U.S. Bank Regulators at the Onset of the Financial Crisis

Table of Contents About the Author... vii Acknowledgments...ix Introduction...xi Table of Chapters...xv Chapter 1 U.S. Bank Regulators at the Onset of the Financial Crisis 1:1 Introduction... 1-2 1:2 Office of the Comptroller of the Currency... 1-3 1:2.1 Overview... 1-3 1:2.2 Regulation and Supervision of National Banks... 1-4 1:2.3 Preemption... 1-5 1:3 The Federal Reserve Board... 1-7 1:3.1 Overview... 1-7 1:3.2 Structure and Funding... 1-8 1:3.3 Establishing Monetary Policy... 1-9 1:3.4 Regulation of State Member Banks... 1-10 1:3.5 Regulation of Bank Holding Companies and Financial Holding Companies... 1-12 1:3.6 Regulation of Non-U.S. Banks... 1-14 1:3.7 Consumer Protection Regulations... 1-15 1:3.8 Banking Services: Payment Systems and Discount Window Lending... 1-15 [A] Payment Systems: Clearance and Settlement... 1-15 [B] Discount Window... 1-16 1:4 Federal Deposit Insurance Corporation... 1-16 1:4.1 Overview... 1-16 1:4.2 Deposit Insurance... 1-17 1:4.3 Regulation of State Non-Member Banks and Savings Associations... 1-19 1:4.4 Activities of State-Chartered Banks and Savings Associations... 1-19 1:4.5 Non-U.S. Activities of State Non-Member Banks... 1-20 1:4.6 Retail Deposit Funding by Non-U.S. Banks... 1-20 1:4.7 Bank Insolvency Regime... 1-20 (Fin. Servs. Reg., Rel. #3, 3/17) xvii

FINANCIAL SERVICES REGULATION DESKBOOK 1:5 Office of Thrift Supervision... 1-23 1:5.1 Overview... 1-23 1:5.2 Regulation of U.S. Thrifts... 1-23 1:5.3 Interpretation of HOLA and Preemption... 1-24 1:5.4 Regulation of U.S. Thrift Holding Companies... 1-24 1:5.5 Non-U.S. Activities of Savings and Loan Holding Companies... 1-25 1:6 The National Credit Union Administration... 1-26 1:6.1 Overview... 1-26 1:6.2 Role and Responsibility of the NCUA... 1-26 1:7 Federal Housing Finance Agency... 1-28 1:7.1 Overview... 1-28 1:7.2 FHLB Banks... 1-29 [A] Overview... 1-29 [B] Office of Finance... 1-30 1:7.3 Supervision and Regulation... 1-30 1:7.4 Enforcement... 1-31 Chapter 2 The Financial Crisis Critical Events 2:1 Introduction... 2-1 2:2 Time Line of the Crisis... 2-2 2:3 Details of Major Events... 2-6 2:3.1 Bear Stearns Liquidity Crisis and Merger with JPMorgan... 2-6 2:3.2 The IndyMac and Washington Mutual Failures and the Role of the Office of Thrift Supervision... 2-8 2:3.3 Conservatorship of Fannie Mae and Freddie Mac... 2-10 2:3.4 Too Big to Fail I: Lehman, Merrill, and AIG... 2-12 2:3.5 Too Big to Fail II: Citigroup and Bank of America... 2-15 Chapter 3 Initial Regulatory Responses to the Financial Crisis 3:1 Introduction... 3-2 3:2 Emergency Lending by the Federal Reserve... 3-2 3:2.1 Overview... 3-2 3:2.2 Term Securities Lending Facility... 3-3 3:2.3 Rescue of Bear Stearns... 3-4 3:2.4 Primary Dealer Credit Facility... 3-5 3:2.5 Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility... 3-7 3:2.6 Commercial Paper Funding Facility... 3-8 xviii

