Examples of Special Projects
Done for Clients

• During 2Q/2004, FedFin alerted clients to the significant changes in the regulatory climate for banks and their holding companies in the wake of the Riggs and UBS cases. Clients were also advised of the OCC's new stand on new-product risk, with an alert sent to ensure that clients managed this new requirement without adverse impact on their profitability and innovativeness. As always, a sharp eye was kept on client charter options as regulatory risk factors changed.
   
• During 1Q/2004, FedFin advised a major U.S. financial services firm on emerging reputational risks, focusing in particular on pending guidance from bank regulators and the SEC on structured finance. A new small-business credit enhancement structure was identified for a client, and another was advised on the business impact of proposed HUD rules affecting GSE affordable-housing requirements. Ongoing advice was provided to clients, with a particular focus on proprietary consulting, addressing the changing nature of Basel II and its M&A, strategic impact on U.S. firms. The SEC's "consolidated supervised entity" rule has major franchise impact, and a key client was advised on M&A impact.
   
• During 4Q, 2003, FedFin advised clients on the range of business implications of Fannie Mae, Freddie Mac and FHLB developments, focusing as always on the business impact of political developments. A new framework for assessing reputation risk management was constructed.
   
• Throughout 2003-2004, FedFin continued to advise a range of clients on the Basel II rules, focusing in particular on the operational risk standards, asset securitization and mortgage banking. Developed a strategic plan with particular attention to M&A for one of the nation's largest mortgage banks based on FedFin's estimate of Basel II final standards as implemented in the U.S.
   
• During 2Q/2002, FedFin advised a major U.S. government-sponsored enterprise on ways to privatize.
   
• During 3Q/2002, FedFin developed a private-sector alternative for housing finance to reduce reliance on government-sponsored enterprises.
   
• Throughout 2001-2002, FedFin advised banking and credit-risk mitigation clients on the pending Basel Accord and U.S. risk-based capital regulation. Identified business and policy implications of proposals and develop alternative regulatory solutions.
   
• From 1991-2001, FedFin advised a range of Japanese banks on ways to improve financial condition, focusing in particular on use of asset securitization and credit enhancement. Testified before the Japanese Diet on improved financial industry regulation (1991).
   
• Throughout 1995-97, FedFin advised the largest U.S. banks on appropriate market risk capital options through the Financial Services Roundtable predecessor organization (1995-97). Continue to counsel the organization on Basel-related issues.
   
• During 1994, FedFin advised the U.S. Office of the Comptroller of the Currency (the regulator of national banks) on ways to improve the national bank charter and industry efficiency.
   
• During the 1990s, FedFin counseled Australian investment banks on first mortgage-backed securities issue in that nation.
   
• Through various projects in the 1990s, FedFin advised several U.S. Federal Reserve Banks on ways to improve federal financial industry regulation (various projects in the 1990s).
   
• During various points in the 1980s, FedFin testified before the U.S. Congress on solutions to the Savings & Loan crisis, appropriate regulation of international risk exposures (1999), and proper risk-based capital standards (2001 and 2002).