Recent SEC Action on Asset-Backed Securities and Shareholder Director Nominations
The Securities and Exchange Commission (SEC) recently took action on two issues of particular importance to the financial sector. Asset-Backed Securities In response to Sec. 943 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the SEC has issued a proposed rule on the disclosure for asset-backed securities. The rule would require additional disclosures by those who deal in asset-backed securities on both fulfilled and unfulfilled repurchase requests. The rule would also require national ratings organizations to include additional information in any credit rating report given to investors. For other related reports, including preliminary ratings, agencies must include information. Read More.
Dodd-Frank Act Will Fundamentally Shift Many Community Bank Operations
Signed into law this summer, the Dodd-Frank Wall Street Reform and Consumer Protection Act (hereafter referred to as Dodd-Frank or the Act) promises to bring massive change to financial regulatory agencies. In response to the economic recession, lawmakers sought to increase consumer protection, prevent a similar crisis in the future, and generally strengthen the national financial industry. The Act addresses these issues by making changes to both existing regulations and to the regulatory agencies that oversee and enforce them. While much of the regulatory heft of Dodd-Frank bears toward the nation’s largest financial institutions, the Act will ultimately have a significant impact on the way community banks do. Read More.