3:2.7 Term Asset-Backed Securities Loan Facility... 3-8 3:2.8 Summary... 3-9 3:3 Troubled Asset Relief Program... 3-11 3:3.1 Establishment... 3-11 3:3.2 TARP Programs... 3-13 [A] Capital Purchase Program... 3-13 [B] Capital Assistance Program... 3-14 [C] Targeted Investment Program... 3-14 [D] Asset Guarantee Program... 3-15 [E] Automobile Industry Financing Program... 3-15 [F] Making Home Affordable Program... 3-16 3:3.3 Management, Implementation, and Oversight... 3-17 [A] Oversight Bodies... 3-17 [B] Table of Contents Executive Compensation for TARP Recipients... 3-19 3:3.4 Outcome... 3-21 3:4 Temporary Liquidity Guarantee Program... 3-22 3:4.1 Overview... 3-22 3:4.2 Debt Guarantee Program... 3-22 3:4.3 The Transaction Account Guarantee Program... 3-25 Chapter 4 Systemic Regulation: Financial Stability Oversight Council 4:1 Introduction... 4-3 4:2 Antecedents... 4-3 4:2.1 Paulson Treasury Blueprint... 4-3 4:2.2 Geithner Treasury White Paper... 4-4 4:3 House and Senate Bills... 4-8 4:3.1 House Bill Wall Street Reform and Consumer Protection Act... 4-8 4:3.2 Senate Bill... 4-10 4:4 Enacted Legislation... 4-11 4:4.1 Overview... 4-11 4:4.2 Systemic Designation Authority... 4-13 4:4.3 Recommending Standards... 4-13 4:4.4 Systemic Designation Nonbank Financial Company... 4-15 [A] Overview... 4-15 [B] Exclusions from the Definition of Nonbank Financial Companies... 4-16 [C] Factors for Systemically Important Designation... 4-16 [D] Appeal and Review of Systemically Important Designation... 4-17 (Fin. Servs. Reg., Rel. #3, 3/17) xix

FINANCIAL SERVICES REGULATION DESKBOOK [E] Anti-Evasion Provision... 4-17 [F] Potential Exemptions... 4-19 4:4.5 Systemically Significant Bank Holding Companies... 4-19 4:5 Enhanced Prudential Standards... 4-20 4:5.1 Overview... 4-20 4:5.2 Requirements for Designing Heightened Prudential Standards... 4-20 4:5.3 Particular Prudential Standards: Inclusion of Off-Balance Sheet Activities in Computing Capital Requirements... 4-21 4:5.4 Contingent Capital... 4-22 4:5.5 Limits on Credit Exposures to Non-Affiliates... 4-22 4:5.6 Risk Committees at Public Nonbank SIFIs and Certain BHCs... 4-23 4:5.7 Resolution Plans ( Living Wills )... 4-23 4:5.8 Credit Exposure Reports... 4-24 4:5.9 Enhanced Public Disclosures... 4-24 4:5.10 Short-Term Debt Limits... 4-24 4:5.11 Stress Tests... 4-25 4:5.12 Early Remediation... 4-25 4:5.13 Kanjorksi Amendment: Asset Sales and Breakup Powers... 4-25 4:5.14 Leverage Limit... 4-26 4:6 Designating Particular Activities and Practices... 4-26 4:7 Registration of Nonbank SIFIs... 4-27 4:8 Intermediate Holding Companies... 4-27 4:9 Nonbank SIFIs: Reports, Examinations, and Enforcement... 4-28 4:10 Bank Holding Company Act Activities Restrictions and Acquisition Limits... 4-29 4:11 Application to Non-U.S. Financial Companies... 4-30 4:11.1 Overview... 4-30 4:11.2 Recommendation and Application of Standards to Non-U.S. Banking Entities... 4-31 4:11.3 Specific Modification of Systemic Risk Provisions... 4-31 4:11.4 Treatment of Non-U.S. Nonbank Financial Companies: Designation... 4-32 4:11.5 Extraterritorial Application for Non-U.S. Nonbank SIFIs... 4-32 4:12 Office of Financial Research... 4-33 4:13 FSOC Regulations Relating to the Designation Process...4-36 4:13.1 Overview... 4-36 4:13.2 Proposed Regulation on Systemic Designation... 4-37 xx

