Financial Services 2017 Year-End Report

Alerts / April 16, 2018

Welcome to the 2017 Year-End Report from our financial services industry team. We are pleased to share our analysis of some of the key developments in the financial services industry in 2017 and our expectations for 2018. Please contact any of the team members listed at the end of this report if you have questions or would like additional information on these or other issues as they unfold in the coming months.

The significant developments from the past year we focus on in this report include:

  • Continued uncertainty around the future of the Consumer Financial Protection Bureau (CFPB) in the wake of continued litigation over the constitutionality of the CFPB’s single-director structure and Acting Director Mick Mulvaney’s different approach to regulation.
  • The future of the "Payday Lending Rule" the CFPB promulgated in October 2017 in the final days of former Director Richard Cordray’s leadership, which will be reconsidered by the CFPB in 2018.
  • The use by Congress of the Congressional Review Act to disapprove the CFPB’s Arbitration Rule.
  • Trends in commercial and residential lending in the United States, including the rise in nontraditional financing vehicles for development projects.
  • The financial industry’s move away from the London Interbank Offered Rate (LIBOR) as a benchmark interest rate.
  • How the CFPB’s September 2017 final rule modifying the Home Mortgage Disclosure Act (HMDA) disclosure rule will affect mortgage lenders.
  • Trends in Chapter 11 bankruptcy filings in the industry, which saw steady growth in retail and energy filings in the wake of increasing competition and declining margins.

Perhaps the most significant trend we have seen is the rise of transformative blockchain technologies and digital currencies. We have created a Blockchain Technologies and Digital Currencies industry team, headed by partner Laura Jehl and Chief Information Officer Bob Craig, who are thought leaders in the legal and business issues arising from blockchain technologies. The team helps clients navigate the rapidly evolving regulatory environment associated with initial coin offerings (ICOs) and token generating events (TGEs), including corporate and securities matters, tax issues, and other regulatory hurdles. The Blockchain Technologies and Digital Currencies industry team works closely with the Financial Services team to address the opportunities and challenges associated with these exciting new technologies.

We hope that you use our analysis and forecasts for the rest of 2018 to help you navigate what is likely to be a year of unprecedented change.

For updates throughout the year, please visit the Financial Services Blog and the blogs sponsored by other practice teams, including the Class Action Lawsuit Defense and the Data Privacy Monitor blogs.

Authorship credit: Brett A. Wall, Patrick T. Lewis, Keesha N. Warmsby, Karl Fanter, Jorian L. Rose, Dennis W. Russo, Matthew A. Tenerowicz, Tera N. Coleman, Martina T. Ellerbe, Jessica L. Greenberg, Michael Iannuzzi, Benjamin M. Jewell, Dante A. Marinucci, Sean E. McIntyre, Clair C. Peña and Douglas A. Vonderhaar.

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Baker & Hostetler LLP publications are intended to inform our clients and other friends of the firm about current legal developments of general interest. They should not be construed as legal advice, and readers should not act upon the information contained in these publications without professional counsel. The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you written information about our qualifications and experience.

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