U.S. Leveraged Lending Guidance Under Scrutiny: GAO Concludes that Congressional Review Is Necessary
Yesterday, the U.S. Government Accountability Office (“GAO”) determined that guidance issued by the federal banking agencies in 2013 relating to leveraged lending constituted a “rule” for purposes of the Congressional Review Act of 1996. The GAO’s determination is important because it means that the guidance must be submitted to the Congress for review. It is possible the guidance could be overturned if a joint resolution of disapproval is passed by Congress.