Table of Contents Table 4-1 Groupings of the Statutory Factors... 4-39 4:13.3 Final Regulation on Systemic Designation... 4-44 4:13.4 FSOC Final FOIA Regulation... 4-47 4:14 Federal Reserve Proposed and Final Regulations on Predominantly Engaged in Financial Activities for FSOC Designation Purposes... 4-48 4:14.1 Proposed Regulation Predominantly Engaged in Financial Activities... 4-48 4:14.2 Supplemental Notice of Proposed Rulemaking on Predominantly Engaged in Financial Activities... 4-55 4:14.3 Final Regulation Predominantly Engaged in Financial Activities... 4-57 4:14.4 Final Regulation on Significant Bank Holding Company and Significant Nonbank Financial Company... 4-61 4:15 FSOC Nonbank SIFI Designations... 4-62 4:15.1 Nonbank SIFI Designations of American International Group and GE Capital Corporation...4-62 4:15.2 Nonbank SIFI Designations of Prudential Financial and MetLife, Inc.... 4-64 4:15.3 MetLife s Court Challenge to Its Designation... 4-69 4:15.4 February 2015 Changes to FSOC Designation Procedures... 4-72 4:15.5 Enhanced Prudential Standards Order for GE Capital Corporation... 4-73 4:15.6 Rescission of Designation of GE Capital... 4-76 4:16 Title VIII Designation of Systemically Important Financial Market Utilities... 4-77 4:17 Federal Reserve Final Rule on Risk-Management Standards for the Operations Relating to the Payment, Clearing and Settlement Activities of Designated Financial Market Utilities... 4-80 Chapter 5 Orderly Liquidation Authority 5:1 Introduction... 5-2 5:2 Administration Antecedents... 5-2 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 Bills... 5-9 5:3.1 House Bill... 5-9 5:3.2 Senate Bill... 5-10 5:4 Orderly Liquidation Authority As Enacted... 5-13 (Fin. Servs. Reg., Rel. #3, 3/17) xxi

FINANCIAL SERVICES REGULATION DESKBOOK 5:4.1 Coverage Limitations: Financial Companies... 5-13 5:4.2 Designating a Financial Company As a Covered Financial Company... 5-14 5:4.3 Authority to Transfer Assets or Liabilities... 5-17 5:4.4 Duration of Receivership... 5-18 5:4.5 Funding of Title II Liquidation... 5-18 5:4.6 FDIC Super Powers : Bankruptcy Code Approach...5-20 5:4.7 Liquidation Priorities... 5-22 5:4.8 Officers and Directors... 5-25 5:4.9 Required Rulemaking, Reports, and Studies... 5-27 5:5 Post-Enactment Regulatory Actions... 5-28 5:5.1 FDIC Final Rule: 12 C.F.R. Part 380... 5-28 [A] Subpart A... 5-29 [B] Subpart B... 5-32 [C] Subpart C... 5-35 5:5.2 Final Rule on Treatment of Mutual Insurance Holding Companies... 5-38 5:5.3 Final Rule on Maximum Obligation Limitation... 5-40 5:5.4 Final Rule on Enforcement of Subsidiary and Affiliate Contracts by the FDIC As Receiver of a Covered Financial Company... 5-42 5:5.5 FDIC Definition of Predominantly Engaged in Activities That Are Financial in Nature or Incidental Thereto Under Title II... 5-44 5:6 The FDIC s Single Point of Entry Strategy... 5-45 5:7 ISDA Protocol and Proposed Rules on QFCs and Cross-Defaults... 5-49 5:8 Federal Reserve Final TLAC Rule... 5-51 5:9 Criticism of the OLA and SPOE... 5-56 Chapter 6 The Volcker Rule 6:1 Introduction... 6-2 6:2 Antecedents... 6-3 6:2.1 Prior Restrictions on Trading and Fund Activities... 6-3 6:2.2 Obama Administration Focus... 6-4 [A] Administration Financial Reform Efforts... 6-4 [B] Treasury Department Proposal... 6-5 [C] Merkley-Levin Proposal... 6-7 [D] Final Language... 6-7 6:3 The Volcker Rule Statutory Text... 6-8 6:3.1 Proprietary Trading Prohibition... 6-9 6:3.2 Private Fund Prohibition... 6-11 xxii

