Author Archives: Joseph A. Smith, Jr.

The FDIC and Its Discontents: A Meditation and Proposal

By | January 4, 2022

The Federal Deposit Insurance Corporation (FDIC or Corporation) has recently made news in typical Washington, DC fashion: a fight over power.  A conflict between the FDIC Chairperson, a Trump Administration holdover, and the three members of the FDIC board – appointed by Democratic Administrations – over bank merger review protocols led to the Chairperson’s resignation.[1]  Accordingly, the… Read More »

Personnel is Policy: Financial Agency Leadership under the Biden-Harris Administration Six Months After the Inauguration

By | July 12, 2021

In a prior post I discussed potential changes to the leadership of Federal financial regulatory and supervisory agencies as a result of the 2020 Presidential election. This post reviews progress on that front through the first six months of the Biden-Harris Administration.  An updated scorecard is attached to this post for ease of reference.   In general, the Administration… Read More »

A TALE OF TWO AGENCIES: THE TRAVAILS OF THE CFPB AND FHFA — CHAPTER 4: THE SUPREME COURT DECISION IN COLLINS v YELLEN (nee MNUCHIN)

By | June 25, 2021

 In three prior posts (here and here and here) I analyzed two Supreme Court cases that challenged the constitutional legitimacy of the Consumer Financial Protection Bureau (CFPB) and Federal Housing Finance Agency (FHFA). In Seila Law v CFPB[1] the Court held that the agency’s Director is an executive officer of United States and is, accordingly, removable at will by the President. In Collins v Yellen and… Read More »

A TALE OF TWO AGENCIES: THE TRAVAILS OF THE CFPB AND FHFA — CHAPTER 3: THE AFTERMATH OF SEILA LAW

By | May 17, 2021

In two prior posts (here and here) I analyzed cases that challenged the constitutional legitimacy of the Consumer Financial Protection Bureau (CFPB) and Federal Housing Finance Agency (FHFA). In the CFPB case, Seila Law v CFPB,[1] the Supreme Court held that the agency’s Director is an executive officer of the United States and is, accordingly, removable at will by the President. This… Read More »

Duke Eviction Prevention Working Group Follow-up Letter to North Carolina Leaders

By | May 12, 2021

The following is a copy of a letter was recently sent to North Carolina Governor, Roy Cooper; North Carolina Senate President Pro Tempore, Phil Berger; and North Carolina House Speaker, Tim Moore. This letter is written to you on behalf of the Eviction Prevention Working Group.  The Working Group was formed under the sponsorship of the… Read More »

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

By | July 8, 2020

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… Read More »

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

By | January 9, 2020

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.… Read More »

Danske Bank Money Laundering Case Study

By | September 11, 2019

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… Read More »

Carillion Plc: A Governance Case Study from the UK

By | July 18, 2018

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… Read More »

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

By | March 21, 2018

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… Read More »