Expert Analysis

• Echoes Of '80s Thrift Crisis Are Present In Today's Bank Woes

  

  The current distress in the banking industry bears an uncanny resemblance to the thrift industry crisis of the 1980s, and while that collapse was a worst-case scenario, it provides lessons for understanding the fundamental economic forces at work today, says Alan Frankel at Coherent Economics.

• Treasury DeFi Report Offers Insight Into BSA Compliance

  

  In light of the U.S. Department of the Treasury's recent risk report on decentralized finance, companies operating in the space will need to consider how regulation of the Bank Secrecy Act may apply and how it may be possible to implement controls to meet requirements in spite of delivering services through new technologies, say attorneys at Cooley.

• Navigating The New ESG Whistleblower Landscape

  

  Companies and funds have recently been under increased scrutiny by the U.S. Securities and Exchange Commission and its ESG task force for their treatment of whistleblowers, so they should take steps to encourage a culture of internal disclosure and ensure they aren't impeding those coming forward to report wrongdoing, say Josh Margolin and Liam Murphy at Selendy Gay.

• 7 Constructive Ways Attorneys Can Spend The Deal Slowdown

  

  Transactional lawyers can stay productive despite the currently sluggish market for M&A and financing deals by investing nonbillable hours into a range of projects that will strengthen firms, build professional relationships and lay a strong foundation for future work, says Brian Kerwin at Duane Morris.

• Opinion

  Attorneys Should Have An Ethical Duty To Advance DEI

  

  National and state bar associations are encouraging attorneys to apply diversity, equity and inclusion practices in the legal profession and beyond, and these associations should take it one step further by formally recognizing ethical duties for attorneys to promote DEI, which could better the legal profession and society, says Elena Mitchell at Moore & Van Allen.

• SVB Collapse Reinvigorates Bank Accounting Debate

  

  Silicon Valley Bank's sudden collapse revives questions over whether fair value or amortized cost accounting is the most appropriate for banks' financial reporting — a controversy that's crucial for understanding what information could have helped market participants better understand SVB's financial condition, say consultants at Analysis Group.

• Data-Driven Insights Are Key To Attracting Today's Clients

  

  As law firm growth slows and competition for clients increases, modern firms must rely on robust data analytics to develop the sector-based expertise and industry insights that clients increasingly prioritize in relationships with counsel, says Lavinia Calvert at Intapp.

• 5 Issues For Execs To Consider In SEC Cyber Rule Proposals

  

  The U.S. Securities and Exchange Commission's recently proposed cybersecurity rules are an attempt to harmonize requirements across all the entities the agency regulates, but the one-size-fits-all approach could leave funds, broker-dealers and other market participants in a perilous place, says Rick Borden at Frankfurt Kurnit.

• Planning For A Potential Dodd-Frank Revamp Post-SVB

  Excerpt from Practical Guidance

  

  An overhaul of the previous rollback of Dodd-Frank may occur in the near future, meaning banks that could be bumped up to a more restrictive category under the act's enhanced prudential standards should prepare for more frequent supervisory stress tests and stringent liquidity requirements, says Eric Yoon at K&L Gates.

• Takeaways From SEC Staff's Latest Reg BI Expansion

  

  The U.S. Securities and Exchange Commission's recent staff bulletin reiterating the standard of conduct for broker-dealers is as substantive as Regulation Best Interest itself, and when combined with existing requirements, the standards begin to look more onerous than the fiduciary duty owed by investment advisers, say attorneys at Skadden.

• Ghosting In BigLaw: Why Better Feedback Habits Are Needed

  

  Not giving assignments or constructive criticism to junior associates can significantly affect their performance and hours, potentially leading them to leave the firm, but partners can prevent this by asking the right questions and creating a culture of feedback, says Rachel Patterson at Orrick.

• Why Social Media Shouldn't Count As 'Investment Of Money'

  

  The U.S. Securities and Exchange Commission's recent complaint against a crypto entrepreneur and his companies includes claims that social media contests for the entities' tokens are considered investments of money, but it's hard to see how incentivizing behaviors in exchange for a chance to receive tokens could qualify as investments based on case law, say attorneys at Debevoise.

• Tips For Negotiating With A Swap Dealer In Distress

  

  The rights of a party to terminate a qualified financial contract with a collapsing bank can be complicated, but ensuring possession of an executed guarantee and having relationships with more than one swap dealer can absorb some of the economic and operational fallout of dealing with a swap counterparty in distress, says Elanit Snow at Proskauer.

• High Court Decision Casts Doubt On FTC, SEC Proceedings

  

  The U.S. Supreme Court's recent decision that a private party sued by the Federal Trade Commission or U.S. Securities and Exchange Commission could sidestep agency proceedings by suing in federal district court calls into question the constitutionality of enforcement actions brought before an administrative law judge, say Douglas Paul and Ildefonso Mas at Akerman.

• Get Ready For IRS Criminal Crackdown On Crypto

  

  Recent developments at the IRS, from a new operating plan to the announcement of a centralized data center, signal that the agency is ramping up criminal enforcement against those using digital assets to evade tax liabilities — and given its high conviction rate, companies and individuals must prioritize compliance, say attorneys at BakerHostetler.