[Federal Register Volume 77, Number 29 (Monday, February 13, 2012)]
[Proposed Rules]
[Pages 8066-8071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1666]
[[Page 8065]]
Vol. 77
Monday,
No. 29
February 13, 2012
Part XXIII
Federal Deposit Insurance Corporation
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Semiannual Regulatory Agenda
Federal Register / Vol. 77 , No. 29 / Monday, February 13, 2012 /
Unified Agenda
[[Page 8066]]
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FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Ch. III
Semiannual Agenda of Regulations
AGENCY: Federal Deposit Insurance Corporation.
ACTION: Semiannual regulatory agenda.
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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is hereby
publishing items for the fall 2011 Unified Agenda of Federal Regulatory
and Deregulatory Actions. The agenda contains information about FDIC's
current and projected rulemakings, existing regulations under review,
and completed rulemakings.
FOR FURTHER INFORMATION CONTACT: Persons identified under regulations
listed in the Agenda. Unless otherwise noted, the address for all FDIC
staff identified in the agenda is Federal Deposit Insurance
Corporation, 550 17th Street NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: Twice each year, the FDIC publishes an
agenda of regulations to inform the public of its regulatory actions
and to enhance public participation in the rulemaking process.
Publication of the agenda is in accordance with the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.). The FDIC amends its regulations
under the general rulemaking authority prescribed in section 9 of the
Federal Deposit Insurance Act (12 U.S.C. 1819) and under specific
authority granted by the Act and other statutes.
Prerule
Recordkeeping Rules for Institutions Operating under the Exceptions
or Exemptions for Banks from the Definitions of ``Broker'' or
``Dealer'' in the Securities Exchange Act of 1934 (AD80): The Office of
the Comptroller of the Currency, the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation and the
Office of Thrift Supervision are requesting comment on proposed
recordkeeping rules for banks, savings associations, federal and state-
licensed branches and agencies of foreign banks, and Edge and agreement
corporations that engage in securities-related activities under the
statutory exceptions or regulatory exemptions for ``banks'' from the
definitions of ``broker'' or ``dealer'' in section 3(a)(4)(B) or
section 3(a)(5) of the Securities Exchange Act of 1934. The proposed
rules are designed to facilitate and promote compliance with these
exceptions and exemptions.
Calculation of Maximum Obligation Limitation (AD84): This notice is
published jointly by the Federal Deposit Insurance Corporation and the
Departmental Offices of the Department of the Treasury and proposes
rules to implement applicable provisions of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (Dodd-Frank Act). In accordance with
the requirements of the Dodd-Frank Act, the proposed rules govern the
calculation of the maximum obligation limitation (MOL), as specified in
section 210(n)(6) of the Dodd-Frank Act. The MOL limits the aggregate
amount of outstanding obligations that the FDIC may issue or incur in
connection with the orderly liquidation of a covered financial company.
Prohibitions and Restrictions on Proprietary Trading and Certain
Relationships With Hedge Funds and Private Equity Funds (AD85): This
notice is published jointly by the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, the Office
of the Comptroller of the Currency, the Securities Exchange Commission,
and the Commodity Futures Trading Commission and are requesting comment
on a proposed rule that would implement section 619 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act which contains certain
prohibitions and restrictions on the ability of banking entities and
nonbank financial companies supervised by the Board to engage in
proprietary trading and have certain investments in, or relationships
with, hedge funds or private equity funds. Section 619 is commonly
referred to as the ``Volcker Rule.''
Proposed Rules
Special Reporting, Analysis and Contingent Resolution Plans at
Certain Large Insured Depository Institutions (AD59): The Federal
Deposit Insurance Corporation (FDIC) is seeking comment on a proposed
rule that would require certain identified insured depository
institutions (IDIs) that are subsidiaries of large and complex
financial parent companies to submit to the FDIC analysis, information,
and contingent resolution plans that address and demonstrate the IDI's
ability to be separated from its parent structure, and to be wound down
or resolved in an orderly fashion. The IDI's plan would include a gap
analysis that would identify impediments to the orderly stand-alone
resolution of the IDI, and identify reasonable steps that are or will
be taken to eliminate or mitigate such impediments. The contingent
resolution plan, gap analysis, and mitigation efforts are intended to
enable the FDIC to develop a reasonable strategy, plan, or options for
the orderly resolution of the institution. The proposal would apply
only to IDIs with greater than $10 billion in total assets that are
owned or controlled by parent companies with more than $100 billion in
total assets.
