In this latest blog, Katten’s managing partner of their New York office, Chris DiAngelo, examines the potential unintended impacts of the U.S. Supreme Court’s June 23, 2021 ruling in Collins v. Yellen where the structure of the Federal Housing Finance Agency (FHFA) was found to be unconstitutional.
Law360 writes that the Consumer Financial Protection Bureau filed a revised complaint, arguing against a second (and final) dismissal by the federal judge overseeing the case. The original dismissal was based on the unconstitutionality of the structure of the CFPB at the time the enforcement action was brought.
On Monday, May 10, SFA and SIFMA submitted an amicus brief in the Sentry liquidation actions, currently pending before the Bankruptcy Court for the Southern District of New York. The amicus is in support of the Defendants as they seek leave to appeal. SFA’s rationale for filing the amicus brief was to voice members’ views that the Bankruptcy Court’s ruling undermines the stability of the structured finance market.
SFA filed an amicus brief supporting the OCC‘s valid-when-made rule, providing the court with the perspective of our members and industry participants on the importance of the doctrine for liquidity in lending markets, availability of credit to consumers and businesses, and bank safety and soundness.
SFA’s response to the Fixed Income Market Structure Advisory Committee (FIMSAC) recommendation regarding ways to mitigate conflicts on interest in credit ratings focused on 1) enhanced issuer disclosure, 2) increased NRSRO disclosure, 3) bondholder ratification of issuer-selected NRSROs, and 4) our members’ general comments around potential conflicts of interest.
On December 9, 2020, the Supreme Court heard oral arguments in Collins v. Mnuchin, which arose out of litigation initiated by GSE equity arguing that the Third Amendment to the Preferred Stock Purchase Agreements—which govern the terms of the 2008 bailout of the GSEs—should be vacated due to the unconstitutional structure of the FHFA.
On Tuesday, October 27, the Office of the Comptroller of the Currency (OCC) issued its final rule that determines when a national bank or federal savings association makes a loan and is the ‘true lender,’ including in the context of a partnership between a bank and a third party.
On Monday, September 21, the U.S. District Court for the Western District of New York granted the defendants' motion to dismiss in the Petersen v. Chase case following a magistrate’s recommendation to dismiss the case in January.