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Our Attorneys

Federal Judge Enjoins Upcoming DOL Overtime Salary Basis Increase

On November 22, 2016, a federal judge in the Eastern District of Texas granted a motion for preliminary injunction filed by the State of Nevada and twenty other states (State of Nevada, et al. v. United States Department of Labor et al., 4:16-cv-00731 (E.D. Tx. Nov. 22, 2016)). This ruling applies nationwide.

The Court ruled on a preliminary basis that the DOL did not have authority to increase the FLSA salary minimum from $455 per week to $913 per week. As most employers know, this rule was set to take effect on December 1, 2016.

Verrill Dana expects the DOL will appeal this ruling to the Fifth Circuit and employers should understand the rule’s legality has not been finally determined. Verrill Dana will be monitoring and reporting on developments as they occur.


Financial Institutions . . . In the News

  • CEO Scott Budde of The Maine Harvest Credit Project plans to file applications in January to become a state-chartered credit union in Maine.  (Mainebiz 10.31.2016)
  • Banks sending elaborate gifts to businesses and individuals are a new scam in Maine.  (WCSH6 11.2.2016)
  • Gardiner, Maine received an historic block of buildings on Main Street from Camden National Bank for redevelopment.  (Central Maine 11.3.2016)
  • New rule is under review by the FDIC for institutions with more than two million accounts which would require timely access of deposits after an institution fails.  (The Hill  11.14.2016)
  • The Federal Reserve Bank of Boston’s President and CEO Eric Rosengren highly expects to raise interest rates in December.  (Reuters 11.15.2016)
  • Personal incomes are rising across all Maine counties but at a slower rate than the rest of nation according to new federal estimates.  (Central Maine 11.17.2016)
  • Chinese bribery case forces JP Morgan to pay $264 million in fines to federal authorities.  (Central Maine 11.17.2016)
  • Central Bank is on track to raise interest rates in December according to congressional testimony of Federal Reserve Chair Janet Yellen.  (BDN 11.18.2016)

Flood Insurance Rule Redux: Feds Reissue Proposed Guidance to Lenders on Accepting Private Flood Insurance

On Monday, a Joint Notice of Proposed Rulemaking was issued by five federal banking agencies seeking comment on new proposed rules addressing how regulated lending institutions should evaluate private flood insurance policies for loans secured by property within special flood hazard areas. The draft rules are intended to implement the Biggert-Waters Flood Insurance Reform Act of 2012, and they replace an initial set of draft rules promulgated July 2015 and published in the Federal Register (78 FR 65107).

Click to read more ...


Financial Institutions . . . In the News

  • U.S. Senators ask the Justice Department to investigate Wells Fargo executives on criminal charges.  (Bloomberg 10.6.2016)
  • The first 6 months of 2016 shows Maine credit unions exceeding $7 billion in combined assets.  (Portland Press Herald 10.12.2016)
  • The Federal Reserve is seeing signs that interest rates should be increased.  (Central Maine 10.12.2012)
  • Due to the acquisition of Lake Sunapee Bank by Bar Harbor Bancshares, an unspecified number of Lake Sunapee employees will lose their jobs.  (Valley News 10.15.2016)
  • According to the FDIC, the “unbanked” American population declined from 7.7 percent in 2013 to 7 percent in 2015.  (Central Maine 10.20.2016)
  • A deal is in the works for TD Ameritrade Holding Corp, and its largest stakeholder, TD Bank to buy Scottrade Financial Services, an online brokerage service, for $4 billion. (Bloomberg 10.23.2016)
  • The U.S. is slow to rollout EMV (Europay, MasterCard and Visa) chip cards creating a higher risk to consumers.  (Mainebiz 10.24.2016)
  • Bar Harbor Bank shareholders approve the acquisition of Lake Sunapee Bank Group which completes another step in acquisition process.  (Mainebiz 10.26.2016)

Federal Bank Regulators Seek Comments on "Enhanced" Cybersecurity Rules

Just one day after the Federal Financial Institutions Examination Council issued FAQs to help financial institutions utilize FFIEC’s Cybersecurity Assessment Tool, three federal banking regulators issued an Advance Notice of Proposed Rulemaking regarding “Enhanced Cyber Risk Management Standards.”

The rulemaking notice was issued on October 19, 201 by the Federal Reserve Board, the FDIC, and the OCC.  A copy of the notice can be found here

As proposed, the enhanced cybersecurity rules would not apply to community banks, but would apply to any of the following institutions as well as third parties who provide services to these institutions:  (1) depository institution and depository institution holding companies with assets of $50 billion or more; (2) US operations of foreign banking organizations with US assets of $50 billion or more; and (3) financial market infrastructure companies and nonbank financial companies supervised by the Federal Reserve Board.  These institutions were identified to the extent they provide “key functionality to the financial sector.”

The enhanced rules are being considered based on the reality that technology dependence is growing and the US financial sector is becoming more interdependent. As such, a cybersecurity induced failure of one major institution could impact the safety and soundness of other institutions.

The enhanced rules would fall within five different categories: (1) cyber risk governance; (2) cyber risk management; (3) internal dependency management; (4) external dependency management; and (5) incident response, cyber resilience, and situational awareness.  The proposed rulemaking includes 36 questions across the foregoing categories for which comments are being sought.

Comments are due January 17, 2017.