6:3.3 Anti-Evasion Provision and Systemically Important Nonbanks... 6-14 6:3.4 Effective Date, Conformance Period, and Illiquid Funds... 6-15 6:4 FSOC Study... 6-16 6:4.1 Findings... 6-17 6:4.2 Fundamental Principles to Guide Rulemaking and Implementation...6-17 [A] Five Fundamental Principles... 6-17 [B] Permitted Activities... 6-18 [B][1] Market-Making Activities... 6-19 [B][2] Risk-Mitigating Hedging... 6-19 [B][3] Underwriting... 6-20 [B][4] Loan Trading and Securitization... 6-20 [B][5] Asset-Liability Management... 6-20 6:4.3 Challenges in Implementing the Proprietary Trading Ban... 6-21 6:4.4 Supervisory Framework... 6-21 6:4.5 Activities by Insurance Companies... 6-24 6:4.6 Private Funds... 6-24 [A] Hedge Funds and Private Equity Funds... 6-24 [B] Similar Funds... 6-25 [C] Banking Entity... 6-25 6:5 Federal Reserve s Transition Rules... 6-28 6:5.1 Banking Entities... 6-28 [A] Conformance Period and Extensions... 6-28 [B] Additional Extension Period of Up-to-Five-Years... 6-29 [B][1] Illiquid Funds... 6-29 [B][2] Contractual Obligation to Be Invested Principally in Illiquid Assets... 6-31 [B][3] Effect of Illiquid Funds Definition... 6-33 [C] Table of Contents Process and Factors for Granting Extensions of Two-Year Conformance Period... 6-33 6:5.2 Nonbank Financial Companies... 6-35 6:6 Proposed Rules of the Federal Reserve, FDIC, OCC and the SEC... 6-36 6:6.1 Overview... 6-36 6:6.2 Proprietary Trading Prohibition... 6-36 [A] Definitions... 6-36 [B] Permitted Activity Determination... 6-38 [B][1] Market Making... 6-38 [B][2] Underwriting... 6-39 [B][3] Hedging... 6-40 [B][4] Trading in Government Obligations... 6-40 [B][5] Trading on Behalf of Customers... 6-41 (Fin. Servs. Reg., Rel. #3, 3/17) xxiii

[B][6] Trading by a Regulated Insurance Company... 6-41 [B][7] Trading Solely Outside the United States... 6-42 [B][8] When Permissible Activity Is Impermissible... 6-42 [C] Material Conflict of Interest... 6-43 [D] Compliance Program... 6-43 6:6.3 Private Funds Prohibition... 6-44 [A] Definitions... 6-44 [B] Fund Asset Management Activity... 6-45 [B][1] Overview... 6-45 [B][2] De Minimis Co-Investment Limits... 6-46 [C] FINANCIAL SERVICES REGULATION DESKBOOK Additional Categories of Permitted Fund Activities Outside Section 619(d)(1)(G)... 6-47 [D] Acquiring Fund Interests As a Hedge... 6-48 [E] Fund Activity Solely Outside the United States... 6-49 [F] Super 23A Provisions... 6-50 [G] Compliance Program... 6-50 6:7 Federal Reserve Statement of Policy Regarding the Conformance Period... 6-50 Chapter 7 Bank Regulatory Reform 7:1 Introduction... 7-3 7:2 Antecedents... 7-3 7:2.1 Paulson Treasury Blueprint... 7-3 7:2.2 Geithner Treasury White Paper and Proposed Legislation; Republican Alternative... 7-5 [A] Geithner Treasury White Paper and Proposed Legislation... 7-5 [B] Republican Alternative... 7-6 7:2.3 House and Senate Bills... 7-7 [A] House Bill... 7-7 [B] Senate Bill... 7-7 7:3 Abolition of the Office of Thrift Supervision and Thrift-Related Reforms... 7-9 7:3.1 Abolition of the Office of Thrift Supervision... 7-9 [A] Overview... 7-9 [B] Division of Previous OTS Supervisory and Rulemaking Authority... 7-9 [B][1] Federal Reserve... 7-10 [B][2] OCC... 7-10 [B][3] FDIC... 7-10 [C] OTS Actions/Material Post-Transfer Date... 7-10 7:3.2 Thrift-Related Reforms... 7-10 [A] Thrifts and Their Holding Companies... 7-10 [B] Regulation LL: Savings-and-Loan Holding Company Regulation... 7-12 xxiv

