US Firms Prepare for Heavy Workload as Dodd-Frank Act Comes into Force
August 2, 2010, The Lawyer

President Barack Obama signed the Dodd-Frank Act on 21 July 2010, which reforms US financial regulations, and is set to have a big impact on law firms and their clients.

White & Case's Ernest Patrikis, a New York based bank and insurance regulatory partner, when asked 'Do you expect to see work volumes rise as a result of the Dodd-Frank Act?' said, "I expect the Dodd-Frank Act to result in an increase in work over the next several years. Initially, questions will arise regarding the statuses and its ambiguities and alternative interpretations. The federal supervisory/regulatory agencies have been granted a great deal of discretion that will be reflected in proposed regulations. Those regulatory proposals will result in increased activity."

When asked 'What practice areas will benefit most from the bill and why?', Ernest said, "My partner derivatives partners have an enormous task in front of them advising on the portion of the Dodd-Frank Act affecting the over-the-counter market in derivatives. To the extent that a client company is designated as a systematic non-bank financial company, that client will need a good deal of assistance in preparing for Federal Reserve supervision. Our securitisation practitioners will also need to assist clients working their way through new requirements."

Ernest was also asked 'Will any practice areas need to be restructured to handle the implications of the act?', he replied, "I don't foresee any need to reorganise to address issues presented by the bill. What will be needed is to ensure good communications across practice groups and that started as the bill progressed through Congress."