Enforcement of a relatively new rule of the Financial Industry Regulatory Authority (FINRA) has resulted in significant fees in 2011 for small issuers with securities traded over-the-counter (OTC), such as some community banks.
After Call Reports are filed and earnings are released in January, the attention of boards and management at many publicly-held community banks and bank holding companies turns to preparation of 10-K filings and Annual Reports to shareholders, with Proxy Statements next on the horizon.
Many community banks under pressure to raise capital are considering selling new shares of stock to investors; however, doing so may cause some banks to be required to register under Section 12(g) of the Securities Exchange Act of 1934.
Yesterday, the Congressional Oversight Panel (COP) released its February oversight report, "Commercial Real Estate Losses and the Risks to Financial Stability."
As noted in several recent press reports, the Federal Reserve Board is exploring a relaxation of current requirements imposed by the Board upon private equity and other funds investing in commercial banks or bank holding companies.