Impact of the Credit Crisis on Banking Regulations
In recent months, the United States financial system has been rocked to its foundation. Bear Stearns, Lehman Brothers and AIG – all major financial institutions that collapsed virtually overnight. On an almost daily basis the Federal Reserve and Treasury Department have desperately struggled to stem the tide, pumping trillions of dollars of liquidity into frozen financial and credit markets. And recently Congress passed a $700 billion bailout package to purchase toxic securities from banks. The pace of changing has been stunning and deeply unsettling. This four part series will provide you a practical guide to the changes in the financial system, from the massive new Congressional bailout to the implosion of the housing sector, to selling toxic assets to the government and new changes in banking regulation.
SEGMENT 3: Impact of the Credit Crisis on Banking Regulations: New Rules of the Road
- Guarantees of bank debt
- Substantial changes to deposit insurance coverage
- Interbank lending
- Creation of Commercial Paper Funding Facility
- Substantial expansion of Term Auction Facility
- Payment on interest on reserves
- Much more
Kevin L. Petrasic, Paul, Hastings, Janofsky & Walker, LLP, Washington, D.C. Mr. Petrasic advises financial services firms and depository institutions on a wide array of regulatory, legislative, transactional and compliance issues. He has extensive understanding and experience working with the Federal banking agencies. Mr. Petrasic formerly served as special counsel to the Office of Thrift Supervision and as counsel to the U.S. House Banking Committee.
