Duane Morris – Duane Morris Banking and Finance Law

June 28, 2023 by Duane Morris

Department of Justice Adopts New Focus on Bank Merger Assessments

On June 20, 2023, Assistant Attorney General Jonathan Kanter addressed the Brookings Institute to discuss the 60-year anniversary of a seminal Supreme Court of the United States case concerning bank mergers: United States v. Philadelphia National Bank. Kanter used the opportunity to announce a new approach by DOJ to its assessment of bank mergers consistent with President Biden’s July 2021 Executive Order on Promoting Competition in the American Economy. The new approach removes predictability from the merger review process and adds uncertainty as to how DOJ will assess competitive harm in bank mergers in a similar fashion to DOJ’s recent withdrawal of support for three policy statements that had permitted certain “safety zones” in the healthcare sector.

To read the full text of this alert, please visit the Duane Morris website.

March 14, 2023 by Duane Morris

The Fed Creates New Program to Make Sure Banks Can Fufil Depositors’ Needs

In the wake of the failures of Silicon Valley Bank and Signature Bank, on March 12, 2023, the Federal Reserve Board announced that it will make available additional funding to eligible depository institutions to help assure that banks have the ability to meet the needs of all their depositors. The new lending program, called the Bank Term Funding Program (BTFP), is effective March 13, 2023. The BTFP offers recourse loans with maturity dates of up to one year to borrowers including banks, savings associations, credit unions and other eligible depository institutions.

To read the full Alert, visit the Duane Morris LLP website.

February 16, 2023 by Duane Morris

Acceptance and Benefits of International Arbitration Rising in the Banking and Finance Industries

The banking and finance industries have historically chosen litigation as their preferred dispute resolution, generally in the New York or London courts. Due to increased globalization and participation from emerging markets (e.g., Africa and Asia), international arbitration of banking and finance disputes is rising in popularity.

To read the full text of this post by Duane Morris attorney Nicole Mirjanich Moore, please visit the Duane Morris International Arbitration Blog.

November 7, 2022 by Duane Morris

In Recent Case, California Court of Appeal Invalidates Default Interest Provision on Nonconsumer Loan

The California Court of Appeal recently held that default interest and late fee charges are unlawful when they are assessed against the full outstanding principal balance on a partially matured note, regardless of whether the loan is a consumer or nonconsumer loan. At present, lenders operating in California should be prepared for borrowers to challenge the imposition of default interest applied against the entire unpaid principal balance in the event of a nonmaturity default.

To read the full text of this Duane Morris Alert, please visit the firm website.

May 12, 2022 by Duane Morris

CFPB Consent Order Could Upend Bank Garnishment Practices

On May 4, 2022, the Consumer Financial Protection Bureau published a consent order concerning Bank of America’s garnishment practices whereby Bank of America agreed to:

Refund at least $592,000 to its customers for garnishment fees that were improperly assessed;
Pay a civil penalty of $10 million; and
Submit a compliance plan for redressing unfair and deceptive acts in its garnishment processing.

The order has significant implications for the banking industry and the processing of garnishments. Accordingly, it would be prudent for all banks to undertake an immediate review of the following.

To read the full text of this Duane Morris Alert, please visit the firm website.

December 6, 2021 by Duane Morris

Roger Chari Pens Q&A Article on LIBOR Transition and Issues for Borrowers

Duane Morris LIBOR Transition Team leader Roger Chari recently published an article with Thompson Reuters Practical Law. He addressed several crucial questions that borrowers might have and gave some insight on navigating the options that are available as the end of LIBOR looms.

Read the article on the Duane Morris LLP website.

December 2, 2021 by Duane Morris

Best Practices for Fund Document Diligence in Fund Financing Transactions

By Anastasia N. Kaup and Melissa A. Sharp

It is critically important, for both lenders and borrowers, to confirm that the borrower is actually authorized to enter into a financing transaction, borrow money, and pledge assets as security for those obligations (if the financing is secured). If a borrower (entity) acts without express legal authority or beyond the stated scope of authority in its charter, operating agreement, or offering documents (collectively, the “Fund Documents”), the entity may be sued by its investors, the transaction may be voided by a court, the lender may suffer a loss, and/or other negative consequences may result. Continue reading “Best Practices for Fund Document Diligence in Fund Financing Transactions”

April 15, 2021June 17, 2021 by Duane Morris

New York Governor Signs the First LIBOR Transition Legislation into Law

On March 24, 2021, the New York Legislature passed Senate Bill 297B/Assembly Bill 164B, intended to reduce risks associated with the transition away from U.S. dollar (USD) LIBOR. The text of the legislation was initially presented by the ARRC last year. On April 6, 2021, New York Governor Andrew Cuomo signed the bill into law. The New York law has become the first legislative action relating to LIBOR transition and may serve as a model legislation for other states to follow.

While the UK Financial Conduct Authority, LIBOR’s regulator and administrator, confirmed that it would cease publication of representative USD LIBOR for the major USD LIBOR settings in mid-2023, which helps address a substantial portion of legacy contracts, there will be a significant number contracts that mature after mid-2023 and contracts that have no effective means to replace LIBOR upon its cessation. The New York legislation addresses those contracts without effective fallbacks that are governed by New York state law. It is expected to provide legal clarity for many New York financial products and agreements referencing USD LIBOR, reduce potential disputes surrounding the transition and lessen the burden on New York courts. Read on to see how our Alert, published today to learn more about the legislation!

Duane Morris’ LIBOR Transition Team: Roger S. Chari, Chair, Joel N. Ephross, Amelia (Amy) H. Huskins, Phuong (Michelle) Ngo, and Han Wang.

February 23, 2021February 23, 2021 by Duane Morris

CFPB’s 2-Part Final Rule on Fair Debt Collection Practices Act

The Consumer Financial Protection Bureau has issued its final rule implementing the Fair Debt Collection Practices Act by making revisions to Regulation F, 12 CFR part 1006.

Read about the first part of the rule, released on October 30, 2020.

Read about the second part of the rule, released on December 18, 2020.

October 13, 2020June 17, 2021 by Duane Morris

LIBOR Transition: The Protocol is Coming! The Supplement is Coming!

As we noted in our prior blog post over the summer, the IBOR Fallbacks Protocol and the IBOR Fallbacks Supplement for interest rate derivatives to be published by the International Swaps and Derivatives Association (ISDA) has been on hold while ISDA waits for a positive business review letter from the US Department of Justice (DOJ). This past Friday, ISDA issued a press release that it received the letter from the DOJ on October 1, 2020.

The DOJ letter does not foreclose the possibility that other regulators in Australia, Canada, the European Union and other jurisdictions may raise their own objections. However, the Board of Directors of ISDA has determined that it will release the Supplement and Protocol on Friday, October 23, 2020, and the Supplement and Protocol will take effect approximately three months later on Monday, January 25, 2021. The draft Supplement and draft Protocol have been posted for review, together with a FAQ, sample adoption amendments and descriptive outline.

Continue reading “LIBOR Transition: The Protocol is Coming! The Supplement is Coming!”