FDIC

News and Notes – Fintech

CFTC, FDIC, GFIN, OCC, sec

The Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and the Securities and Exchange Commission (SEC) announced joining the Global…

US FDIC and Comptroller of the Currency approve Volcker Rule reforms

August 22, 2019

FDIC, OCC, Volcker Rule

The final rule will: Tailor the rule’s compliance requirements based on the size of a firm’s trading assets and liabilities, with the most stringent requirements applied to banking entities with…

US regulators simplify capital rules for smaller banks and exempt community banks from the Volcker Rule

July 9, 2019

capital rules, FDIC, Federal Reserve

The federal bank regulatory agencies today issued a final rule that reduces regulatory burden by simplifying several requirements in the agencies’ regulatory capital rules. The simplifications in the final rule…

ABA: FDIC Approves Proposal to Exclude Central Bank Deposits from SLR

March 31, 2019

ABA, FDIC, Leverage Ratio, SLR

March 29, 2019 The FDIC today approved a joint agency proposal to exclude central bank deposits from the denominator of the supplementary leverage ratio for banking organizations predominantly engaged in custody banking…

US regulators issue statement on the Economic Growth, Regulatory Relief, and Consumer Protection Act

July 6, 2018

Alex Tonhazy

EGRRCPA, FDIC, OCC

On May 24, 2018, the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) amended provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) as well…

Hoenig to step down as FDIC’s vice chair

April 27, 2018

FDIC, Hoenig

Thomas Hoenig announced that he is stepping down as the vice chair and a member of the Board of Directors of the Federal Deposit Insurance Corporation (FDIC) on April 30,…

Fed and agencies want further CECL changes to account for existing US rules

April 17, 2018

CECL, FDIC, Federal Reserve, OCC

The federal banking agencies (Federal Reserve, FDIC, OCC) proposed a revision to their regulatory capital rules to address and provide an option to phase in the regulatory capital effects of…

Fed, OCC among agencies seeking comment on swap margin rule amendments

February 6, 2018

FDIC, Federal Reserve Board of Governors, Office of the Comptroller of the Currency, swap margin rule

Five federal agencies propose to amend swap margin requirements to conform with recent rule changes that impose new restrictions on certain qualified financial contracts (QFCs) of systemically important banking organizations.…

FDIC issues guidance on shift to T+2

July 31, 2017

FDIC, settlement, T+2

The FDIC issued a guidance document for businesses ahead of the change of regular settlement cycle from T+3 to T+2 for many US securities including equities, corporate bonds, unit investment trusts—and financial…

Fed and FDIC approve resolution plans of BofA, BNYM, JPMC, and State Street; Wells Fargo not approved

December 13, 2016

FDIC, Federal Reserve, resolution plans

Agencies Announce Determinations on October Resolution Plan Submissions of Five Systemically Important Domestic Banking Institutions The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board on Tuesday announced that…

FDIC's Hoenig says keep tough bank capital measures in place, don't backtrack

November 10, 2016

Basel III, FDIC, Hoenig

“Strengthening Global Capital: An Opportunity Not To Be Lost” – Remarks by FDIC Vice Chairman Thomas M. Hoenig to the 22nd Annual Risk USA Conference, New York, NY Momentum is…

US regulators propose NSFR rules

April 27, 2016

FDIC, Federal Reserve, NSFR, OCC, US regulators

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) are inviting comment on…

US agencies reject seven banks on living wills – what actually happened with BNYM and State Street? (Premium)

April 19, 2016

Dodd-Frank, Regulatory, Systemic Risk, US

BNY Mellon, Dodd-Frank, FDIC, Federal Reserve, Living Wills, State Street, topstory

The Federal Reserve and FDIC announced last week that they had rejected the living wills of seven major US banks (five of them were rejected by both regulators and two…

US Agencies Announce Determinations and Provide Feedback on Resolution Plans of Eight Systemically Important, Domestic Banking Institutions

April 14, 2016

FDIC, Federal Reserve, Living Wills

The Federal Deposit Insurance Corporation and the Federal Reserve Board on Wednesday jointly announced determinations and provided firm-specific feedback on the 2015 resolution plans of eight systemically important, domestic banking…

Extending the 48 hour collateral liquidation stay to financing trades: cash lenders won’t be happy

November 12, 2015

Collateral Management, Credit Exposure, Liquidity Management, Money Market Funds, Repo, Risk Management

collateral liquidation, FDIC, FSB, OLA, safe harbor, topstory

ICMA, FSB, ISDA and Bloomberg are talking about the extension of the 48 hour rule in derivatives – where if a counterparty goes bust, liquidating the collateral is subject to…

US Agencies provide feedback to nonbank firms on resolution plans

July 30, 2015

FDIC, Federal Reserve, non-bank

The Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) on Tuesday provided feedback to three nonbank financial companies regarding their initial resolution plans and guidance to the firms…

The FDIC rejects living wills from the U.S. units of BNP, HSBC and RBS. The Fed was not very happy either.