Alternatives to the Use of Credit Ratings in the Risk-Based Capital
Guidelines of the Federal Banking Agencies (AD62): The regulations of
the Office of the Comptroller of the Currency, Board of Governors of
the Federal Reserve System, Federal Deposit Insurance Corporation, and
Office of Thrift Supervision (collectively the Agencies) include
various references to and requirements based on the use of credit
ratings issued by nationally recognized statistical rating
organizations. Section 939A of the Dodd-Frank Wall Street Reform and
Consumer Protection Act, enacted on July 21, 2010, requires the
Agencies to review their regulations that (1) require an assessment of
the credit-worthiness of a security or money market instrument and (2)
contain references to or requirements regarding credit ratings. In
addition, the Agencies are required to remove such requirements that
refer to or rely upon credit ratings, and to substitute in their place
uniform standards of credit-worthiness.
Risk-Based Capital Guidelines: Market Risk (AD70): The Office of
the Comptroller of the Currency, Board of Governors of the Federal
Reserve System, and Federal Deposit Insurance Corporation (collectively
the Agencies) are requesting comment on a proposal to revise their
market risk capital rules to modify their scope to better capture
positions for which the market risk capital rules are appropriate;
reduce procyclicality in market risk capital requirements; enhance the
rules' sensitivity to risks that are not adequately captured under the
current regulatory measurement methodologies; and increase transparency
through enhanced disclosures. The proposal does not include the
methodologies adopted by the Basel Committee on Banking Supervision for
calculating the specific risk capital requirements for debt and
securitization positions due to their reliance on credit ratings, which
is impermissible under the Dodd-Frank Wall Street Reform and Consumer
Protection Act. The proposal, therefore, retains the current specific
risk treatment for these positions until the Agencies develop
alternatives standards of creditworthiness as required by the Act. The
proposed rules are substantively the same across the Agencies.
[[Page 8067]]
Credit Risk Retention (AD74): The Office of the Comptroller of the
Currency, Board of Governors of the Federal Reserve System, Federal
Deposit Insurance Corporation, U.S. Securities and Exchange Commission,
Federal Housing Finance Agency, and Department of Housing and Urban
Development (collectively the Agencies) are proposing rules to
implement the credit risk retention requirements of section 15G of the
Securities Exchange Act of 1934 (15 U.S.C. 78o-11), as added by section
941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Section 15G generally requires the securitizer of asset-backed
securities to retain not less than five percent of the credit risk of
the assets collateralizing the asset-backed securities. Section 15G
includes a variety of exemptions from these requirements, including an
exemption for asset-backed securities that are collateralized
exclusively by residential mortgages that qualify as ``qualified
residential mortgages,'' as such term is defined by the Agencies by
rule.
Resolution Plans and Credit Exposure Reports Required (AD77): The
Board of Governors of the Federal Reserve System (Board) and the
Federal Deposit Insurance Corporation (FDIC) request comment on this
proposed rule that implements the requirements in section 165(d) of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-
Frank Act) regarding resolution plans and credit exposure reports.
Section 165(d) requires each nonbank financial company supervised by
the Board and each bank holding company with assets of $50 billion or
more to report periodically to the Board, the FDIC, and the Financial
Stability Oversight Council (the Council) (i) the plan of such company
for rapid and orderly resolution in the event of material financial
distress or failure, and (ii) the nature and extent of credit exposures
of such company to significant bank holding companies and significant
nonbank financial companies and the nature and extent of the credit
exposures of significant bank holding companies and significant nonbank
financial companies to such company. Section 165(d)(8) of the Dodd-
Frank Act requires the Board and the FDIC to jointly issue final rules
implementing section 165(d) by not later than January 21, 2012.
