December 18th, 2018

2019 Business and Banking Outlook

Our Business Services Group is keeping an eye on three areas of law that will impact our business and banking clients in 2019.

Issues related to cybersecurity, data privacy, data protection, data breaches are expected to be one of the biggest issues facing our business clients in 2019.  The European Union’s General Data Protection Regulation (GDPR), which went into effect on May 25th of 2018 is impacting businesses worldwide, even though the GDPR only applies to companies doing business with residents of European Union countries.  It is expected that the enactment of the GDPR, along with public concern over big data security breaches such as the one recently revealed  by  the Marriott Hotel chain,  may result in stricter data regulations in the US including more stringent compliance and notification obligations for businesses.   We will be monitoring this very closely, and provide you with updates throughout  the year.

As our bank clients  are aware, LIBOR (London Interbank Offered Rate) which has been used as a benchmark rate since 1986 is being phased out by the end of 2021 and transitioned to the Secured Overnight Financing Rate (SOFR), the alternative reference rate recently developed by the Alternative Reference Rates Committee (ARRC).  This will require loan documents referencing  LIBOR to reference  SOFR or some other benchmark rate to be effective as of a date certain or when LIBOR rates are no longer available.

We are also watching how the  Economic Growth, Regulatory Relief and Consumer Protection Act, which was passed into law in May of 2018 with a variety of effective dates and various provisions,  among them easing Dodd-Frank regulations and relieving smaller banks from the Volcker Rule, will impact both our business and banking clients.


Attorney Tom Reilly serves as Chair of Gross McGinley’s Business Services Group, providing legal counsel to regionally and nationally-held business and banking clients. He regularly provides guidance on commercial and banking law matters including financing, lending, and mergers and acquisitions.

The content found in this resource is for informational reference use only and is not considered legal advice. Laws at all levels of government change frequently and the information found here may be or become outdated. It is recommended to consult your attorney for the most up-to-date information regarding current laws and legal matters.