U.S. insolvency regimes that apply to financial services firms in the United States, such as U.S. bank, broker-dealer insolvency rules and state vs. federal ring-fencing approaches for U.S. branches of internationally headquartered banks. Special issues relating to conglomerates organized as holding companies with functionally regulated subsidiaries, including lessons emerging from the Lehman Brothers bankruptcy. A discussion of what U.S. insolvency regimes mean for counterparties structuring transactions with regulated and unregulated entities in the United States, including the U.S. operations of internationally headquartered banks. Regulatory and supervisory perspectives on U.S. and international insolvency regimes, including the challenges of cross-border coordination in the current environment. Changes on the horizon: Policy priorities for future reform of U.S. and international insolvency approaches. The Institute is grateful for the assistance of Cleary Gottlieb Steen & Hamilton LLP in the development of this program. It will be held at the CUNY Graduate Center (365 Fifth Avenue). An online registration form is available on the Institute s web site at Officer, then provided an update on the Institute s efforts regarding key legislative, regulatory, compliance and tax issues. Bruce Richards, Managing Director and Head of Americas, National Australia Bank, and Chairman of the Institute s Audit Committee, then reviewed the Institute s financial position. 3

4 INSTITUTE S ANNUAL AML SEMINAR DRAWS LARGE TURNOUT ON JUNE 2ND An outstanding roster of governmental officials and leading banking lawyers, industry consultants and other private-sector experts addressed the Institute s annual anti-money laundering program on Tuesday, June 2nd in New York for the international banking community. Adam J. Szubin, Director of the Treasury Department s Office of Foreign Assets Control, gave the luncheon keynote address; Jamal El-Hindi, Associate Director for Regulatory Policy and Programs at Treasury s Financial Crimes Enforcement Network, gave the opening address; and Lester Joseph, Principal Deputy Chief of the Asset Forfeiture and Money Laundering Section in the Criminal Division of the Department of Justice, was the featured afernoon speaker. Other governmental speakers included: Nina A. Nichols, Assistant Director, Supervisory Enforcement Actions and Special Exams, in the Federal Reserve Board s Division of Banking Supervision and Regulation; Daniel P. Stipano, Deputy Chief Counsel at the OCC; David Fredsall, Deputy Superintendent, New York State Banking Department; Dennis P. Wood, Assistant Director, Compliance Outreach & Implementation, OFAC; Nicholas Farco, Assistant Vice President, Bank Supervision Group, Federal Reserve Bank of New York; Brigitte Lowe, BSA Compliance Specialist, ROUNDTABLE WITH LECG S WALT MIX A near capacity crowd of approximately 270 people attended the Institute s annual AML seminar on June 2nd. OCC; and Sheila Haney, Associate Director, Financial Industry Regulatory Authority. The seminar also featured a distinguished group of private-sector speakers, including (in alphabetical order): Kenneth L. Bachman, Partner, Cleary Gottlieb Steen & Hamilton LLP; Steven Beattie, Principal, Ernst & Young LLP; Laurence Birnbaum- Sarcy, Managing Director, KPMG LLP; Derek M. Bush, Partner, Cleary Gottlieb Steen & Hamilton LLP; H. Rodgin Cohen, Chairman, Sullivan & Cromwell LLP; Luigi L. De Ghenghi; Partner, Davis Polk & Wardwell; Thomas J. Delaney, Partner, Mayer Brown LLP; David DiBari, Partner, Clifford Chance US LLP; Paul Lee, Partner, Debevoise & Plimpton LLP; Michael Mancusi, Partner, Winston & Strawn LLP; Michael Shepard, Principal, Deloitte & Touche LLP; Stephen C. Strombelline, Managing Director, Head of Ethics and Compliance, BNP Paribas; and Ellen Zimiles, Chief Executive Officer, Daylight Forensic & Advisory LLC. (Available speaker presentations are posted on the Institute s web site at IIB LUNCHEON WITH OCC S DELORA JEE Walt Mix (center, facing camera), former Commissioner of the California Department of Financial Institutions and currently Managing Director in the Financial Institutions Practice of LECG, LLC, discusses financial market/regulatory developments at coffee/roundtable discussion in the Institute s Board Room on July 15 th. Delora Jee, Deputy Comptroller of the Currency for International Banking Supervision, talks with Bruce Richards, Managing Director, Head of Americas, National Australia Bank, and Chairman of the Institute s Audit Committee, at an informal luncheon meeting with representatives of the Institute s OCClicensed member banks on June 25th in the Institute s Board Room. 4

