Minutes released from the Federal Reserve’s July 27-28 meeting indicate officials are nearing agreement to begin scaling back the central bank’s bond buying program before the end of this year. The Fed announced back in December 2020 that it planned to keep buying at least $120 billion in treasury and mortgage-backed securities each month to help stimulate the economy.
The Federal Reserve told a federal judge to not terminate LIBOR as requested by plaintiffs in a lawsuit, reinforcing that the ruling would pose a risk to financial stability and undermine years of global planning for a transition to alternative benchmark rates. In the federal lawsuit filed in San Francisco, plaintiffs assert the LIBOR benchmark is the work of a “price-fixing cartel.”
On August 3, the Biden Administration announced a new 60-day moratorium on home evictions. The order, issued by the Centers for Disease Control and Prevention (CDC), applies to areas with high COVID-19 cases, covers about 90% of the nation's population, and expires on October 3.
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.