Dodd-Frank’s “Living Will Rule” and the Impact on Financial FirmsExclusive Interview with
Walter J. Mix III, Director, Berkeley Research Group
While the Dodd-Frank Act has had a broad impact on banking, one of the key aspects is the “Living Will Rule,” which seeks to limit the risks of “too big to fail” financial institutions in the United States.
In this exclusive LegalMinds/NASDAQ Securities & Capital Market Series interview, Walter Mix III, a former bank regulator and Director of Berkeley Research Group, discusses the rule and it’s impact on U.S. financial institutions, as well as foreign banks operating in the U.S .
“The largest banks have already started working on their living wills as of 2010,” says Mix. “The next tier down have recently begun planning their implementation of living wills. The timeline is for 2013 for every bank to be included.” According to Mix, the banks are “required to show every aspect at a very, very deep level of its banking operations and to create a strategic approach to unwind the institution in the event that it faces insolvency.”
In this video interview filmed at the NASDAQ MarketSite in Times Square, he outlines the key elements of the resolution plan and details what companies are covered, filing timelines and the strategic implications of the rule.
Also, discussed is the impact of the rule on the capital markets, which he believes will be similar to the way bank M&A will be affected. “You can expect to see a highlighting of the different risk areas of an institution and this information will be made available to investors so that they’ll be able to make more intelligent decisions about their investments and about acquisitions,” says Mix.
As far as what lies ahead, he adds that “at the end of the day what we’re hoping to see is enhanced risk management at the banks, and better corporate governance at the banks.”
Walter J. Mix III is a Director and heads the financial services practice at Berkeley Research Group. He is also a former Commissioner of the California Department of Financial Institutions. He previously served as a banking executive at Union Bank of California. Mr. Mix serves as chairman of the International Bankers Association of California.
Mr. Mix works with the firm’s domestic and foreign bank clients on corporate governance, risk management, strategic planning and financial advisory assignments. He has significant experience in strategic planning, mergers and acquisitions, enterprise risk management, regulatory compliance, and capital planning. He has also advised clients on reengineering and implementing technology to improve profitability. He also performs litigation and expert services based on his extensive expertise in financial services.
In his position as Commissioner of the California Department of Financial Institutions, he reorganized the DFI and improved the efficiency and effectiveness of the Department. Mr. Mix worked with financial institutions on more than 60 mergers and acquisitions and the formation of 50 de novo institutions. He reengineered the examination processes for banking and other licensees. He was instrumental in the development and passage of California’s identity theft law and many other laws including the interstate banking and branching law and cooperative supervisory agreements for domestic and foreign banks. Mr. Mix also spearheaded proposals designed to enhance financial institutions’ electronic banking and commerce capabilities.
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Berkeley Research Group, LLC is a leading global expert services and consulting firm that provides independent expert testimony, litigation and regulatory support, authoritative studies, strategic advice, and document and data analytics to major law firms, Fortune 500 corporations, government agencies, and regulatory bodies around the world. BRG experts and consultants combine intellectual rigor with practical, real-world experience and an in-depth understanding of industries and markets. Their expertise spans economics and finance, data analytics and statistics, and public policy in many of the major sectors of our economy including health care, finance, banking, information technology, energy, construction, and real estate. BRG is headquartered in Emeryville, CA, with 19 offices in the United States and London, UK.
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Walter J. Mix III
Berkeley Research Group, LLC
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