FRB Releases Draft "Basel II" Notice of Proposed Rulemaking

Developments of Note

1. Federal Court of Appeals Vacates SEC Mutual Fund Governance Rules but Stays Mandate for 90 Days to Enable SEC to Reopen Comment Period

2. FRB Releases Draft "Basel II" Notice of Proposed Rulemaking

The Federal Court of Appeals for the D.C. Circuit (the "Court") ruled on the appeal of the U.S. Chamber of Commerce (the "Chamber") challenging the SEC’s new fund governance rules generally requiring an independent chairman of the board and a board consisting of no less than 75% independent directors (the "Rules"). The Rules had an original effective date of January 15, 2006, but had been stayed by the Court on August 10, 2005. The Court vacated the Rules, but stayed the mandate for 90 days to give the SEC additional time to reopen the comment period. (See August 3, 2004 Alert for a discussion