Margin and Capital Requirements for Covered Swap Entities (AD79):
The Office of the Comptroller of the Currency, Board of Governors of
the Federal Reserve System, Federal Deposit Insurance Corporation, Farm
Credit Administration and Federal Housing Finance Agency (collectively,
the Agencies) are requesting comment on a proposal to establish minimum
margin and capital requirements for registered swap dealers, major swap
participants, security-based swap dealers, and major security-based
swap participants for which one of the Agencies is the prudential
regulator.
Incentive-Based Compensation Arrangements (AD86): The Office of the
Comptroller of the Currency, the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, the Office
of Thrift Supervision, the National Credit Union Administration, the
U.S. Securities Exchange Commission, and the Fair Housing Finance
Agency (collectively the Agencies) are proposing rules to implement
section 956 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act. The proposed rule would require the reporting of
incentive-based compensation arrangements by a covered financial
institution and prohibit incentive-based compensation arrangements at a
covered financial institution that provide excessive compensation or
that could expose the institution to inappropriate risks that could
lead to material financial loss.
Final Rules
Retail Foreign Exchange Transactions (AD81): The Federal Deposit
Insurance Corporation (FDIC) is adopting a final rule that imposes
requirements for foreign currency futures, options on futures, and
options that an insured depository institution supervised by the FDIC
engages in with retail customers. The final rule also imposes
requirements on other foreign currency transactions that are
functionally or economically similar, including so-called ``rolling
spot'' transactions that an individual enters into with a foreign
currency dealer, usually through the Internet or other electronic
platform, to transact in foreign currency. The regulations do not apply
to traditional foreign currency forwards, spots, or swap transactions
that an insured depository institution engages in with business
customers to hedge foreign exchange risk. The final rule applies to all
state nonmember banks and, as of July 21, 2011, also to all state
savings associations.
Transfer and Redesignation of Certain Regulations Involving State
Savings Associations Pursuant to the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010 (AD82): Consistent with the authority
provided to the Federal Deposit Insurance Corporation (FDIC) by the
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and
other statutory authorities, the FDIC is reissuing and redesigning
certain transferring Office of Thrift Supervision (OTS) regulations
currently found in title 12, chapter V of the Code of Federal
Regulations. In republishing these rules, the FDIC is making only
technical changes to existing OTS regulations (such as nomenclature or
address changes), and eliminating those OTS regulations for which other
appropriate Federal banking agencies are authorized to act. In the
future, the FDIC may take other actions related to the transferred
rules: Incorporating them into other FDIC regulations contained in
title 12, chapter III; amending them; or rescinding them, as
appropriate.
Disclosure of Information; Privacy Act Regulations; Notice and
Amendments (AD83): The Dodd-Frank Wall Street Reform and Consumer
Protection Act abolished the Office of Thrift Supervision (OTS) and
redistributed, as of July 21, 2011, the statutorily prescribed transfer
date (Transfer Date), the functions and regulations of the OTS relating
to savings and loan holding companies, Federal savings associations,
and State savings associations to the Board of Governors of the Federal
Reserve System, the Office of the Comptroller of the Currency, and the
Federal Deposit Insurance Corporation (FDIC), respectively. The FDIC
has determined that, effective on the Transfer Date, the OTS Freedom of
Information Act (FOIA) and Privacy Act (PA) regulations will not be
enforced by the FDIC and that, instead, all FOIA and PA issues will be
addressed under the FDIC's regulations involving disclosure of
information and the PA, as amended. In taking this action the FDIC's
goal is to avoid potential confusion and uncertainty that may arise
regarding information concerning State savings associations after the
Transfer Date.
