By Heath Tarbert and Dimia Fogam
The Board of Governors of the Federal Reserve System (FRB), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) (collectively, the Agencies) issued guidance to clarify the effective date of Section 716 of Dodd-Frank, commonly referred to as the Push-Out Rule. The Agencies stated that Section 716 will become effective on July 16, 2013.
Section 716 prohibits federal assistance, including access to the Federal Reserve discount window and FDIC deposit insurance, to any swaps entity with respect to any swap, security-based swap, or other activity of the swaps entity. The term “swap entity” refers to any swap dealer, security-based swap dealer, major swap participant, or major security-based swap participant that is registered under the Commodity Exchange Act or Securities Exchange Act of 1934. However, the rule allows certain entities to remain eligible for [click to continue…]
By Heath Tarbert and Dimia Fogam
The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB), and the Federal Deposit Insurance Corporation (FDIC) (collectively, the Agencies) released for public comment their proposed joint guidance on leveraged lending activities.
The proposed guidance is a revision to the interagency leveraged finance guidance issued in 2001 and would apply to all OCC-, FRB- and FDIC-supervised financial institutions that are substantively engaged in leveraged lending activities—such as those common to the private equity and hedge fund lending market.
Given the immense growth in the volume of leveraged credit as well as the increased participation of non-regulated investors over the last decade, the Agencies have expressed concerns that [click to continue…]
By Heath P. Tarbert and Dimia Fogam
Two federal banking regulators set a new deadline of April 30, 2012 for the comment period for their proposed rules to implement the annual stress test requirements in Section 165 of the Dodd-Frank Act.
Previously, on January 24, 2012, the Office of the Comptroller of the Currency (“OCC”) proposed a rule to implement section 165(i)(2) that would require any national bank or federal thrift with total consolidated assets exceeding $10 billion (“Covered Institutions”) to conduct an annual stress test. A week prior, the Federal Deposit Insurance Corporation (“FDIC”) released its own proposed stress testing rule for FDIC-insured state nonmember banks and thrifts with total consolidated assets of more than $10 billion dollars (“Covered Banks”). The OCC and FDIC proposed rules are “consistent and comparable” as required by Section 165(i)(2), and each direct Covered Institutions and Covered Banks respectively to assess the potential impact of economic conditions on their capital—taking into account their current condition along with corresponding risks, exposures, strategies, and activities. Every year, after being provided with at least three scenarios (including “baseline,” “adverse,” and “severely adverse”) at some point in the Autumn, Covered Institutions and Covered Banks will have until January 5 of the subsequent year to [click to continue…]
in Commodity Futures Trading Commission, Comptroller of the Currency, Federal Deposit Insurance Corporation, Federal Reserve Board, Financial Stability Oversight Council, Office of Financial Research, Recent Posts, Recent Posts, Securities and Exchange Commission, U.S. Treasury Department, Uncategorized
by Michael Lyle, Heath Tarbert, and Sunny Thompson
On July 21, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank” or “the Act”), which was passed in direct response to the global financial crisis. Just one year later, that Act – representing the most comprehensive package of reforms since the Great Depression – has already begun altering the regulatory landscape for banks, investment funds, securities firms, and publicly listed companies outside the financial sector. But the most significant changes are yet to come. [click to continue…]
By: Derrick D. Cephas and Alex Radetsky
Title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) mandates the wind-down of the Office of Thrift Supervision (“OTS”), the issuer of charters for federal savings associations (commonly called “thrifts”) and the primary regulator of federal and state thrifts and savings and loan holding companies, and the distribution of its authority to the other U.S. banking regulators. Title III provides the Office of the Comptroller of the Currency (“OCC”) with regulatory authority over federally chartered savings associations and the Federal Deposit Insurance Corporation (“FDIC”) with regulatory authority over State-Chartered savings associations. All functions, powers, authorities, rights and duties of the OTS with respect to federal and state chartered savings associations will be transferred to the OCC and FDIC, respectively, as part of the transfer process established by the Dodd-Frank Act. In connection with this effort, on July 6, 2011, the OCC and the FDIC issued a joint notice (the “Joint Notice”) listing out those regulations previously promulgated by the OTS which shall survive under the authority of the OCC and FDIC, respectively. [click to continue…]