[B][1] Overview... 7-12 [B][2] Permissible Nonbanking Activities... 7-12 [B][2][a] Covered SLHCs Must Comply with FHC Requirements... 7-13 [B][2][b] Well Capitalized and Well Managed Standards... 7-13 [B][2][c] Affirmatively Electing Treatment As an FHC... 7-14 [B][2][d] Insurance Agency and Escrow Activities... 7-16 [B][3] Control Regulations... 7-16 [B][3][a] Control Determinations... 7-16 [B][3][b] Definition of Control... 7-17 [B][3][c] Federal Reserve Approach... 7-18 [B][4] Other Covered Issues... 7-18 [B][4][a] Application Processing... 7-19 [B][4][b] Notice of Change of Director or Senior Executive Officer... 7-19 [B][4][c] Prohibited Service at SLHCs... 7-19 [B][4][d] Management Official Interlocks... 7-19 [B][4][e] Investigative and Formal Examination Proceedings... 7-20 [B][4][f] Dividends by Subsidiary Savings Associations...7-20 [B][4][g] Qualified Stock Issuances... 7-20 7:4 Bank Holding Company Amendments... 7-20 7:4.1 Exemptions from Bank Definitions... 7-20 7:4.2 Supervision... 7-21 7:5 Bank Acquisitions New Restrictions... 7-23 7:5.1 BHC Act Section 3... 7-23 7:5.2 Deposit Cap on Other Insured Depository Institution Holding Companies... 7-24 7:5.3 Dodd-Frank Act Section 622 Concentration Limit Provision... 7-24 [A] Overview... 7-24 [B] FSOC Study... 7-25 [C] Table of Contents Bank Holding Companies Source of Financial Strength... 7-28 7:6 Nonbanking Activities and Acquisitions New Restrictions... 7-29 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 Regulation... 7-30 7:7.1 Overview... 7-30 7:7.2 Amendments to Section 23A and 23B of the Federal Reserve Act... 7-32 7:7.3 Transactions with Insiders... 7-34 7:7.4 Lending Limits... 7-34 7:7.5 Securities Holding Companies... 7-35 (Fin. Servs. Reg., Rel. #3, 3/17) xxv

FINANCIAL SERVICES REGULATION DESKBOOK 7:8 Enhanced Capital Requirements... 7-37 7:9 Capital Plans, Stress Tests, and Living Wills... 7-44 7:9.1 Overview... 7-44 7:9.2 Capital Plans and Stress Tests... 7-44 7:9.3 Living Wills... 7-56 7:9.4 Credibility Review... 7-59 7:10 Deposit Insurance Reforms... 7-64 7:10.1 Overview... 7-64 7:10.2 New Assessment Scheme... 7-65 7:10.3 Deposit Insurance... 7-68 7:11 Federal Reserve Reform and Emergency Stabilization... 7-68 7:11.1 Overview... 7-68 7:11.2 Section 13(3) Assistance... 7-68 7:11.3 Emergency Financial Stabilization... 7-70 7:11.4 Governance... 7-71 7:11.5 TARP... 7-71 Chapter 8 Investment Adviser and Securities Law Reforms 8:1 Introduction... 8-2 8:2 Investment Advisers Act Reforms... 8-2 8:2.1 Investment Advisers Act of 1940... 8-2 8:2.2 Final SEC Rules... 8-4 [A] Overview... 8-4 [B] Venture Capital Funds... 8-5 [B][1] Overview... 8-5 [B][2] Twenty Percent Basket for Non-Qualifying Investments... 8-6 [B][3] Borrowing, Providing Guarantees, or [B][4] Incurring Leverage... 8-8 Investors Redemption or Other Liquidity Rights... 8-9 [B][5] Private Fund... 8-9 [B][6] Grandfather... 8-10 [C] Private Fund Adviser Exemption... 8-10 [D] Foreign Private Adviser Exemption... 8-13 [E] Changes to Threshold for SEC Registration... 8-15 [F] New Family Office Exemption... 8-17 [G] New Recordkeeping and Reporting Obligations... 8-21 [H] [I] Reporting Requirements for Exempt Reporting Advisers... 8-23 Other Statutory Provisions Affecting Investment Advisers...8-24 xxvi

8:3 Securities Law Reform... 8-25 8:3.1 Investor Protection and Broker-Dealer-Related Provisions... 8-25 [A] Overview... 8-25 [B] Table of Contents SEC Study on Investment Adviser Standard of Care... 8-28 8:3.2 Self-Regulatory Organization Rules... 8-31 8:3.3 Securities Law Enforcement Provisions... 8-31 [A] Overview... 8-31 [B] SEC Final Whistleblower Rules... 8-34 8:3.4 Extraterritorial Jurisdiction of Antifraud Provisions... 8-35 8:4 Credit Rating Agencies... 8-36 8:4.1 Overview... 8-36 8:4.2 Governance and Compliance... 8-36 8:4.3 Penalties and Liabilities... 8-37 8:4.4 Conflicts of Interest... 8-38 8:4.5 Procedures and Methodologies Rules... 8-39 8:4.6 Disclosure... 8-40 8:5 Securitization Reforms... 8-41 8:5.1 Credit Retention Requirements... 8-41 8:5.2 Conflict of Interest Prohibitions... 8-43 8:6 Municipal Securities Reforms... 8-44 8:6.1 Municipal Advisors and the Municipal Securities Rulemaking Board... 8-44 8:6.2 Executive Compensation and Corporate Governance... 8-45 Chapter 9 Derivatives Reform 9:1 Introduction... 9-2 9:2 Antecedents... 9-2 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 Bills... 9-5 9:3.1 Over-the-Counter Derivatives Markets Act of 2009... 9-5 9:3.2 Frank Proposal... 9-9 9:4 Senate Action... 9-11 9:5 Enacted Legislation... 9-14 9:5.1 Overview... 9-14 9:5.2 Jurisdictional Allocations: Swaps, Security-Based Swaps and Mixed Swaps... 9-14 (Fin. Servs. Reg., Rel. #3, 3/17) xxvii