Completed Actions
Guidelines for Furnishers of Information to Consumer Reporting
Agencies (AD40): The Office of the Comptroller of the Currency, the
Board of Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation, the Office of Thrift Supervision, the National
Credit Union Administration, and the Federal Trade Commission
(collectively the Agencies) requested comment to gather information
that would assist the Agencies in considering the development of a
possible proposed addition to the furnisher accuracy and integrity
guidelines which, along with
[[Page 8068]]
the accompanying regulations, implement the accuracy and integrity
provisions in section 312 of the Fair and Accurate Credit Transactions
Act of 2003 that amended section 623 of the Fair Credit Reporting Act.
This rule would also assist the Agencies in determining whether it
would be appropriate to propose an addition to one of the guidelines
that would delineate the circumstances under which a furnisher would be
expected to provide an account opening date to a consumer reporting
agency to promote the integrity of the information. In addition, the
Agencies requested comment more broadly on whether furnishers should be
expected to provide any other types of information to a consumer
reporting agency in order to promote integrity.
Defining Safe Harbor Protection for Treatment by the Federal
Deposit Insurance Corporation as Conservator or Receiver of Financial
Assets Transferred by an Insured Depository Institution (AD53): The
Federal Deposit Insurance Corporation (FDIC) is amending its regulation
codified at 12 CFR section 360.6, Defining Safe Harbor Protection for
Treatment by the Federal Deposit Insurance Corporation as Conservator
or Receiver of Financial Assets Transferred in Connection with a
Securitization or Participation. The amendment adds a new subparagraph
(b)(2) in order to continue for a limited time the safe harbor
provision of section 360.6(b) for participations or securitizations
that would be affected by recent changes to generally accepted
accounting principles. In effect, the Rule ``grandfathers'' all
participations and securitizations for which financial assets were
transferred or, for revolving securitization trusts, for which
securities were issued prior to March 31, 2010, so long as those
participations or securitizations complied with the preexisting section
360.6 under generally accepted accounting principles in effect prior to
November 15, 2009. The transitional safe harbor will apply irrespective
of whether or not the participation or securitization satisfies all of
the conditions for sale accounting treatment under generally accepted
accounting principles as effective for reporting periods after November
15, 2009.
Risk-Based Capital Standards: Advanced Capital Adequacy Framework-
Basel II; Establishment of a Risk-Based Capital Floor (AD71): The
Office of the Comptroller of the Currency, Board of Governors of the
Federal Reserve System, and the Federal Deposit Insurance Corporation
(collectively, the Agencies) propose to amend the advanced risk-based
capital adequacy standards (advanced approaches rules) to be consistent
with certain provisions of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (the Dodd-Frank Act) and amend the general
risk-based capital rules to provide limited flexibility consistent with
section 171(b) of the Dodd-Frank Act for recognizing the relative risk
of certain assets generally not held by depository institutions.
Procedures for Monitoring Bank Secrecy Act Compliance and Fair
Credit Reporting: Technical Amendments (AD76): The Federal Deposit
Insurance Corporation has adopted a final rule updating the cross-
references in its anti-money laundering program and Fair Credit
Reporting Act rules, to conform to changes in the numbering of the
Department of the Treasury's rules that implement the Bank Secrecy Act.
Interest On Deposits; Deposit Insurance Coverage (AD78): Effective
July 21, 2011, the statutory prohibition against the payment of
interest on demand deposits will be repealed pursuant to section 627 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act. In light
of this, the Federal Deposit Insurance Corporation (FDIC) proposes to
rescind part 329, the regulation that has implemented this prohibition
with respect to state-chartered nonmember (SNM) banks. Because part 329
includes a definition of ``interest'' that may assist the FDIC in
interpreting a recent statutory amendment that provides temporary,
unlimited deposit insurance coverage for noninterest-bearing
transaction accounts, the FDIC also proposes to retain and move the
definition of ``interest'' into part 330, the deposit insurance
regulations.
Certain Orderly Liquidation Authority Provisions under Title II of
the Dodd-Frank Wall Street Reform and Consumer Protection Act (AD87):
The Federal Deposit Insurance Corporation (FDIC) issued a final rule to
implement certain provisions of its authority to resolved covered
financial companies under title II of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (the Dodd-Frank Act). The Final Rule
established a more comprehensive framework for the implementation of
the FDIC's orderly liquidation authority and will provide greater
transparency to the process for the orderly liquidation of a
systemically important financial institution under the Dodd-Frank Act.
