Cabinet News & Views

In This Issue ...

From a noteworthy week at the FDIC to groundbreaking developments in sustainability reporting, we’ve got a diverse range of topics to explore this week.

I discuss FDIC Chair Martin Gruenberg’s intriguing insights into “The Resolution of Large Regional Banks,” where his remarks shed light on their resolution strategies and the implications for the industry at large.

My colleague Mercedes Tunstall discusses the FDIC incorporating crypto risks into its annual Risk Review, a major milestone in recognizing the influence of cryptocurrencies.

Peter Malyshev and Nikita Cotton dissect the recent DC Court ruling that recharacterized futures contracts as security futures.

Plus, we’ve included key industry updates, including the CFTC’s appeal to potential whistleblowers in the carbon markets, and more from my UK colleagues Alix Prentice, Sukhvir Basran and Duncan Grieve.

Daniel Meade
Partner and Editor, Cabinet News and Views

FDIC Chair Speaks on Resolution of Large Regional Banks

By Daniel Meade

Partner | Financial Regulation

On Monday, Federal Deposit Insurance Corporation Chair Martin Gruenberg gave remarks to the Brookings Institution on “The Resolution of Large Regional Banks.”

By Mercedes Kelley Tunstall

Partner | Financial Regulation

The Federal Deposit Insurance Corporation published its annual Risk Review this past Monday, providing an overview of banking conditions for 2022 through early 2023.

By Peter Y. Malyshev

Partner | Financial Regulation

By Nikita B. Cotton

Associate | Financial Regulation

Earlier this summer, in Cboe Futures Exchange, LLC v. Securities and Exchange Commission, the United States Court of Appeals for the District of Columbia issued an order vacating an exemptive order granted by the Securities and Exchange Commission in November 2020 that provided exemptive relief to the Minneapolis Grain Exchange, Inc. in respect of its listing of SPIKES Volatility Index Futures.

By Alix Prentice

Partner | Financial Regulation

In Policy Statement 23/4 on “Improving Equity Secondary Markets,” the UK’s Financial Conduct Authority sets out its final proposed amendments.

By Jason M. Halper

Partner | Global Litigation

By Peter Y. Malyshev

Partner | Financial Regulation

The Whistleblower Office of the Division of Enforcement of the Commodity Futures Trading Commission issued an alert on June 20, 2023 advising the public on how to identify and report potential violations connected to fraud or manipulation in the carbon markets.

By Sukhvir Basran

Partner | Financial Services

By Duncan Grieve

Special Counsel | White Collar Defense and Investigations

On July 11, 2023, the European Securities and Markets Authority issued a Public Statement outlining its expectations for sustainability-related disclosures to be incorporated into prospectuses. In its statement, ESMA recognized that sustainability-related matters are of importance to investors but as it currently stands, incoming legislation is either too far from being implemented (i.e., the Listing Act) or “is not expected to give details of the sustainability-related disclosures that should be included in prospectuses drawn up under the Prospectus Regulation.”

By Sukhvir Basran

Partner | Financial Services

Earlier this summer, the European Commission announced its adoption of the European Sustainability Reporting Standards for companies subject to the Corporate Sustainability Reporting Directive. The long-awaited ESRS represent a significant milestone in the implementation of the CSRD, which aims to update the existing EU sustainability reporting framework and expand the number of companies required to report on sustainability-related impacts, opportunities and risks.