This updates our March 24, 2011 blog post.

Yesterday, New York Governor Andrew Cuomo, State Assembly Speaker Sheldon Silver and State Senate Majority Leader Dean Skelos announced an agreement with respect to the 2011-2012 budget (the “Budget”), including, among other things, an agreement to adopt a bill (the “Bill”) merging the State’s Insurance and Banking Departments into a single agency. The final version of the Bill has not yet been published. However, it will likely contain the revisions noted in our March 1 Client Alert, as well as further changes based on certain industry concerns. It is known that the final version of the Bill will change the name of the new agency from the Department of Financial Regulation to the Department of Financial Services, and that the Consumer Protection Board will no longer be merged into the new agency as originally contemplated.

The Bill is subject to vote in the State Assembly and Senate.

Click here for a copy of the press release announcing the agreement.