Key takeaways

• On October 19, 2017, the U.S. Government Accountability Office (the “GAO”) determined that the March 2013 Interagency Guidance on Leveraged Lending issued by the federal banking agencies is a “rule” subject to the procedural requirements of the Congressional Review Act, which requires such a rule to be submitted to Congress for review and, potentially, disapproval, before it can take effect.
• The legal and practical impact of the GAO determination is not yet clear, but the focus on the future of the leveraged lending guidance will continue.
• Further, because the agencies frequently issue various forms of supervisory guidance, often without notice and comment, the GAO’s determination, if read and applied broadly, could raise important policy questions about such Agency pronouncements.