The Board of Governors of the Federal Reserve System ("FRB") published FAQs regarding the competitive review process for bank acquisitions, mergers and other transactions. The FAQs, which were developed jointly with the Department of Justice ("DOJ"), provide answers to questions often raised by banking organizations that are considering filing applications, and also explain changes to the application process mandated by the Dodd-Frank Act. Additionally, the FAQs cover factors considered by the FRB and DOJ in conducting competitive analyses for bank applications. See: FAQs on Competitive Review

The SEC announced an enforcement action against current and former brokerage subsidiaries of E*TRADE Financial Corporation for failing in their "gatekeeper roles" and improperly engaging in unregistered sales of microcap stocks on behalf customers. According to the Order, E*TRADE Securities and E*TRADE Capital Markets sold billions of penny stock shares for customers during a four-year period, notwithstanding red flags that the offerings were being conducted without an applicable exemption from the registration provisions of the federal securities laws. In addition to the enforcement action

The FINRA-proposed rule change to extend the Tier Size Pilot pursuant to FINRA Rule 6433 ("Minimum Quotation Size Requirements for OTC Equity Securities") was published in the Federal Register. The rule change will extend the Tier Size Pilot to February 13, 2015 rather than November 14, 2014. Although the rule change is effective immediately, comments may be submitted until October 30, 2014. S ee: 79 FR 61120. Related news: FINRA Proposed Rule Change to Extend Tier Size Pilot of FINRA Rule 6433 (November 6, 2013).

FINRA issued a regulatory notice regarding confidentiality provisions in settlement agreements and the arbitration discovery process. The regulatory notice reminds firms that it is a violation of FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade") to add to settlement agreements or any other documents any confidentiality provisions, including confidentiality stipulations made during a FINRA arbitration proceeding, that prohibit or restrict a customer or any other person from communicating with the SEC, FINRA, or any federal or state regulatory authority regarding a

House Financial Services Subcommittee on Oversight and Investigations Chairman Patrick McHenry (R-NC) and Subcommittee on Capital Markets and Government Sponsored Enterprises Chairman Scott Garrett (R-NJ) submitted a letter to Board of Governors of the Federal Reserve System ("FRB") Chair Janet Yellen, urging the FRB to discontinue its temporary overnight reverse repurchase facility ("RRP") by the end of the year. According to Chairman Garrett and Chairman McHenry (collectively, "Chairmen"), there is concern that the use of the RRP could have a "significant negative impact on the U.S. economy