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

A Tale of Two Guidances—New Principal Deputy Associate Attorney General Claire McCusker Murray Speaks on DOJ Efforts to Rein in Subregulatory Guidance

By Randall D. Guynn, Margaret E. Tahyar & Eric B. Lewin on May 23, 2019

There are two kinds of guidances, according to recently appointed Principal Deputy Associate Attorney General Claire McCusker Murray, which should be treated quite differently.[1] Her explanation is worth quoting at length: The key is to distinguish between two categories of guidance, the part that mirrors what the law requires and everything else. The rest might include, for example, language suggesting obligations that go beyond what the law requires, language that represents the agency’s…

FinReg

Bipartisan Support for Cannabis Banking Safe Harbor Reaches New High with Letter from Attorneys General

By Margaret E. Tahyar & Jeanine P. McGuinness on May 9, 2019

A bipartisan group of 38 state and territorial attorneys general has signed an open letter to Congress calling for legislative change for banking and financial institutions wishing to provide services to cannabis businesses. The letter describes the severe financial restrictions faced by cannabis businesses that operate legally under state law but which cannot access the financial system because of federal illegality. It is the clearest, most bipartisan support for federal cannabis banking relief yet. The…

FinReg

The Fintech Charter Goes into Hibernation

By Randall D. Guynn & Margaret E. Tahyar on May 3, 2019

A federal judge has put the fintech charter into the deep hibernation of a long litigation battle. It is back to the drawing board for those who might desire a fintech charter. Time to take another look at bank partnerships or industrial loan companies. Moreover, in light of the Federal Reserve’s proposed new rule on control, minority investments in general purpose national banks may be more feasible without causing the minority shareholders to become subject…

FinReg

Public Memorandum | Federal Reserve’s Proposed Rule on Controlling Influence: A Step in the Right Direction

By Luigi L. De Ghenghi, Randall D. Guynn, Margaret E. Tahyar, Christopher M. Paridon, Eric McLaughlin, Dana E. Seesel & Tyler Senackerib on May 2, 2019

The Federal Reserve has requested comment on a highly anticipated notice of proposed rulemaking to amend its regulatory framework for deciding when a company exercises a controlling influence over another company under the Bank Holding Company Act and the Home Owners’ Loan Act. The proposal is a welcome step in the right direction. It would provide greater transparency, certainty and predictability, and relax some of the limits and restrictions in the Federal Reserve’s existing practices…

FinReg

Banking and Cannabis — Updated Briefing on the SAFE Banking Act and STATES Act

By Margaret E. Tahyar & Jeanine P. McGuinness on April 18, 2019

There is now a serious effort underway by the usually divided Congress to find a way for the growing cannabis sector to enter the mainstream financial sector. Our newest visual memorandum updates our earlier briefing on the two legislative vehicles: the Secure and Fair Enforcement Banking Act (the SAFE Banking Act) and the Strengthening the Tenth Amendment Through Entrusting States Act (the STATES Act). Both bills have been recently introduced in the 116th Congress and…

FinReg

Practical Law: Financial Services and the US Cannabis Sector

By Margaret E. Tahyar & Jeanine P. McGuinness on April 5, 2019

We recently wrote an article for Thomson Reuters’ Practical Law outlining the state of play for the financial services sector’s relationship with the U.S. cannabis sector. Our article summarizes the dilemma arising from the widening gulf between static federal prohibitions and changing state laws. We consider and reject a number of possible solutions, such as federal agency guidance, appropriation limits, and public banking. We believe that changing the federal legislative framework is the best path forward…

FinReg

House Financial Services Committee Advances the SAFE Banking Act to the Full House

By Margaret E. Tahyar & Jeanine P. McGuinness on April 1, 2019

Cannabis banking legislation reached a new milestone last week. Following a markup session, the House Financial Services Committee on March 28 approved an amended SAFE Banking Act in a 45-15 vote. As our visual memorandum discussed in February, the bill offers a safe harbor and other protections for depository institutions serving cannabis-related businesses acting pursuant to the laws of states that have legalized marijuana. The bill would provide relief for banks considering banking the cannabis…

FinReg

Bank Pay Rules May Be Resurrected

By Kyoko Takahashi Lin, Margaret E. Tahyar, Veronica M. Wissel & Tyler Senackerib on March 12, 2019

U.S. federal banking regulators plan to revive efforts to regulate financial institution incentive compensation, as required under Section 956 of the Dodd–Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). The Wall Street Journal reports that the current effort is in its “early stages” and is being led by “top officials” of at least the Federal Reserve, the FDIC and the OCC. The article notes, “spokesmen for the Fed and OCC said their…

FinReg

Proposed U.S. Federal Cannabis Legislation: Briefing on the SAFE Act and STATES Act

By Margaret E. Tahyar & Jeanine P. McGuinness on February 8, 2019

Cannabis legislation for banking is now getting more serious attention, as it should. On Wednesday, February 13, the Consumer Protection and Financial Institutions Subcommittee of the House Committee on Financial Services will convene a hearing entitled, “Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses.” The hearing follows Chairwoman Maxine Waters’ remarks in November that “it’s inevitable we are going to have to talk about” banking the cannabis sector. Its timing is almost five…

Margaret E. Tahyar

A Tale of Two Guidances—New Principal Deputy Associate Attorney General Claire McCusker Murray Speaks on DOJ Efforts to Rein in Subregulatory Guidance

Bipartisan Support for Cannabis Banking Safe Harbor Reaches New High with Letter from Attorneys General

The Fintech Charter Goes into Hibernation

Public Memorandum | Federal Reserve’s Proposed Rule on Controlling Influence: A Step in the Right Direction

Banking and Cannabis — Updated Briefing on the SAFE Banking Act and STATES Act

Recommended Read: The Rise of Risk Management in Financial Institutions and a Potential Unintended Consequence – The Diminution of the Legal Function and the Role of Legal Departments

Practical Law: Financial Services and the US Cannabis Sector

House Financial Services Committee Advances the SAFE Banking Act to the Full House

Bank Pay Rules May Be Resurrected

Proposed U.S. Federal Cannabis Legislation: Briefing on the SAFE Act and STATES Act

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