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Inflation Reduction Act
Mnuchin Warns of Criminal Liability for PPP; Promises to Audit Large Loans
On April 28, Treasury Secretary Steven Mnuchin announced the SBA would be conducting audits of all businesses that received greater than $2 million in PPP loans, reiterating his warning from last week that businesses borrowing under the Paycheck Protection Program...
Class Actions Begin: Plaintiffs Target Banks for PPP Loan Processing
A number of class-action lawsuits have been filed targeting national and community banks for their processing of loans under the Small Business Administration’s Paycheck Protection Program (PPP). It is not surprising that disputes have already arisen, given the swift creation...
Creating a Roadmap for Banks to Mitigate Risk Under the SBA Paycheck Protection Program
On April 2, the Small Business Administration (“SBA”) issued the long-anticipated Interim Final Rule that sets out the current agency guidance regarding requirements that borrowers and lenders must follow in order to apply for and process loans, respectively, under the...
Texas Community Bank Holding Companies may Conduct "Virtual" Shareholder Meetings
Texas community bank holding companies may want to reconsider plans for upcoming annual shareholder meetings in light of health, transportation and other logistical issues raised by the spread of coronavirus disease 2019 (COVID-19). Although Texas corporations are required to hold...
Amid "Stay Home. Work Safe" Orders, Community Banks Remain Open for Business Under Designation as "Critical Infrastructure Sector"
On March 24, 2020, Harris County Judge Lina Hidalgo, in coordination with Houston Mayor Sylvester Turner, issued a mandatory “Stay Home. Work Safe.” order, effective at 11:59 pm March 24, to preserve public health and safety in Harris County in...
Signing of the Economic Growth, Regulatory Relief and Consumer Protection Act
On May 24, 2018, President Trump signed into law the Economic Growth, Regulatory Relief and Consumer Protection Act (the “Regulatory Relief Act”), the financial services regulatory reform bill that previously passed both the U.S. Senate and House of Representatives. Some...
Federal Reserve Proposes to Clarify and Reduce Supervisory Expectations on Boards of Directors
On August 9, 2017, the Board of Governors of the Federal Reserve (the "Federal Reserve") published proposed guidance on certain supervisory expectations for Boards of Directors of banks and holding companies. The proposal consists of three parts, and arose out...
Can Foreign Partners Now Exit Partnerships Tax Free?
In Grecian Magnesite Mining v. Commissioner 1 (“ Grecian Magnesite ”) the Tax Court held that a non-U.S. partner's gain from the redemption of its partnership interest was neither U.S. source income nor income effectively connected with a U.S. trade...
CFPB Rules Permitting Consumer Class Actions Against Financial Institutions Set to Take Effect Absent Action by Congress
In 2016, the Consumer Financial Protection Bureau (CFPB) announced that it was seeking public comment on proposed rules that would limit the effect of mandatory arbitration clauses for consumer finance transactions and allow consumers to initiate or participate in class...
Webinar: Anatomy of an IPO: What Every Bank Thinking of Going Public Needs to Know
Get a jump start on a successful planning process for you IPO. The “Anatomy of an IPO” will guide you along the path of preparing for, and living through, an IPO, as well as navigating the sometimes treacherous waters of...
Does Your Bank's Website Violate The ADA?
There has been a recent surge in claims brought by people with visual and hearing impairments alleging that company websites violate the accessibility standards of the Americans with Disabilities Act (ADA). Until now, these claims have typically been made against...
New CFPB Rules Threaten More Consumer Class Actions Against Financial Institutions
Recently, the Consumer Financial Protection Bureau (CFPB) announced that it is seeking public comment on proposed rules that would significantly change two aspects of consumer finance dispute resolution. First, the proposed rules limit the effect of mandatory arbitration clauses for...
FDIC Action Encourages De Novo Bank Charter Applications
On April 6, 2016, the FDIC rescinded its 2009 Financial Institutions Letter concerning enhanced scrutiny for newly insured FDIC-supervised depository institutions. The 2009 Financial Institution Letter, among other things, extended the de novo period for newly organized, state non-member institutions...
Delaware Chancery Court Dismisses Challenge to Merger of MLPs
Reaffirms Ability of Limited Partnerships to Modify Fiduciary Duties by Contract, Including Disclosure Obligations in Mergers In an opinion issued on March 29, 2016, the Delaware Chancery Court dismissed a challenge to the 2015 acquisition of Regency Energy Partners LP...
FAST Act Impact on Community Banks
Last week, President Obama signed into law a $305 billion bundle of legislation referred to as the FAST Act. While the FAST Act was conceived as a transportation bill, it came to contain a number of provisions targeted towards the...