Financial Services Legislative and Regulatory Update – March 25, 2013

From: National Law Review

Article By: Jason M. Rosenstock, Abby Matousek/Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Leading the Past Week

Social media regulatory guidance for U.S. banks: a road map for the finance industry

Editor’s Note:  For information about effectively intervening in federal cyber regulation, see Regulatory Cyber Security: The FISMA Focus IPD.

From: Reuters

By Margaret Paradis, Thomson Reuters Accelus Contributor

The pace of social media usage by the U.S. financial industry has begun to rapidly accelerate. One drag on broader and deeper usage, especially by banks, continues to be uncertainty about regulatory compliance standards. Not all segments of the industry have been moving at the same pace. The broker-dealers and insurance companies have forged ahead in this area, relying on issued regulatory guidance. Additionally, asset management is catching up with the benefit of regulatory guidance issued early in 2012. Banking organizations, however, have been acting without specific guidance in this area, creating an extra risk.

The Need for Economic Analysis in Financial Regulation


By Hester Peirce

The Chamber of Commerce released a new report on Tuesday on the importance of cost-benefit analysis in financial regulation.  It makes the point that such analysis is essential in the context of the massive Dodd-Frank rulemaking effort:

Cost-benefit analysis provides a regulatory template designed to ensure that, despite the accelerated pace, regulators will not cut corners but will engage in more rational decision-making, will produce better regulations, and will promote good governance.

Goldman Joins Citigroup in Expanding Cyber Threat Lists

From: Bloomberg

By Elizabeth Dexheimer

Goldman Sachs Group Inc. (GS) and Citigroup Inc. (C) stepped up warnings to shareholders about cyber attacks as the U.S. prodded banks and government agencies to bolster their defenses.

Online and mobile banking give new points of entry that can be used to disrupt or penetrate operations, the two New York- based firms said last week in annual regulatory filings. The companies said they’re vulnerable to tactics that overload websites to shut off public access, such as assaults that disrupted the nation’s largest lenders late last year.