The Board of Governors of the Federal Reserve System ("FRB") issued a final rule to align certain of its capital rules with the Basel III capital framework, which was adopted by the FRB earlier this year. The changes to the rule reflect modifications by the Organization for Economic Cooperation and Development regarding country risk classifications. The final rule also clarifies criteria for determining whether underlying assets are delinquent for certain traded securitization positions. Additionally, it clarifies disclosure deadlines, and modifies the definition of a covered position. FRB

Linked below is an article written by Energy Metro desk entitled "Drums Along the Potomac," which focuses on CFTC Commissioner O'Malia's speech regarding the CFTC's 2014 regulatory agenda. The article cited a number of sources as to their opinions regarding O'Malia's speech. The sources generally agreed with Commissioner O'Malia's view that the CFTC rule making process "has been anything but smooth and transparent." The article also notes a number of recent legal developments including the recent suit filed by three associations in a federal court that challenged the CFTC cross-border guidance

Senator Max Baucus, Chairman of the Senate Committee on Finance, recently released an International Tax Reform discussion draft prepared by the staff of the Finance Committee that contains a proposal to repeal the portfolio interest exemption for interest on debt issued by U.S. corporations. Originally enacted in 1984, the portfolio interest exemption eliminates a potential 30% withholding tax on interest paid to non-U.S. holders of debt issued by U.S. companies, thus encouraging investment by such persons in the United States. The exemption generally benefits residents and entities in

At the Consumer Federation of America's 26th Annual Conference, SEC Commissioner Luis Aguilar delivered a speech on investor protection, with a specific focus on new private placement rules, proxy voting and Regulation NMS ("Regulation of the National Market System"). Commissioner Aguilar stated that investor protection is fundamental, since investors are the ones who provide the capital that allows companies to grow and expand. According to Commissioner Aguilar, the first step in ensuring investor protection is "facilitating true capital formation" and not merely capital raising. Aguilar

SEC Commissioners Michael Piwowar and Luis Aguilar discussed their concerns regarding proxy advisory firms at the SEC's proxy roundtable. Commissioner Piwowar delivered the opening remarks at the Roundtable, expressing his concern that the 2003 SEC Proxy Voting release, which stated that "the duty of care requires an adviser with voting authority to monitor corporate actions and vote proxies," may have created a regulatory compliance mandate to vote every share. Additionally, Piwowar said that the subsequent SEC staff no-action letters "had the unintended effect of institutionalizing the use