[Federal Register Volume 75, Number 243 (Monday, December 20, 2010)]
[Proposed Rules]
[Pages 79921-79923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30465]


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Part XX





Federal Deposit Insurance Corporation





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###Semiannual Regulatory Agenda###

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FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)






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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Ch. III


Fall 2010 Unified Agenda

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 2010 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.

    Risk-Based Capital Standards: Market Risk: The OCC, Board and 
the FDIC proposed revisions to the market risk capital rule to 
enhance its risk sensitivity and introduce requirements for public 
disclosure of certain qualitative and quantitative information 
about the market risk of a bank or bank holding company. The Office 
of Thrift Supervision (OTS) currently does not apply a market risk 
capital rule to savings associations and is proposing in this 
notice a market risk capital rule for savings associations. The 
proposed rules for each agency are substantively identical.

    Deposit Insurance Regulations; Revocable Trust Accounts: The 
FDIC adopted this rule to simplify and modernize its deposit 
insurance rules for revocable trust accounts. The FDIC's main goal 
in implementing these revisions is to make the rules easier to 
understand and apply, without decreasing coverage currently 
available for revocable trust account owners. The FDIC believes 
that the rule will result in faster deposit insurance 
determinations after depository institution closings and will help 
improve public confidence in the banking system. The rule 
eliminates the concept of qualifying beneficiaries. Also, for 
account owners with revocable trust accounts totaling no more than 
$500,000, coverage will be determined without regard to the 
beneficial interest of each beneficiary in the trust.

    Under the new rule, a trust account owner with up to five 
different beneficiaries named in all his or her revocable trust 
accounts at one FDIC-insured institution will be insured up to 
$100,000 per beneficiary. Revocable trust account owners with more 
than $500,000 and more than five different beneficiaries named in 
the trust(s) will be insured for the greater of either: $500,000 or 
the aggregate amount of all the beneficiaries' interests in the 
trust(s), limited to $100,000 per beneficiary.

    Guidelines for Furnishers of Information to Consumer Reporting 
Agencies: The OCC, Board, FDIC, OTS, NCUA, and FTC (collectively, 
the Agencies) request 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 the accompanying regulations, 
implement the accuracy and integrity provisions in section 312 of 
the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) 
that amended section 623 of the Fair Credit Reporting Act (FCRA). 
This advance notice of proposed rulemaking (ANPRM) seeks to obtain 
information that would 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 request 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.

    Community Reinvestment Act Regulations: The OCC, the Board, the 
FDIC, and the OTS (collectively, the Agencies) issued this notice 
of proposed rulemaking that would revise our rules implementing the 
Community Reinvestment Act (CRA). The proposed rule would 
incorporate into our rules recently adopted statutory language that 
requires the Agencies, when assessing an institution's record of 
meeting community credit needs, to consider, as a factor, low-cost 
education loans provided by the financial institution to low-income 
borrowers. The proposal also would incorporate into our rules 
statutory language that allows the Agencies, when assessing an 
institution's record, to consider as a factor capital investment, 
loan participation, and other ventures undertaken by non minority-
owned and nonwomen-owned financial institutions in cooperation with 
minority- and women-owned financial institutions and low-income 
credit unions.

    Defining Safe Harbor Protection for Treatment by the FDIC as 
Conservator or Receiver of Financial Assets Transferred by an 
Insured Depository Institution: 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

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effective for reporting periods after November 15, 2009.

    Incorporating Executive Compensation Criteria Into the Risk 
Assessment System: The FDIC is seeking comment on ways that the 
FDIC's risk-based deposit insurance assessment system (risk-based 
assessment system) could be changed to account for the risks posed 
by certain employee compensation programs. Section 7 of the Federal 
Deposit Insurance Act (FDI Act, 12 U.S.C. 1817) sets forth the 
risk-based assessment authorities underlying the FDIC's deposit 
insurance system, and the parameters of the FDIC's rules are set 
forth at 12 CFR part 327.

    Assessments: The FDIC proposes to amend 12 CFR part 327 to 
revise the assessment system applicable to large institutions to 
better differentiate institutions by taking a more forward-looking 
view of risk; to better take into account the losses that the FDIC 
will incur if an institution fails; to revise the initial base 
assessment rates for all insured depository institutions; and to 
make technical and other changes to the rules governing the risk-
based assessment system.

    Special Reporting, Analysis and Contingent Resolution Plans at 
Certain Large Insured Depository Institutions: The 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 IDl'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 
IDls 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: The Dodd-Frank 
Wall Street Reform and Consumer Protection Act (the Act), enacted 
on July 21, 2010, requires Federal 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. The Advanced Notice of Proposed 
Rulemaking seeks comment on alternative standards of credit-
worthiness that may be used for risk-based capital requirements.

    Federal Deposit Insurance Corporation.

 Valerie J. Best,

Assistant Executive Secretary.

                            Federal Deposit Insurance Corporation--Long-Term Actions
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                                                                                                     Regulation
 Sequence                                           Title                                            Identifier
  Number                                                                                               Number
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603         12 CFR 325 Alternatives to the Use of Credit Ratings in the Risk-Based Capital            3064-AD62
            Guidelines of the Federal Banking Agencies............................................
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Federal Deposit Insurance Corporation (FDIC)          Long-Term Actions






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<###DOC>

603.  ALTERNATIVES TO THE USE OF CREDIT RATINGS IN THE 
RISK-BASED CAPITAL GUIDELINES OF THE FEDERAL BANKING AGENCIES

Legal Authority: Dodd-Frank Wall Street Reform and Consumer Protection 
Act

Abstract: The Dodd-Frank Wall Street Reform and Consumer Protection Act 
(the Act), enacted on July 21, 2010, requires Federal 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. The ANPRM seeks comment on alternative 
standards of credit-worthiness that may be used for risk-based capital 
requirements.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

ANPRM                           08/25/10                    75 FR 52283
ANPRM Comment Period End        10/25/10


Next Action Undetermined

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-AD62
[FR Doc. 2010-30465 Filed 12-17-10; 8:45 am]
BILLING CODE 6705-01-S