United States: Finance and Banking

Federal banking regulators propose replacing the 2023 Third-Party Risk Management Guidance with a principles-based framework that scales oversight to actual risk magnitude and likelihood rather than prescriptive process requirements. The proposal eliminates mandatory contract terms, reduces inventory requirements for lower-risk relationships, and explicitly permits banks to accept third-party risk within their stated risk appetite without supervisory criticism.

The federal banking agencies have proposed new third-party risk management guidance that is more prescriptive than its emphasis on a “risk-based” approach might suggest. In addition to calling for risk-based oversight, the proposal identifies specific elements that banks should address in board-approved policies and throughout the life cycle of third-party relationships, including due diligence, contracting, ongoing monitoring, documentation, remediation, and termination.

In the world of banking regulation, corporate structure matters. One of the most significant structural designations a banking organization can achieve is that of a financial holding company (FHC). This post explains what an FHC is, how it differs from a standard bank holding company (BHC), and how a BHC elects to become one.

As AI infrastructure spending surges toward $697 billion in 2026, hyperscalers and compute providers are increasingly turning to debt, structured financing, and GPU-backed collateral to fund expansion. While demand projections remain bullish, a critical timing gap is emerging between capital deployment and cash flow generation, creating significant risks for lenders, sponsors, and operators across the ecosystem.

The 2025 restructuring of the Ardagh Group S.A. (Ardagh or the company) capital structure unleashed one of the most controversial—and ultimately consequential—“Restructuring” credit event determination processes...

On Friday, California Office of Health Care Affordability (“OHCA”) published proposed final regulations that implement a 2026 law that significantly expanded OHCA’s review authority over health care transactions involving private equity (“PE”) groups, hedge funds, and management services organizations (“MSOs”). Stakeholders involved in California health care transactions should re-assess whether their ongoing or contemplated transactions are implicated by these regulations, because newly covered transactions will need to comply with the 90-day advance notice requirement established in the original OHCA regulations.

A circuit split and new OCC regulations have created unprecedented uncertainty over whether federal law preempts state requirements that mortgage lenders pay interest on escrow accounts. With the Second Circuit finding preemption, the First and Ninth Circuits rejecting it, and ten states now challenging the OCC's nationwide preemption determination in court, mortgage lenders face a fragmented compliance landscape that demands jurisdiction-specific strategies and constant monitoring of rapidly evolving

Asset-based lending against in-transit inventory presents unique legal challenges as lenders navigate UCC Article 7 requirements, negotiable documents of title, and the emerging landscape of electronic bills of lading. This analysis examines how ABL lenders can structure security interests to protect their position when goods are moving through the supply chain, from traditional paper documentation to modern electronic platforms.

On August 10, the Washington DFI entered into a consent order with a mortgage services company resolving allegations that the company performed third-party residential mortgage loan processing...

The Securities and Exchange Commission has proposed rescinding Rule 206(4)-5, the pay-to-play rule that has governed investment advisers' political contributions since 2010. Chairman Paul Atkins argues the rule suppresses political speech and imposes unnecessary regulatory burdens, while critics question whether existing antifraud provisions adequately address conflicts of interest in government advisory relationships.

The SEC staff has issued new FAQs clarifying how crypto assets are classified under its five-category framework, addressing critical questions about staking receipt tokens, essential managerial efforts, and when crypto systems achieve functional decentralization. These interpretive guidelines provide crucial distinctions for determining when digital assets separate from investment contract treatment and offer practical guidance on buyback programs, promotional activities, and the role of trading platforms i

On August 18, 2026, the Securities and Exchange Commission (SEC or Commission) released its first regulation proposal addressing crypto assets, appropriately titled Regulation Crypto Assets...