A Tale of Two Agencies: The Travails of the CFPB and FHFA — Chapter 2: The Seila Law Decision

The Federal Housing Finance Agency (FHFA) and Consumer Financial Protection Bureau (CFPB) were established to address distinct aspects of the Global Financial Crisis. The Home Ownership and Economic Recovery Act of 2008 (HERA)[1] created the FHFA to provide for enhanced and rigorous supervision of Fannie Mae and Freddie Mac. The Dodd-Frank Wall Street Reform and […]

A Tale of Two Agencies: The Travails of the CFPB and FHFA

Courtesy of Joseph A. Smith, Jr. The Federal Housing Finance Agency (FHFA) and Consumer Financial Protection Bureau (CFPB) were established to address distinct aspects of the Global Financial Crisis. The Home Ownership and Economic Recovery Act of 2008 (HERA)[1] created the FHFA to provide for enhanced and rigorous supervision of Fannie Mae and Freddie Mac. […]

Danske Bank Money Laundering Case Study

Courtesy of Lee Reiners and Joseph A. Smith Jr. This case study draws primarily—and in some instances quotes verbatim—from the “Report on the Non-Resident Portfolio at Danske Bank’s Estonian Branch” prepared for the Bank on September 19, 2018, by the law firm Bruun & Hjejle.[1] Additional details are derived from other sources, including Danske Bank […]

Carillion Plc: A Governance Case Study from the UK

Courtesy of Joseph A. Smith Jr. At year-end 2016, Carillion Plc (Carillion or the company) was, in the words of its annual report, “one of the UK’s leading integrated support services companies, with a substantial portfolio of Public Private Partnership projects, extensive construction capabilities and a sector-leading ability to deliver sustainable solutions.” [1] The company […]

What Should We Expect of Bank Directors? It Depends on Whom You Ask

Courtesy of Joseph A. Smith Jr. In August, the Board of Governors of the Federal Reserve (Fed) issued for comment a release entitled “Proposed Guidance on Supervisory Expectation for Boards of Directors” (Proposed Guidance).[1]  This note will briefly review the Proposed Guidance and the comments the Fed received on it.  I will focus primarily on […]

Reflections on Payday Lending

Courtesy of Joseph A. Smith Jr. Regime change at the Consumer Financial Protection Bureau (CFPB) has involved, among other things, issuance of a statement of intention to reconsider a rule to regulate payday, auto title, and other high-cost short-term lending (the Payday Rule).  Payday loans are made for fees that, when calculated on an annual […]

Response to the Federal Reserve’s Proposal to Enhance the Effectiveness of Boards of Directors

Courtesy of Joseph A. Smith Jr. On August 3, 2017, the Board of Governors of the Federal Reserve System (“Federal Reserve”) released a proposal regarding its supervisory expectations for the boards of directors of bank holding companies, savings and loan holding companies, state member banks, U.S. branches and agencies of foreign banks, and non-bank systemically […]

Wells Fargo Unauthorized Account Openings: A Case Study for Bank Board Directors

Courtesy of Joseph A. Smith Jr. and Lee Reiners This case study draws primarily – and in some instances quotes verbatim –  from the 113 page report of the Wells Fargo board’s independent investigation of retail banking sales practices.  The case study also relies on the Office of the Comptroller of the Currency’s report titled: […]