STANY members are actively involved in helping to promote the mission of both STANY and its parent organization, STA (Security Traders Association). Many of STANY's members serve on key STA committees, representing STANY's interests while supporting STA's work analyzing and interpreting the impact of news and legislation on the securities industry. The STA posts news releases plus the status of its monitoring and lobbying activities on its web site. We have provided you with direct access to these pages through the links on this page.
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Senate Finance Committee Hearing “The President's Proposed Fee on Financial Institutions Regarding TARP, Part 2.”
5/5/2010 12:00:00 AM
On May 4, the Senate Finance Committee held a hearing to consider “The President's Proposed Fee on Financial Institutions Regarding TARP, Part 2.” As described by Treasury Secretary Geithner, the proposed fee (also know as a TARP fee), would be assessed on financial institutions that have over $50 billion in assets and were eligible for the emergency assistance programs put in place to resolve the crisis. He stressed that the fee would capture assets held off-balance sheet, including derivatives. He stated that the fee was designed so that it would fall most heavily on firms that fund riskier activities with less stable forms of funding. He explained that firms would pay a fixed percentage of their assets adjusted for risk, minus their capital, insured deposits, and certain insurance policy reserves. Secretary Geithner further suggested that this fee would be “an important complement to the financial reforms now under consideration on the Senate floor.” Chairman Baucus (D-MT) stressed the need to determine who should pay TARP fees and what effect the fee would have on small business and the economy. He questioned whether or not banks would pass the cost of the fee on to customers. A number of Republican Committee members spoke in opposition to the proposed TARP fee. Ranking Member Grassley (R-IA), Senator Hatch (R-UT) and Senator Crapo (R-ID) expressed displeasure that GM, Chrysler, Fannie Mae, Freddie Mac and hedge funds like Paulson and Co., Inc. are not expected to be covered by (e.g., subject to paying) the TARP fee, but firms which did not receive TARP funds would be subject to the fee. Ranking Member Grassley (R-IA), Senator Enzi (R-WY), Senator Snowe (R-ME) and Senator Roberts (R-KS) expressed concern that the proposed fee would reduce the availability and increase the cost of credit for small businesses. Ranking Member Grassley (R-IA) and Senator Bunning (R-KY) argued that the President should have waited until 2013 to propose a plan to recoup TARP funds. They suggested that there will be more accurate estimates of TARP losses in 2013. Topics discussed at this hearing included, but were not limited to: (1) TARP Fee; (2) Auto Industry; (3) Ex-Ante Fees; (4) Off-Balance Sheet Assets; (5) Insurance Companies/Scope of the Fee; (6) Fannie Mae and Freddie Mac; (7) AIG; (8) Small Business/Community Banks; (9) Derivatives; (10) Conflicts of Interest; and (11) Financial Regulatory Reform. Insurance Companies/Scope of the Fee - Senator Bingaman (D-NM) asked how the fee would apply to insurance companies, including to those which own thrift(s). Secretary Geithner stated that in order to be covered by the fee a firm must meet two tests: 1) it must be larger that $50 billion in assets; and 2) it must have been directly eligible for the emergency programs offered by the Treasury, the FDIC and the Federal Reserve. He indicated that some insurance companies structured as thrift holding companies would be covered by the fee. Senator Kerry (D-MA) expressed concern that some institutions would be covered by the fee because a small percentage of their assets are in a thrift or broker-dealer. Secretary Geithner stated that the fee would apply to companies which are primary dealers, but not to companies whose broker-dealers were not primary dealers. Kerry asked if mutual funds which have thrifts purely for trust purposes would be covered by the fee. Geithner indicated that he was unsure of how to deal with such situations. For a more expanded report of the meeting click here: 05 04 10 - Senate Finance - TARP Fee(2) (1)
Williams and Jensen
Regulatory
Securities Industry News SEC Spotlight on Fair Value Accounting- October 2008 [click here] SEC Emergency Order Guidance for Market Participants- October 2008 [click here] SEC Temporarily Bans Short Selling in 799 stocks- September 18, 2008 [click here] STA's Special Report on Market Structure May 2008 [click here] STANY files Comment Letter with SEC on Section 12(g) of the Exchange Act- April 2008 [click here] STANY Files Comment on OTCBB Access Fees- May 31, 2007 [click here] SEC Approves Amendments to Rule 2320(a) Regarding Best Execution and New Interpretive Material 2320; Effective Date: November 8, 2006 [click here] Release No. 34-53024; File No. SR-NASD- 2005-095 [click here] STANY's Comment on NASD Notice to Members 05-61- TAF- October 31, 2005. [click here] SEC publishes Soft Dollar Guidelines for Comment- October 19, 2005 [click here] File No. SR-NASD-2005-089 Stany Letter [click here] SEC Extends De Minimis Exception for certain Exchange-Traded Funds from Trade-through Rule until June 28, 2006. [click here] Nasdaq extends Open Imbalance Information Dissemination [click here] SEC delays pilot period for suspension of Short sale Price Provisions [click here] NYSE updates Direct Plus proposal in filing to SEC [click here] Nasdaq announces new pricing schedule [click here] SEC Publishes New Reg SHO [click here] Nasdaq to Launch Opening Cross-- Here is everything you wanted to know about the Opening cross [click here] Reg. NMS Comment Letters Available On-Line [click here] SEC votes to propose that hedge fund advisers register under Investment Advisers Act- July 14, 2004 [click here] STA White Paper on U.S. Market Structure available on-line. [click here] SEC Proposed Short Sale Rule. See full test of proposed rule. October 29, 2003 [click here] STA President, SEC Chairman and market leaders Testify before the House SubCommittee on Capital Markets, Insurance and Government Sponsored Enterprises. See transcript of testimony.- October 30, 2003 [click here]
Stephen J. Nelson Esq.'s Weekly Editorial Stephen J. Nelson, Esq, a partner in The Nelson Law Firm and member of the Board of Directors of STANY writes a weekly editorial for Traders Magazine On-Line. Find recent editorials below. (Note: Mr. Nelson's opinions are his own and do not necessarily reflect the views of STANY's membership or the members of the STANY Board and staff.)
