Dramatic financial and economic events occurred in the last six months of 2008 that may fundamentally reshape the way the financial services industry operates and how it is regulated. These events have already had a major impact on the kinds of enforcement actions that bank regulators are bringing.
In that regard, in their annual review of bank enforcement and bank failure and resolution trends, Tom Vartanian and Larry Nesbitt report on the renewed focus of federal banking agency enforcement actions on core safety and soundness issues, particularly capital adequacy, liquidity, risk management, asset quality and management expertise. The authors note that current trends will also be impacted by the Department of the Treasury's Capital Purchase, Capital Assistance and Private-Public Investment Programs.
Attached is the annual review for your reference. Vartanian and Nesbitt, Bank Enforcement, Failure, and Rescue Trends: Regulatory Rubber Meets Rough Economic Road in Financial Crisis, 92 Banking Rep. (BNA) 846 (April 7, 2009).
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