Federal Deposit Insurance Corporation.
Valerie Best,
Assistant Executive Secretary.
Federal Deposit Insurance Corporation--Proposed Rule Stage
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Regulation
Sequence No. Title Identifier No.
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572....................... 12 CFR 342 Recordkeeping 3064-AD80
Rules for Institutions
Operating Under the
Exceptions or Exemptions
for Banks From the
Definitions of ``Broker''
or ``Dealer'' in the
Securities Exchange Act
of 1934.
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Federal Deposit Insurance Corporation--Final Rule Stage
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Regulation
Sequence No. Title Identifier No.
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573....................... 12 CFR 325 Alternatives to 3064-AD62
the Use of Credit Ratings
in the Risk-Based Capital
Guidelines of the Federal
Banking Agencies.
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[[Page 8069]]
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
Proposed Rule Stage
572. Recordkeeping Rules for Institutions Operating Under the
Exceptions or Exemptions for Banks From the Definitions of ``Broker''
or ``Dealer'' in the Securities Exchange Act of 1934
Legal Authority: 12 U.S.C. 1818; 12 U.S.C. 1819 (Tenth); 12 U.S.C.
1828(t)
Abstract: The Office of the Comptroller of the Currency, the Board
of Governors of the Federal Reserve System, the Federal Deposit
Insurance corporation and the Office of Thrift Supervision are
requesting comment on proposed recordkeeping rules for banks, savings
associations, federal and state-licensed branches and agencies of
foreign banks, and Edge and agreement corporations that engage in
securities-related activities under the statutory exceptions or
regulatory exemptions for ``banks'' from the definitions of ``broker''
or ``dealer'' in section 3(a)(4)(B) or section 3(a)(5) of the
Securities Exchange Act of 1934. The proposed rules are designed to
facilitate and promote compliance with these exceptions and exemptions.
Timetable:
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Action Date FR Cite
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NPRM................................ 12/00/11
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Michael Phillips, Counsel, Legal Division, Federal
Deposit Insurance Corporation, Washington, DC 20429, Phone: 202 898-
3581.
RIN: 3064-AD80
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
Final Rule Stage
573. Alternatives to the Use of Credit Ratings in the Risk-Based
Capital Guidelines of the Federal Banking Agencies
Legal Authority: Not Yet Determined
Abstract: The regulations of the Office of the Comptroller of the
Currency, Board of Governors of the Federal Reserve System, Federal
Deposit Insurance Corporation, and Office of Thrift Supervision
(collectively the Agencies) include various references to and
requirements based on the use of credit ratings issued by nationally
recognized statistical rating organizations. Section 939A of the Dodd-
Frank Wall Street Reform and Consumer Protection Act, enacted on July
21, 2010, requires the Agencies to review their regulations that (1)
require an assessment of the credit-worthiness of a security or money
market instrument and (2) contain references to or requirements
regarding credit ratings. In addition, the Agencies are required to
remove such requirements that refer to or rely upon credit ratings, and
to substitute in their place uniform standards of credit-worthiness.
Timetable:
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Action Date FR Cite
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ANPRM............................... 08/25/10 75 FR 52283
ANPRM Comment Period End............ 10/25/10 .......................
Final Rule.......................... 12/00/11
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Bobby R. Bean, Chief, Policy Section, Federal
Deposit Insurance Corporation, Washington, DC 20429, Phone: 202 898-
3575.
Mark Handzlik, Senior Attorney, Federal Deposit Insurance
Corporation, Washington, DC 20429, Phone: 202 898-3900.
Michael Phillips, Counsel, Legal Division, Federal Deposit
Insurance Corporation, Washington, DC 20429, Phone: 202 898-3581.
RIN: 3064-AD62
[FR Doc. 2012-1666 Filed 2-10-12; 8:45 am]
BILLING CODE 6714-01-P