Editor's Note: This is a monthly publication on economic trends and financial policy issues. In this publication you can read "The Longbrake Letter", an analysis of economic trends and conditions written by Bill Longbrake, as well as commentary on financial regulation and policy written by members of the law firm Barnett, Sivon & Natter, P.C., a Washington, DC based law firm that specializes in financial services law.

ISSUE: #16, August 2011

The Longbrake Letter
- Bill Longbrake
In spite of nearly universal optimism until a few weeks ago that better economic times were emerging, it is now apparent that the last two years were merely an interlude in an ongoing global financial crisis. We have now entered the next phase of the global financial crisis which began in 2007. This month's letter explores implications of European and U.S. sovereign debt problems for global growth and political stability and explains why monetary and fiscal policy options are limited.

In Case You Missed It…
- Bob Barnett
Treasury has now issued a final rule on behalf of CFPB without extensive comment on its authority to do so.

Why the Secretary of the Treasury Cannot Assume the Powers and
Duties of the CFPB Director

- Morton Rosenberg
The transition authority relied on by the Treasury Secretary to assume the duties and powers of the CFPB Director until such time as a nominee is appointed and confirmed is not supported by either the transition provision or the text and structure of the DFA; and if it does, it would be a violation of the Appointments Clause of the Constitution.

Legal Effect of Failure to Meet Statutory Rulemaking Deadlines
- Ray Natter
This article discusses the legal consequences of missing a statutory deadline to issue a final regulation.

Trade-off Between Flexibility and Liability
-Bob Barnett
Underwriters crave flexibility in the rules governing loan origination, and lender's litigators crave certainty. Plaintiff's attorneys crave the opposite in each case. When the penalties for violations are severe, the dilemma becomes even more pronounced.

The Status of the Federal Thrift Charter Post-Dodd-Frank
-Jim Sivon
This article reviews the status of the federal thrift charter following enactment of the Dodd-Frank Act and concludes that the value of the charter has been diminished.