Margaret E. Tahyar

Ms. Tahyar is a partner in Davis Polk’s Financial Institutions Group. [Full Bio]

Firm/Organization: Davis Polk & Wardwell LLP

Blogs: Briefing: Governance, Cyber Blog, FinReg

Latest Articles

Encouraging Innovation: Brokered Deposits—What Fintechs Need to Know to Partner with Banks under the FDIC’s Proposed Regulations

By John Banes, Jai R. Massari, Annette L. Nazareth, Gabriel D. Rosenberg, Margaret E. Tahyar, Eric McLaughlin & Greg Swanson

January 16, 2020

In a step forward for the digital transformation of banking and partnerships between banks and FinTechs, the FDIC released proposed changes to its brokered deposit regulations in late December 2019. The proposed changes are designed to update the regulatory framework as much as possible within the constraints of the existing statute, Section 29 of the Federal Deposit Insurance Act. For an overview of the parts of the proposal that would widen opportunities for banks, FinTechs…

FinReg

Visual Memorandum: FSOC Shift to an Activities-Based Approach Signals an Emphasis on the Risks to Financial Stability from Digital Transformation

By John Banes, Jai R. Massari, Annette L. Nazareth, Gabriel D. Rosenberg, Margaret E. Tahyar, Eric McLaughlin & Greg Swanson

January 15, 2020

The Financial Stability Oversight Council’s (FSOC) recently revised guidelines (the 2019 Guidelines) on how it will identify and address financial stability risks are a major shift from the guidelines it issued in the immediate aftermath of the Financial Crisis. The 2019 Guidelines draw upon lessons learned from FSOC’s ultimately fruitless attempts to designate nonbank financial companies as systematically important. Instead, the 2019 Guidelines focus on identifying and regulating systemically important activities rather than entities, conducting…

FinReg

Banking Hemp: The Banking Regulators Move Forward

By Margaret E. Tahyar & Suiwen Liang

December 4, 2019

For hemp-related customers, banks no longer need to file suspicious activity reports according to a guidance statement issued by the Federal Reserve, FDIC, OCC and FinCEN, in consultation with the Conference of State Bank Supervisors. The descheduling of hemp from the Controlled Substances Act eliminates the need for banks to file suspicious activity reports under the BSA solely because a customer participates in hemp production or cultivation in accordance with applicable law and regulations, including…

FinReg

Visual Memorandum: Final Tailoring Rules for U.S. Banking Organizations

By John Banes, Jai R. Massari, Gabriel D. Rosenberg, Margaret E. Tahyar & Greg Swanson

November 21, 2019

The U.S. banking agencies have completed one of the most important steps towards rebalancing the U.S. bank regulatory framework since the Dodd-Frank Act was passed in the wake of the 2007 – 2008 financial crisis. The agencies have adopted final rules to tailor enhanced prudential standards and U.S. Basel III capital and liquidity requirements for large banking organizations. These final tailoring rules implement section 401 of the Economic Growth, Regulatory Relief and Consumer Protection Act…

FinReg

U.S. Federal Banking Regulators Propose a Madden Fix

By Jai R. Massari & Margaret E. Tahyar

November 21, 2019

Since the 2016 Second Circuit decision in Madden v. Midland Funding, LLC,[1] banks and their non-bank lending partners have faced legal uncertainty about their ability to assign or transfer loans. The Madden decision and subsequent actions by state courts have called into question the “valid-when-made” doctrine, which stands for the proposition that a loan that is valid at its inception cannot become usurious upon a later sale or transfer to another person. For a…

FinReg

FDIC and Federal Reserve Board Request Comment on CAMELS Ratings

By Gabriel D. Rosenberg & Margaret E. Tahyar

October 21, 2019

The FDIC and the Federal Reserve Board have solicited public comment on the use of the Uniform Financial Institutions Rating System, more commonly known as CAMELS ratings. The release asks 10 questions, which focus on the ways in which the agencies use the CAMELS system, their consistency in doing so, and the implication of CAMELS ratings on expansion plans and enforcement actions. The release specifically states that it is not a proposal to modify the…

FinReg

“Off the Rack”: Federal Reserve Finalizes Tailoring Rules with Few Changes

By John Banes, Jai R. Massari, Margaret E. Tahyar, Daniel E. Newman & Greg Swanson

October 11, 2019

The Federal Reserve has finalized its rules to further tailor the regulatory framework for enhanced prudential standards and the U.S. Basel III capital and liquidity requirements applicable to domestic banking organizations and foreign banking organizations (Final Tailoring Rules). Compared to the proposed rules that the U.S. banking agencies issued in October 2018 (for domestic firms) and in April 2019 (for foreign firms), the Final Tailoring Rules make very few changes. We will publish visual memoranda…

FinReg

Cannabis Legalization? — Updated Briefing on the SAFE Banking Act, the STATES Act and the MORE Act

By Margaret E. Tahyar & Jeanine P. McGuinness

September 24, 2019

Congress now has three different cannabis bills and three different approaches before it. One approach, taken by the Secure and Fair Enforcement Banking Act (the SAFE Banking Act), is to focus specifically on the difficulties faced by the banking, insurance and payments sectors. Another approach, taken by the Strengthening the Tenth Amendment Through Entrusting States Act (the STATES Act), defers to state law, mandating that cannabis-related activities that are legal under state law should also…

FinReg

Better Late Than Never: SEC Proposes Guide 3 Update

By John Banes, Nicholas A. Kronfeld, Margaret E. Tahyar, Shane Tintle, Daniel E. Newman, Tyler Senackerib & Elizabeth S. Weinstein

September 23, 2019

In a long-awaited milestone, the SEC has proposed an update of Guide 3, the industry guide for banking organizations. The proposal eliminates a number of the current requirements under Guide 3 and streamlines many of those that remain. The three “new” credit quality ratios in the proposal are, in practice, already included in most registrants’ disclosures, and thus are not significant new requirements. Our memorandum includes a table comparing the disclosures under Guide 3 with…

FinReg

Davis Polk Comments on Federal Reserve’s Proposed Rule on Confidential Supervisory Information

By Margaret E. Tahyar & Eric McLaughlin

August 19, 2019

Navigating the outdated rules on confidential supervisory information has become increasingly difficult in the digital world because the rules have their origin in the paper-based world of 1967, when they were first enacted. In the meantime, the amount and type of information made available by the banking agencies to banking organizations, and vice versa, has increased by several orders of magnitude. We estimate that banking organizations send the Federal Reserve, just one of the banking…

Margaret E. Tahyar

Encouraging Innovation: Brokered Deposits—What Fintechs Need to Know to Partner with Banks under the FDIC’s Proposed Regulations

Visual Memorandum: FSOC Shift to an Activities-Based Approach Signals an Emphasis on the Risks to Financial Stability from Digital Transformation

Banking Hemp: The Banking Regulators Move Forward

Visual Memorandum: Final Tailoring Rules for U.S. Banking Organizations

U.S. Federal Banking Regulators Propose a Madden Fix

FDIC and Federal Reserve Board Request Comment on CAMELS Ratings

“Off the Rack”: Federal Reserve Finalizes Tailoring Rules with Few Changes

Cannabis Legalization? — Updated Briefing on the SAFE Banking Act, the STATES Act and the MORE Act

Better Late Than Never: SEC Proposes Guide 3 Update

Davis Polk Comments on Federal Reserve’s Proposed Rule on Confidential Supervisory Information

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