Alex Megaris was featured in a Q&A article discussing the financial regulatory landscape in the November 14, 2017 issue of the New York Law Journal. Here is an excerpt.
Q: How has the financial regulatory landscape changed since the Great Recession?
Megaris: After the Great Recession, regulations over financial institutions really ramped up; the Dodd-Frank Wall Street Reform and Consumer Protection Act and a brand new federal agency [the Consumer Financial Protection Bureau]. It’s pretty rare to see a completely new agency that was created with broad regulatory and enforcement power under one roof with the authorities built into the statute, which really became the driver of regulation and reshaping the landscape for the country. States were playing catch up, following the CFPB’s coattails. The CFPB also lets the states’ attorneys general [have] the authority to enforce. Didn’t necessarily give them the resources, but it gave them the authority.
Q: How have those changes affected the way banks and other financial institutions operate?
Megaris: It had a very big impact on banks, and later nonbanks. The earliest cases were against banks. But banks have been used to regulation. It was the nonbanks [including lending and depositing services] such who didn’t have supervision on the federal level, and these new regulations caught nonbanks off guard. They’ve really had to step their game up in the last four years and build a strong, independent compliance program.