Capabilities
Legislative and Public Policy

Financial Services

Our financial services practice in the legislative and public policy sphere offers clients important strategic advice and counsel based on our long experience and ties with key policymakers. Our lawyers have represented the financial services industry (both companies and trade groups) on a variety of matters relating to the Dodd-Frank Act, including Title I (systemic risk), the development of Title V (creation of the Federal Insurance Office and the Nonadmitted and Reinsurance Reform Act) and Title VI (regulation of savings and loan holding companies and the Volcker Rule). We have been closely involved with the recent efforts to reform the Dodd-Frank Act, including the Financial CHOICE Act as well as the Economic Growth, Regulatory Relief, and Consumer Protection Act.

Our professionals have also advised the insurance industry on a wide variety of matters including the Terrorism Risk Insurance Act of 2002, the National Flood Insurance Program, the recent "covered agreement" on insurance prudential matters between the US and the EU, as well as sanctions legislation including the Comprehensive Iran Sanctions, Accountability and Divestment Act.

In 2013 and 2014, our lawyers played a significant role in the enactment of the "Insurance Capital Standards Clarification Act of 2014" which amended the capital provision of Title I of the Dodd-Frank Act (the "Collins Amendment") and provided relief to insurance companies subject to the regulation and supervision of the Federal Reserve Board as either a depository institution holding company or as a "systemically important financial institution" (SIFI) designated as such by the Financial Stability Oversight Counsel (FSOC). More broadly, Arnold & Porter lawyers have substantial experience advising insurance companies which own depository institutions, and in advising non-bank financial institutions on issues related to potential designation as a SIFI by the FSOC, regulation by the Federal Reserve Board.

More recently our team secured a favorable tax treatment for a specific banking ownership structure in the Tax Cut and Jobs Act of 2017 (TCJA). Currently, our team is representing a significant banking client of the firm in connection with the proposed increase in the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) of the SIFI macroprudential threshold from $50 billion in assets to $250 billion in assets.

Our team is also advising significant ABS secondary market lenders and a trade association in connection with Congressional efforts to restore the "valid-when-made" principle following the Madden v. Midland Funding ruling and to address the "true lender" issue.

Experience:

  • Mid-sized bank subject to FDIC macroprudential supervision in connection with the proposed increase of the SIFI asset threshold from $50 billion to $250 billion in the Senate Dodd-Frank 2018 reform bill, S. 2155.
  • Mid-sized bank in securing a favorable tax treatment (pass-through rate) for a particular banking ownership structure.
  • Federated Investors, Inc., one of the world's largest managers of money market mutual funds (MMFs), in advocacy before the NAIC and state regulators to obtain "cash equivalency" treatment of MMFs in insurer financial statements.
  • Coalition to Insure Against Terrorism (CIAT), a broad-based business coalition of 85 major trade and professional associations, including the US Chamber of Commerce, National Association of Real Estate Investment Trusts, The Real Estate Roundtable, National Association of Manufacturers, and all the major league professional sports, following September 11th in fashioning and securing enactment of a Federal terrorism insurance backstop to the Terrorism Risk Insurance Act of 2002 (TRIA) and in subsequent TRIA reauthorization campaigns in 2005, 2007, and most recently in 2014-15.
  • The Real Estate Roundtable in preparing strategic plan for TRIA reauthorization in 2019-2020.
  • Lloyd's of London before Congress and the Executive Branch on a wide range of legislative and regulatory issues that would affect their trading position in the United States. Among current work, we drafted and are advocating for legislation relating to private flood insurance, which has thus passed in House Committee 53-0 and full House 419-0, as well as its inclusion in the current draft NFIP reauthorization bill.
  • Lloyd's of London in connection with Dodd-Frank Act Title V and subsequent successful efforts to secure a US-EU "covered agreement" on insurance/reinsurance prudential matters.
  • Lloyd's of London in negotiation, advocacy, and implementation of a variety of Federal statutes and programs, including TRIA, Oil Pollution Act financial responsibility, Dodd-Frank Act, CISADA, and other economic sanctions laws, aviation war risk insurance, anti-piracy measures, and reform of Superfund.
  • The Financial Service Roundtable in connection with the insurance modernization study mandated under the Dodd-Frank Act.
  • Federal Housing Finance Agency (FHFA) on insurance regulatory matters arising from their supervision of government sponsored enterprises, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac), the principal housing finance secondary markets in the US. These issues include mortgage insurance and the procurement and use of lender-placed insurance.
  • California Earthquake Authority in devising federal legislative proposal to improve balance sheet resiliency.
  • Dutch Association of Insurers in respect of proposals in recent Congresses that would, among other things, create a new cause of action for Holocaust survivors or kin to sue in federal courts the US affiliates of European insurers that were doing business during 1933-45.
  • Formation and licensing of risk retention groups (RRGs) and mutual insurers for a variety of industries and professions.

      • Major aviation insurance pool in securing favorable pool-level eligibility under TRIA.
      • Major global insurer in negotiations with the US Overseas Private Investment Corporation (OPIC) to provide underwriting services and reinsurance of stand-alone terrorism coverage for US direct investment projects overseas.
  • SwissRe affiliate in connection with US Treasury Department listing as an eligible issuer of surety bonds under various Federal programs. Similar representation of numerous insurers and reinsurers.

      • Major insurance intermediary professional association with respect to a Federal crop insurance program, optional Federal chartering and insurance regulatory modernization proposals.
      • Formation of Policyholders Benefit Corporation, jointly financed by the nation's private mortgage insurers (PMI), to assume run-off insurance obligations following insolvency of the country's largest PMI insurer during the S&L crisis.
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