European Banking Authority Announces 10-Point Action Plan On Cum-Ex/Cum-Cum

In Short: Since the Cum-Ex Files were released in 2018, the European Banking Authority (“EBA”) has been conducting research, through surveys sent to competent authorities, about the risks posed by dividend trading arbitrage schemes. The subsequent report showed the risks of Cum-Ex/Cum-Cum transactions and the inconsistencies in addressing these risks among Member States.

The Result: To resolve these divergences in the regulation of such transactions, the EBA has issued expectations of credit institutions and national authorities and […]

By | June 19th, 2020 ||

Saving Loans For REMICs

Under the REMIC rules, a mortgage loan ceases to be a good REMIC asset if the borrower replaces the real property collateral with government securities (known as defeasance) less than two years after the REMIC’s startup date. This typically is not problematic in a normal economic environment: most commercial mortgage loans prohibit defeasance for long enough to allow a lender to contribute the loan to a REMIC with more than two years to spare.

But as the […]

By | June 9th, 2020 ||

Banking Agencies Update “Host State Loan-to-Deposit Ratios” For 2020

The Federal Reserve Board, the FDIC and the OCC (collectively, the “Agencies”) updated “host state loan-to-deposit ratios” for 2020.

The ratios are used in assessing compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, which prohibits a bank from establishing or acquiring a branch or branches outside its home state primarily for the purpose of deposit production. Congress enacted section 109 to ensure that interstate branches would not take deposits from a […]

By | June 1st, 2020 ||