In recent years, the regulatory landscape for the banking and lending industries changed dramatically. These industries often rely on law firms to help them deal with regulatory issues.
Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010 in response to a need for financial reform as evidenced by the 2007 to 2010 financial crisis, now known as the Great Recession. This act introduced the most comprehensive and substantial financial regulatory changes since legislation passed after the Great Depression. Dodd-Frank extends to all federal financial regulatory agencies and all aspects of the nation’s financial services and banking industry. The law encompasses extensive regulation of financial markets with increased transparency of derivatives transactions, consumer protection reforms, increased Federal Deposit Insurance Corporation authority, enhanced accounting standards and stricter credit rating agencies regulation.
These regulations pertain to analyzing a financial institution’s funding, liquidity and resources during heavy economic downturns and require strategies for maintaining core operations despite financial distress. The purpose is to reduce the harmful repercussions of a financial crisis by planning ahead. Financial institutions must develop their contingency plans and report compliance annually.
To keep pace with changes in banking law, banking industry officials rely on skilled New Jersey banking law attorneys to explain their legal responsibilities and provide guidance for regulatory compliance. Experienced New Jersey banking law attorneys can also offer valuable representation during regulatory investigations and litigation.