Financial Services Reform Adopted in United States: Sweeping New Rules Will Affect All U.S. Public Companies
On July 21, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act), which in various iterations has been the subject of intense debate on Capitol Hill for much of the past year. The Act will bring about a major revamping of the U.S. financial regulatory landscape, including the creation of a new consumer protection bureau within the U.S. Board of Governors of the Federal Reserve System (the Federal Reserve), restrictions on the ability of banks to invest and trade in securities for their own account and new regulations governing derivatives.
While the Act represents sweeping financial reform, it also contains many provisions that are applicable to non-financial industry companies.
Kevin D. Cramer, James Lurie and I have published an Update regarding certain provisions of the Act that we believe may be of particular interest to our clients relating to:
- Corporate Governance;
- Executive Compensation; and
- U.S. Federal Securities Laws.
When reviewing this Update, please note that critical details remain to be addressed through the rule making process at various federal regulatory agencies. Thus, the full scope of the reforms contained in the Act will not be known for some time.
