Dechert Wants Nonbank Designation Rule Barred

Law360, New York (February 25, 2011, 8:08 PM EST) -- A Dechert LLP partner said Thursday to expect litigation asserting that an oversight council created under last year's financial regulatory reform does not have authority to finalize a rule for designating systemically important nonbanks.

“I wouldn't be surprised to see litigation challenging that,” Thomas Vartanian, head of the firm's financial institutions practice group, said in a telephone interview.

In a letter sent Thursday to Treasury Secretary Timothy F. Geithner, Vartanian said the Dodd-Frank Wall Street Reform and Consumer Protection Act does not give the Financial Stability...
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