5 INSTITUTE S ANNUAL TAX SEMINAR HELD ON JUNE IN NEW YORK The Institute held its annual seminar on U.S. taxation of international banks on June at the City University of New York Graduate Center. Over 150 attendees heard governmental tax officials and private-sector experts (including representatives of Institute member banks and member firms of our Professional Liaison Committee) provide a detailed and authoritative review of the key tax issues and developments affecting internationally headquartered banking/financial institutions operating in the U.S. J. Richard Harvey, Jr., Senior Advisor to the Commissioner, Internal Revenue Service, gave the keynote luncheon address on June 18th. This year s seminar was co-chaired by Melissa Heise (Royal Bank of Scotland) and Todd Tuckner (UBS) and was organized in conjunction with the Institute s professional staff, Tax Committee Chairman Andrew Barkin (The Bank of Tokyo-Mitsubishi UFJ, Ltd) and Yaron Reich (Cleary Gottlieb Steen & Hamilton LLP), the Institute s Tax Counsel. Many of the excellent speaker presentations are available on the Institute s web site at Breakfast Regulatory Dialogue Top U.S. policymakers and senior officials from the European Commission and the European Central Bank have been invited to speak. As in past years, the Breakfast Regulatory Dialogue will provide an excellent opportunity to visit with key government officials and bankers as well as to exchange views on the major financial and regulatory issues under consideration in the United States and internationally. The 2009 Breakfast Regulatory Dialogue will be held in the Galata Room at the Elite World Hotel, a 5-star hotel in the Taksim district of Istanbul (Sehit Muhtar Cad.No: 42). INSTITUTE, CSBS HOLD U.S. REGULATORY/ COMPLIANCE ORIENTATION PROGRAM The Institute and the Conference of State Bank Supervisors (CSBS) co-hosted our annual U.S. regulatory/compliance orientation program for head office and recently arrived officers of international banks on July 28 th 29 th at the Association of the Bar of the City of New York (42 West 44 th Street). The Honorable Richard H. Neiman, New York State Superintendent of Banks, gave the opening keynote address, and Daniel A. Muccia, Senior Vice President in the Bank Supervision Group of the Federal Reserve Bank of New York, gave the keynote luncheon address. Following Superintendent Neiman s opening remarks was Angelo Aldana, General Manager of Mizuho Corporate Bank Ltd., who provided some perspectives as an international banker on the regulatory environment for doing business in the United States. The orientation program also featured other representatives from the Federal Reserve and the New York State Banking Department as well as leading banking lawyers, industry consultants and other private-sector experts. (Speaker presentations are available on the Institute s web site at The orientation program is designed to provide a broad, explanatory overview of the regulatory and compliance requirements applicable to the U.S. operations of internationally headquartered banks, together with practical insights regarding preparing for and dealing with the examination process. In addition to officers from the head office and those who have recently arrived in the U.S., the program is especially helpful to all personnel of our member banks who would benefit from a more thorough understanding of the U.S. regulatory/compliance system. A continental breakfast will begin at 7:30 a.m. and the formal program will take place from 8:00 a.m. to 9:30 a.m. The program will include questions and comments from the floor after the speakers formal remarks. An online registration form is available on the Institute s web site at 5

6 SCHEDULE OF EVENTS THROUGH MARCH 2010 All interested officers of member institutions are urged to put these dates on their calendars. Monday, October 5, :30 a.m. Breakfast Regulatory Dialogue with Government Officials, during the IMF/World Bank meetings at the Elite World Hotel in Istanbul. Tuesday, October 13, :00 noon Institute s Fall Membership Luncheon, at the Waldorf-Astoria Hotel. The Luncheon Speaker will be William C. Dudley, President of the Federal Reserve Bank of New York. Monday, October 19 - Tuesday, October 20, 2009 Annual Institute Seminar on Risk Management and Regulatory Examination/Compliance Issues Affecting International Banks, at the CUNY Graduate Center, 365 Fifth Avenue. Tuesday, November 10, :30 a.m. - 5:30 p.m. Institute Conference on U.S. Bankruptcy/ Resolution Issues and Cross-Border Implications for Internationally Active Banks, at the CUNY Graduate Center, 365 Fifth Avenue. Sunday Evening to Noon on Tuesday February 28 March 2, 2010 Institute s Annual Washington Conference, at the Four Seasons Hotel in Washington, D.C. This is the Institute s most important event of the year, bringing together senior U.S. and international policymakers and industry leaders who address key policy and business issues of importance to our members. Additional information and registration material will be available in the near future, but in view of all the critical developments taking place in Washington, we urge you to hold the dates on your calendars. Dates for additional seminars, workshops and other events will be provided in the near future 6