March 24, 2015

Dodd-Frank, Liquidity Management, Regulatory, Risk Management

FDIC, Federal Reserve, Living Wills, topstory

The FDIC turned back the living wills for three foreign banks: HSBC, RBS, and BNP, saying they found the plans “not credible”. Had the Fed also made a similar finding,…

Will automatic stays on securities financing trade defaults really help? We doubt it.

March 12, 2015

Collateral Management, Derivatives, Dodd-Frank, Regulatory, Repo, Risk Management, Securities Lending, Systemic Risk

FDIC, OLA, too big to fail, topstory

Automatic stays in the case of a default sends shivers down the spine of securities financing traders. If the non-defaulting party can’t liquidate immediately, it calls into question how much…

FDIC Issues Guidance for the Resolution Plans of Large Banks

December 18, 2014

The Federal Deposit Insurance Corporation (FDIC) issued guidance for resolution plans that insured depository institutions with assets greater than $50 billion must submit periodically to the FDIC. These plans are…

US regulators approve final risk retention rule for securitized products

October 23, 2014

Six federal agencies approved a final rule requiring sponsors of securitization transactions to retain risk in those transactions. The final rule implements the risk retention requirements in the Dodd-Frank Wall…

US regulators seek comment on swap margin requirements

September 3, 2014

Five federal agencies are seeking comment on a proposed rule to establish margin requirements for swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants as required…

US regulators finalize LCR and Supplementary Leverage Ratio

September 3, 2014

Full text of the press releases can be found here: http://www.federalreserve.gov/newsevents/press/bcreg/20140903a.htm and here: http://www.federalreserve.gov/newsevents/press/bcreg/20140903b.htm

The next proposed US rules: adjusting the denominator of the Leverage Ratio (Finadium subscribers only)

April 15, 2014

Federal Reserve, Regulatory, Repo, Securities Lending

FDIC, Federal Reserve, Leverage Ratio, NPR, OCC, Supplementary Leverage Ratio

The battle over the US Supplementary Leverage Ratio is over; the final rule has passed. The next Notice of Proposed Rulemaking (NPR) from US regulators focuses on the total leverage…

US Adopts Enhanced Supplementary Leverage Ratio Final Rule and Issue Supplementary Leverage Ratio Notice of Proposed Rulemaking

April 8, 2014

FDIC, Federal Reserve, Office of the Comptroller of the Currency

The Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) on Tuesday adopted a final rule to strengthen the leverage…

Soberlook post on capital ratios and repo: do they get all of it right?

August 7, 2013

Basel III, Regulatory, Repo

FDIC, G-SIB, SIFI, soberlook, Tier 1 capital

A post at www.soberlook.com caught our eye. They look at the impact of SIFI 5% minimum capital ratios on repo. They make some good points but there are some problems…

US proposes 5% leverage ratio for large banks

July 10, 2013

The Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) on Tuesday proposed a rule to strengthen the leverage ratio…

Will Tier 1 capital still be used in five years? Another call for the leverage ratio.

April 15, 2013

Basel III, Regulatory

Bank of England, Basel III, FDIC, Haldane, Hoenig, Leverage Ratio, Tier 1 capital

We’ve noted on these pages the many calls to reduce the complexity of Basel III. By “reduce complexity” we really mean “get rid of.” Andrew Haldane of the Bank of…

What the end of the FDIC’s TAG program means for securities finance

December 17, 2012

Cash management, Dodd-Frank, Liquidity Management, Money Market Funds, Regulatory

cash management, FDIC, IOER, TAG

The US Senate last Thursday rejected a possible two year extension of the Transaction Account Guarantee (TAG) program, which both provided insurance to $1.6 trillion in cash holdings (16% of…

News roundup: orderly liquidations, the future of financial regulation, Euribor's troubles

December 13, 2012

Bank of England, Dodd-Frank, Europe, Regulatory, Short Term Interest Rate Benchmarks, Systemic Risk

Bank of England, Citi, DekaBank, Emerging Markets, EURIBOR, FDIC, IOSCO, orderly liquidations, Regulation

A lot has been happening in the securities finance and collateral worlds over the last week, including new reports on orderly liquidations and an interesting speech from the head of…

US government agencies officially delay new capital rules

November 9, 2012

Basel III, Regulatory

Basel III, FDIC, Federal Reserve, OCC

The US Federal Reserve, FDIC and Office of the Comptroller of the Currency officially delayed today the introduction of Basel III capital rules, following a very substantial outcry from the…

The FDIC’s Transaction Account Guarantee (TAG) is scheduled to expire at the end of the year. Where will the money go?

October 3, 2012

Liquidity Management, Money Market Funds, Repo

FDIC, Federal Reserve, Finadium, Lehman, Repo, TAG, Transactional Account Guarantee