All News
Senate Finance Committee Hearing “The President's Proposed Fee on Financial Institutions Regarding TARP, Part 2.”
5/5/2010 12:00:00 AM
On May 4, the Senate Finance Committee held a hearing to consider “The President's Proposed Fee on Financial Institutions Regarding TARP, Part 2.” As described by Treasury Secretary Geithner, the proposed fee (also know as a TARP fee), would be assessed on financial institutions that have over $50 billion in assets and were eligible for the emergency assistance programs put in place to resolve the crisis. He stressed that the fee would capture assets held off-balance sheet, including derivatives. He stated that the fee was designed so that it would fall most heavily on firms that fund riskier activities with less stable forms of funding. He explained that firms would pay a fixed percentage of their assets adjusted for risk, minus their capital, insured deposits, and certain insurance policy reserves. Secretary Geithner further suggested that this fee would be “an important complement to the financial reforms now under consideration on the Senate floor.” Chairman Baucus (D-MT) stressed the need to determine who should pay TARP fees and what effect the fee would have on small business and the economy. He questioned whether or not banks would pass the cost of the fee on to customers. A number of Republican Committee members spoke in opposition to the proposed TARP fee. Ranking Member Grassley (R-IA), Senator Hatch (R-UT) and Senator Crapo (R-ID) expressed displeasure that GM, Chrysler, Fannie Mae, Freddie Mac and hedge funds like Paulson and Co., Inc. are not expected to be covered by (e.g., subject to paying) the TARP fee, but firms which did not receive TARP funds would be subject to the fee. Ranking Member Grassley (R-IA), Senator Enzi (R-WY), Senator Snowe (R-ME) and Senator Roberts (R-KS) expressed concern that the proposed fee would reduce the availability and increase the cost of credit for small businesses. Ranking Member Grassley (R-IA) and Senator Bunning (R-KY) argued that the President should have waited until 2013 to propose a plan to recoup TARP funds. They suggested that there will be more accurate estimates of TARP losses in 2013. Topics discussed at this hearing included, but were not limited to: (1) TARP Fee; (2) Auto Industry; (3) Ex-Ante Fees; (4) Off-Balance Sheet Assets; (5) Insurance Companies/Scope of the Fee; (6) Fannie Mae and Freddie Mac; (7) AIG; (8) Small Business/Community Banks; (9) Derivatives; (10) Conflicts of Interest; and (11) Financial Regulatory Reform. Insurance Companies/Scope of the Fee - Senator Bingaman (D-NM) asked how the fee would apply to insurance companies, including to those which own thrift(s). Secretary Geithner stated that in order to be covered by the fee a firm must meet two tests: 1) it must be larger that $50 billion in assets; and 2) it must have been directly eligible for the emergency programs offered by the Treasury, the FDIC and the Federal Reserve. He indicated that some insurance companies structured as thrift holding companies would be covered by the fee. Senator Kerry (D-MA) expressed concern that some institutions would be covered by the fee because a small percentage of their assets are in a thrift or broker-dealer. Secretary Geithner stated that the fee would apply to companies which are primary dealers, but not to companies whose broker-dealers were not primary dealers. Kerry asked if mutual funds which have thrifts purely for trust purposes would be covered by the fee. Geithner indicated that he was unsure of how to deal with such situations. For a more expanded report of the meeting click here: 05 04 10 - Senate Finance - TARP Fee(2) (1)
Williams and Jensen
Regulatory
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