On February 7th the OCC issued the "Mortgage Banking" booklet of the Comptroller's Handbook. The updated booklet replaces a similarly titled booklet issued in March 1996 (and examination procedures issued in March 1998). The updated booklet also replaces Section 750, "Mortgage Banking," issued in November 2008 as part of the former Office of Thrift Supervision's Examination Handbook. The updated booklet provides guidance to examiners and bankers on assessing the quantity of risk associated with mortgage banking and the quality of mortgage banking risk management. OCC Bulletin.

On February 5th, the OCC published a bulletin on its proposed rule that would establish minimum standards for the design and implementation of a risk governance framework for large insured national banks, insured federal savings associations, and insured federal branches of foreign banks with average total consolidated assets of $50 billion or more. The proposal also would establish minimum standards for an institution's board of directors in overseeing the framework's design and implementation.

The OCC will host two workshops in Houston, Texas, on March 11-12, 2014 for directors of national community banks and federal savings associations. The "Compliance Risk" and "Risk Assessment" workshops are designed exclusively for directors of institutions supervised by the OCC. The compliance risk workshop focuses on major compliance risks and consumer protection regulations, such as the Flood Disaster Protection Act, including the recent Biggert Waters amendments, along with core elements of an effective compliance risk management program. The risk assessment workshop discusses the OCC's approach to risk-based supervision, and best practices to identify, measure, monitor and control risk. Focus areas include enterprise risk management, operational risk, and cybersecurity. OCC Press Release.

On February 7th, the Consumer Financial Protection Bureau announced the formation of a panel of small businesses to provide feedback on potential changes to mortgage information reported under the Home Mortgage Disclosure Act ("HMDA") and the launch of a new online tool that makes it easier to navigate the publicly available HMDA data. The Bureau believes that additional mortgage information could help federal regulators, state regulators, lenders, consumer groups, and researchers better monitor the market. It is also considering changes to make it easier for mortgage lenders to provide better information. CFPB Press Release. See also Reuters.

On January 31st, the D.C. Circuit addressed whether a borrower’s claim against the FDIC as receiver for a failed bank was subject to the administrative exhaustion requirements of the Financial Institutions Reform, Recovery and Enforcement Act ("FIRREA"). The Westbergs obtained a loan from Silver State Bank to build a house. After funds had been disbursed but before construction was completed, the FDIC was appointed the bank’s receiver. As receiver, the FDIC repudiated the loan while requiring the Westbergs to repay disbursed funds. The Westbergs submitted an administrative claim for costs resulting from construction delays caused by the FDIC’s repudiation of the loan, but did not seek relief from their repayment obligation. After the FDIC denied the claim the Westbergs filed suit. The D.C. Circuit, affirming dismissal, held that the Westbergs’ repayment claim was subject to FIRREA’s administrative exhaustion requirements because the claim stemmed from the FDIC-as-receiver’s act of repudiating the loan. It further found that plaintiffs failed to meet that requirement. Westberg v. FDIC.

On February 6th, Bloomberg discussed the testimony of financial services regulators before the Senate Banking Committee. Banking and treasury officials said that leverage ratios for U.S. banks will be higher than their international counterparts. Testimony. See also Hearings Webpage (with links to archived webcast and prepared testimony).

On February 6th, Ben Horowitz of the venture capital firm Andreessen Horowitz blogged about the time his firm Opsware almost became the subject of a SEC stock options backdating investigation but didn't thanks to a general counsel with "hippie sensibilities" who was "nearly allergic to corporate politics, showmanship, or any behavior that covered the truth." Hippie Sensibilities.

On February 6th, a federal jury found Mathew Martoma, a former SAC Capital portfolio manager, guilty on three counts of conspiracy and securities fraud for engaging in insider trading that allegedly earned SAC Capital $275 million. See, e.g., DealBook; Forbes.

On February 5th, Bloomberg summarized the testimony of five federal regulators before the House Financial Services Committee concerning the Volcker rule, the Dodd-Frank Act's prohibition against proprietary trading by deposit-taking banks. Witnesses, including SEC Chair Mary Jo White and Federal Reserve Board Governor Daniel Tarullo, discussed the agencies' creation of an interagency group to coordinate the implementation of the Volcker rule. Interagency Coordination. See also hearing webpage (with links to archived webcast and text of witness's prepared remarks).

On February 5th, the Wall Street Journal reported that Federal Reserve Board Governor Daniel Tarullo, testifying before the House Financial Services Committee, said that the five federal regulators implementing the Volcker rule are considering loosening the rule's provisions concerning collateralized loan obligations. Exemptions.

On February 4th, ABC News discussed a shareholder proposal New York Comptroller Thomas DiNapoli has submitted to two national banks. The proposal would require the banks to name the employees who could expose the banks to losses as a result of their portfolio activities and compensation structure. The banks have asked the SEC for permission to exclude the proposals as pertaining to ordinary business. Employee Risk.

On February 3rd, Bloomberg reported that the Justice Department is looking into the relationship between various financial firms and sovereign wealth funds. The investigation is examining whether the firms made payments to obtain the sovereign funds' business. Sovereign Wealth Funds.

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Winston & Strawn partner Bill Brewer will be honored at the Financial Industries Dinner, benefitting National Jewish Health, to be held March 18, 2014. Bill Brewer is co-chair of the Winston & Strawn's global finance practice, head of the firm's New York finance practice, and a member of the Executive Committee. Corporate partner John Kalyvas, also based in the New York office, serves as dinner treasurer of this year's event. Accolade.

Winston & Strawn is pleased to announce a webinar addressing the latest strategies for resolving Consumer Financial Protection Bureau actions, based on a two-year investigation that was recently closed by a Winston team without any enforcement action. The webinar will be held on Wednesday, March 5, 2014 at 1:15-2:45p.m. (Eastern). eLunch.

Winston & Strawn will host a webinar titled "Hot Issues for Directors: Cybersecurity and Volcker Rule—Director Oversight Responsibilities." This presentation will be held on February 20, 2014 at 12:00-1:30 p.m. (Central). During this 90-minute webinar, which is the fourth in Winston's Director Education Series, speakers share insights, respond to Q&A's, and provide valuable insight into the board room deliberations at financial institutions. eLunch.

Winston's Financial Services partner, Christine Edwards, has been named a "Client Service All-Star" in an annual report published by The BTI Consulting Group. The BTI Client Service All-Stars are chosen solely based on feedback from corporate counsel. Criteria for a high level of client service included client focus, exceptional understanding of the client's business, outsized value, legal skills and outstanding results. Accolade.