FINANCIAL SERVICES REGULATION DESKBOOK 9:5.3 State Law Preemption... 9-16 9:5.4 Regulated Market Participants: Swap Dealers and Major Swap Participants... 9-17 9:5.5 Revisions to Existing Definitions of Certain Market Participants... 9-18 9:5.6 New Mandatory Clearing of Swaps... 9-19 9:5.7 New Mandatory Swap Trade Execution Requirements... 9-21 9:5.8 Public Reporting of Swap Transaction Data... 9-21 9:5.9 Other New Requirements Concerning Swaps... 9-21 9:5.10 Capital and Margin Requirements... 9-23 9:5.11 Protection of Counterparty Funds and Property... 9-23 9:5.12 Position Limits and Large Swap Trader Reporting...9-24 9:5.13 Extraterritoriality... 9-25 9:5.14 Exchange Act Beneficial Ownership Reporting... 9-26 9:5.15 Conflicts of Interest... 9-26 9:5.16 Enforcement Authority, Insider Trading, Disruptive Practices and Whistleblowers... 9-26 9:5.17 Prohibition on Federal Assistance to Swaps Entities... 9-27 9:5.18 Effectiveness and Exemptive Authority... 9-29 9:6 Final Rulemakings: The First Two Years... 9-30 9:6.1 From Enactment to July 31, 2011... 9-30 9:6.2 From July 31, 2011 to June 30, 2012... 9-32 Chapter 10 Consumer Financial Protection Bureau 10:1 Introduction... 10-2 10:2 Antecedents... 10-2 10:2.1 Paulson Treasury Blueprint... 10-2 [A] Short-Term Recommendation... 10-3 [B] Long-Term Recommendation: Conduct of Business Regulatory Agency... 10-3 10:2.2 Geithner Treasury White Paper... 10-5 [A] Overview... 10-5 [B] Consumer Financial Protection Agency... 10-6 10:2.3 Administration and House Bills... 10-9 [A] Consumer Financial Protection Agency Act of 2009... 10-9 [B] House Bill... 10-11 [B][1] Consumer Financial Protection Agency... 10-11 [B][2] CFPA Authority... 10-11 [B][3] Federal Preemption of State Law... 10-12 xxviii

Table of Contents [B][4] Funding... 10-14 [B][5] Other Provisions... 10-14 10:2.4 Senate Bill... 10-14 [A] Overview... 10-14 [B] Bureau Within the Federal Reserve System... 10-14 [C] Federal Preemption of State Law... 10-15 [D] Durbin Amendment... 10-16 10:3 Enacted Legislation The Consumer Financial Protection Bureau... 10-16 10:3.1 Overview... 10-16 10:3.2 Authority... 10-17 [A] Promulgate Regulations... 10-17 [B] Information Collection... 10-19 [C] Covered Parties... 10-19 [C][1] Covered Persons... 10-19 [C][2] Financial Products or Services... 10-19 [D] Exempt Persons and Activities... 10-21 10:3.3 Preemption... 10-23 10:3.4 Funding... 10-25 10:3.5 Effective Date... 10-25 10:3.6 Durbin Amendment... 10-25 10:3.7 Other Provisions... 10-26 10:4 Regulatory Developments... 10-26 10:4.1 Overview... 10-26 10:4.2 Initial CFPB Developments... 10-27 10:4.3 Federal Reserve Final Durbin Amendment Rule...10-29 10:4.4 OCC Final Preemption Rule... 10-30 10:4.5 Final Remittance Transfer Rule... 10-32 10:4.6 Final Rules Defining Larger Participants of the Consumer Reporting and Debt Collection Markets... 10-36 Table of Authorities...T-1 Index... I-1 (Fin. Servs. Reg., Rel. #3, 3/17) xxix