The Banking & Finance Law Report blog is devoted to highlighting news and trends in the banking and financial industry. Blog authors include attorneys primarily from Porter Wright’s Banking & Finance and Bankruptcy, Workouts & Reorganization practice groups. These nationally recognized teams provide analysis of issues related to regulatory compliance, business strategy, workouts and other matters affecting the way financial institutions operate within the banking industry and across business environments.

Recent Blog Posts

  • Association Health Plans—Proposed DOL Rules Create Potential Opportunity for Associations and Small Employers By Grant Stephenson    Our colleagues at Porter Wright’s employee benefits blog recently described a proposed rule that may be of interest to community financial institutions: proposed rules of the Department of Labor that may make it easier to join with other similar organizations to purchase employee health insurance.  Saving expenses is the name of this game of course.  This is something to watch.  The post appears here. ... More
  • Changes to Ohio Banking Law By Grant Stephenson    Last year, the Ohio Legislature made a number of important changes to Ohio’s statutory banking code. These are the first comprehensive changes in more than twenty years.  Most of the changes were effective January 1, 2018. The heavy lifting of the new Ohio banking bill is language that consolidates a number of existing financial institution charters into one single charter. Going forward, Ohio-chartered banks, savings and loans and savings banks will be operating under one common form of charter. So,... More
  • Tax Reform Will Affect Public Company Executive Compensation Arrangements and Related Proxy Statement Disclosures By Dave Tumen and Greg Daugherty    While opinions on the Tax Cuts and Jobs Act (the “Act”) vary, one thing everyone can agree on is that it is a game changer in many areas of law and business. An example of that is how the Act affects executive compensation arrangements of publicly traded companies.  The Act has amended Internal Revenue Code Section 162(m) so that if a public company pays more than $1 million in compensation to a “covered employee” in... More
  • DMCA agent requirements changing by end of year By Grant Stephenson    Bob Morgan, our colleague at Technology Law Source blog, provides perspective about the upcoming Digital Millennium Copyright Act (DCMA) agent filing change that takes effect Dec. 31. Read the full article here: DMCA agent requirements changing by end of year. ... More
  • Judicial Review of CAMELS Ratings – Banking Organizations Weigh In By Steven Hoying    Several trade associations for the banking industry have weighed in on a pending potential landmark case in the Northern District of Illinois regarding the possible judicial review of CAMELS (Capital, Asset Quality, Management, Earnings, Liquidity and Sensitivity) ratings of financial institutions. As noted by this blog earlier this year, the United States Court of Appeals for the Seventh Circuit, in Builders Bank v. FDIC, 846 F.3d 272 (7th Cir.2017), vacated a lower court ruling stating that CAMELS ratings... More
  • Potential Changes for HVCRE Loans By Grant Stephenson    In this blog, we have described some of the original concerns with the “high volatility commercial real estate” loan regulation as well as some suggestions for change. These rules apply to certain real estate loans for acquisition, development and construction. Recently, there have been suggestions that changes are possible regarding “high volatility commercial real estate” loans or “HVCRE” loans. Here is a quick reminder of the issues. Effective January 1, 2015, all banking organizations were required to allocate significantly more capital... More
  • 7th Circuit Overrules FDCPA Bona Fide Mistake Case By Grant Stephenson    In a divided en banc decision, the U.S. Circuit Court of Appeals for the Seventh Circuit has reversed (by vote of 7 to 4) a 2016 decision that a law firm when acting as a debt collector was shielded from liability under the Fair Debt Collection Practices Act when it relied on precedent that was subsequently overruled.  The prior decision was described in this blog here. The issue is the extent of the bona fide error defense that is... More
  • Ohio Amends the Good Funds Law Effective on September 29, 2017 By Tami Hart Kirby    The Good Funds Law went into effect on April 6, 2017 amending Section 1349.21 of the Ohio Revised Code to require stricter controls for all residential real estate transactions involving the sale, purchase, or refinance of such real estate. The law was passed as an attempt to combat and thwart fraudulent activities associated with the closings of such residential real estate transactions.  While the Good Funds Law only applies to residential real estate, some title companies have... More
  • New CFPB Rule Limiting Arbitration Clauses Faces Possible Congressional Veto By Steven Hoying    The enforceability of arbitration clauses in financial contracts took a hit from the Consumer Financial Protection Bureau (the “CFPB”) this week, but threatened congressional action may undo the effects of the CFPB’s newest regulation before it takes effect. The CFPB Rule  On Monday, July 10, the CFPB issued its final rule limiting pre-dispute arbitration agreements in certain financial contracts, in an effort to strengthen financial consumers’ access to class actions. The rule, codified at 12 CFR part 1040, imposes several... More
  • JUDICIAL REVIEW OF CAMELS RATINGS? By Grant Stephenson    Bankers will be interested in a recent appellate court order in a bank regulatory case. Their lawyers will be astonished by it because the ruling lights a flicker of hope in an area where there has been none for many years:  the judicial review of CAMELS ratings. The ruling came early in a litigation seeking to contest the imposition of a CAMELS rating of 4. A CAMELS rating is a summary rating regulators use to quantify the condition of... More