Financial institutions in the new regulatory environment: Opportunities, constraints and global challenges

September 21-22, Georgetown University

PwC recently held a regulatory reform conference with Georgetown University's McDonough School of Business. Keynote speakers included the Honorable Gary Gensler, Chairman, US Commodity Futures Trading Commission; Thomas Huertas, Executive Committee Member of the UK Financial Services Authority and Alternate Chair for the European Banking Authority; Marisa Lago, Assistant Secretary for International Markets and Development; and Deven Sharma, Advisor, McGraw-Hill Companies.

Agenda

Welcoming remarks and keynote address

Wednesday, September 21st

Welcoming remarks: 
Pietra Rivoli, Deputy Dean, Georgetown University

Keynote address:
Andrew Ross Sorkin, best selling author and New York Times columnist

Opening session remarks and keynote address

Thursday, September 22nd

Opening remarks:
Reena Aggarwal, Robert E. McDonough Professor of Finance, Georgetown University
Gary Meltzer, Managing Partner, Financial Services Regulatory Practice, PwC

Keynote speaker:
Thomas Huertas, Director, International Division, Financial Services Authority

Panel 1: Systemically important financial institutions: What will they need to do?

Moderator:
Reena Aggarwal, Robert E. McDonough Professor of Finance, Georgetown University

Panelists:

  • Gregory Baer, General Counsel for Corporate Law and Global Regulatory Affairs, JPMorganChase
  • Doug Roeder, Managing Director, Financial Services Regulatory Practice, PwC
  • Christopher Towe, Deputy Director, Monetary and Capital Markets Department, Interational Monetary Fund
  • Mark Van Der Weide, Senior Associate Director, Division of Banking Supervision and Regulation, Federal Reserve Board

Discussion:

  • Role and process of FSOC and the Federal Reserve
  • What makes a nonbank financial company a SIFI?—Assessing the four categories—hedge fund and asset management, insurance, specialized lenders and broker-dealers/ FCMs
  • Financial Market Utilities—Where are the lines being drawn for SIFI Status? What are the additional risk management standards for FMU SIFIs?
  • How is the Fed proposing to apply the enhanced SIFI standards to different types of financial institutions, especially on capital and liquidity?
  • How will foreign bank and nonbank SIFIs be treated—scope of global and home country coordination?
  • Coordination with the Basel Committee and the Financial Stability Board—will there be a separate category of global SIFIs with additional standards to meet?

Panel 2: Financial institution regulatory oversight: In practical terms

Panel 2: Financial institution regulatory oversight: In practical terms

Moderator:
Reena Aggarwal, Robert E. McDonough Professor of Finance, Georgetown University

Moderator:
Coryann Stefansson, Director, Financial Services Regulatory Practice, PwC

Panelists:

  • John Beaty, Partner, Venable LLP
  • Kevin M. Blakely, Senior Executive Vice President and Chief Risk Officer, Huntington Bank
  • Mike Brosnan, Senior Deputy Comptroller, Large Bank Supervision
  • Ned Pollock, Executive Vice President, Regulatory Affairs, TD Bank

Discussion:

  • How are the federal banking agencies organizing/reorganizing their supervisory and examination functions to deal with SIFIs, thrifts and their holding companies, and the transfer of much (but not all) consumer compliance functions to the CFPB? What do these changes mean for financial institutions? Will thrifts convert to bank charters and will some thrift holding companies sell their thrifts rather than meet new capital and supervisory requirements?
  • How will thrifts and their holding companies meet new reporting requirements based on traditional bank and bank holding company reporting forms? What types of reporting may be required by the Treasury Office of Financial Research—will it only affect SIFIs? What types of new reports may be required by the CFPB?
  • Capital: Impact of Basel 3 requirements and the Collins Amendment “floor” of bank capital requirements? How will the Collins requirements be met by firms previously exempt—thrift holding companies (including insurers owning thrifts) and intermediate US holding companies owned by foreign banks?
  • Will SIFI rules have a collateral impact on prudential standards for banks and insurers generally?
  • How will the agencies interpret and implement the new affiliate transaction, insider lending and lending limit rules?

Luncheon addresses

Keynote speaker:
Marisa Lago, Assistant Secretary for International Markets and Development, US Department of the Treasury

Luncheon speaker:
Deven Sharma, Advisor, McGraw-Hill Companies

Panel 3: The impact of new regulations on the capital markets

Moderator: 
Rohan G. Williamson, Professor of Finance and Stallkamp Faculty Research Fellow, Georgetown University

Panelists:

  • Sharon Brown-Hruska, Vice President, Securities and Finance Practice, National Economic Research Associates
  • Kathleen Cronin, Managing Director, General Counsel and Corporate Secretary, CME Group
  • Robert Colby, Partner, Davis Polk and Wardwell LLP
  • Robert Cook, Director, SEC Division of Trading and Markets
  • Chester Spatt, Pamela R. and Kenneth B. Dunn Professor of Finance, Tepper School of Business, Carnegie Mellon University

Discussion:

  • What is the impact of the Volcker regulations on proprietary trading, market-making, hedging and underwriting?
  • What’s left after Volcker in the way of permissible banking relationships with hedge and PE funds? Will institutions required to divest be doing so sooner or later? What are the costs of living with the pushout?
  • Impact on foreign operations of US banks. Will foreign banks have a competitive advantage?
  • What is the possible impact of Basel III on capital markets activities? Will more transactions move offshore?
  • What is the impact of derivatives regulations on the market? Will there be more a universal move toward standardization and clearing or will there always be a strong demand bespoke products? How will the economics change?
  • What are the different approaches/roles being taken by financial institutions on clearing and exchange trading?
  • What are the critical factors influencing the selection of counterparties and types of transactions?

Panel 4: Consumer regulations: A new consumer and new choices

Moderator: 
Richard Neiman, Managing Director, Financial Services Regulatory Practice, PwC

Panelists:

  • Jane Azia, Director of Non-Depository Institutions and Consumer Protection at the State of New York Banking Department
  • Oliver Ireland, Partner, Morrison & Foerster LLP
  • Adam J. Levitin, Professor of Law, Georgetown University
  • David Silberman, Assistant Director for Research, Markets, and Regulations, Consumer Financial Protection Bureau

Discussion:

  • CFPB organization, leadership and initial priorities—its role in overseeing mortgage servicing remedial efforts?
  • New examinations and transition to new oversight and new enforcement powers
  • Will the goal of simpler disclosures and agreements be possible if creditors have to comply with a variety of state laws because of additional burdens of establishing preemption?
  • What products or services are high-risk?
  • How are national banks and federal thrifts dealing with new preemption rules?
  • What is happening in ABS securitization and impact of new or proposed rules?
  • How are previously-unregulated firms coping with a new regulator?

Closing address and concluding remarks

Closing keynote address:
Gary Gensler, Chairman, Commodities Futures Trading Commission

Concluding remarks: 
Reena Aggarwal, Robert E. McDonough Professor of Finance, Georgetown University
Gary Meltzer, Managing Partner, Financial Services Regulatory Practice, PwC

 

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