Alerts

Financial Services 2018 Year-End Report

Alerts / March 27, 2019

Welcome to the 2018 Year-End Report from BakerHostetler’s Financial Services Industry Team. We are pleased to share our analysis of some of the key developments in the financial services industry in 2018 and our expectations for 2019. 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 the following:

  • A significant victory in the Supreme Court limited the jurisdiction of federal judges to second-guess decisions made by arbitrators as to their jurisdiction to hear claims in cases where the arbitration agreement allows arbitrators to determine arbitrability.
  • President Donald Trump and Congress repealed Consumer Financial Protection Bureau (CFPB) guidance promulgated during the Obama administration that provided that indirect auto lenders could face liability under the Equal Credit Opportunity Act (ECOA) for permitting and incentivizing dealer markup if such a policy led to discriminatory lending practices.
  • CFPB acting Director Mick Mulvaney made his mark on the agency after taking the reins from Richard Cordray, reorienting the agency’s mission and enforcement priorities, and even the agency’s name.
  • In the summer of 2018, the Office of the Comptroller of the Currency (OCC) announced that it would begin accepting applications for national bank charters from nondepository fintech companies engaged in the business of banking.
  • In 2018, the Alternative Reference Rates Committee (ARRC) convened by the Federal Reserve Bank of New York was reconstituted in connection with the implementation of a paced transition plan for the replacement of LIBOR (London Interbank Offered Rate) as a benchmark rate. The ARRC selected the secured overnight financing rate (the SOFR) as the recommended alternative reference rate to replace LIBOR.
  • The financial services industry saw steady growth in retail and energy Chapter 11 bankruptcy filings in the wake of increasing competition and declining margins.

We hope that you use our analysis and first predictions of what may be ahead for 2019 to navigate what is likely to be an unprecedented year of change.

Read the Financial Services Industry 2018 Year-End Report

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

Authorship credit: Amanda K. Baker, Damon C. Barhorst, Julie Singer Brady, Martina T. Ellerbe, Karl Fanter, Lars H. Fuller, Jessica L. Greenberg, Michael Iannuzzi, Laura E. Jehl, Benjamin M. Jewell, Patrick T. Lewis, Albert G. Lin, Yameel L. Mercado Robles, Gregory V. Mersol, Robert A. Musiala Jr., Jorian L. Rose, Dennis W. Russo, Douglas L. Shively, Matthew A. Tenerowicz, Sammantha J. Tilloton, Robert J. Tucker, Douglas A. Vonderhaar, Brett A. Wall, Keesha N. Warmsby and Justin T. Winquist

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.

Related Professionals

Blog

In The Blogs

Previous Next
Blockchain Monitor
New Blockchain Solutions Debut Amid Enforcement Actions, New FinCEN Guidance and Warnings of “Blockchain Fatigue”
May 17, 2019
In this issue: • Blockchain Solutions for Supply Chain and Digital Identity Announced Amid Warnings of “Blockchain Fatigue” • Blockchain Capital Markets Diversify Amid ICO Slumps; Regulators Issue New Warnings • FinCEN Issues Guidance, SIM...
Read More ->
Blockchain Monitor
New Blockchain Solutions Across Industries, Institutional Cryptocurrency Trading Announced, Major Cryptocurrency Exchange Is Hacked
May 10, 2019
• Supply Chain Initiatives Announced by Major Private and Public Sector Actors • New Blockchain Enterprise Applications Announced Across Industries • Cryptocurrency Products and Blockchain Systems Announced by Institutions and Startups •...
Read More ->
Blockchain Monitor
Exchanges Going Live, Supply Chain Initiatives Advance, Threats Continue as Arrests Target ‘Shadow Banking'
By Nicholas C. Mowbray, Robert A. Musiala Jr., Joanna F. Wasick
May 3, 2019
In this issue: • Cryptocurrency Exchanges Move Closer to Live Trading, New Stablecoins Announced • New Blockchain Initiatives Targeting Enterprise Use Announced • DoJ Arrests Operators of ‘Shadow Banking Services,’ Regulators Warn of Scams...
Read More ->
Blockchain Monitor
New Blockchain Solutions Announced Across Industries, Multiple Crypto Enforcement Actions Announced Across Jurisdictions
By Simone O. Otenaike, Diana J. Stern, Joanna F. Wasick
April 26, 2019
In this issue: • Banks Announce Blockchain Initiatives, Stablecoins Launch, France Passes New Law • Reports Detail Blockchain Solutions Across Industries, Provide New Data on Growth • New Reports Provide Details on Hacks, Ransomware and...
Read More ->
Blockchain Monitor
Manipulation Detected on ‘DEXes,' Regulations Develop, Industry Initiatives Advance, Hacks, Money Laundering and Enforcement Continue
By Marc D. Powers
April 19, 2019
In this issue: • Academics Detect Manipulation on ‘DEXes’ as Cryptocurrency Trading Expands • New Tokenized Securities Announced; Global Regulatory Regimes Develop • Food Supply Chain Initiatives Grow, Government Spending Expected to Rise...
Read More ->