[Federal Register Volume 76, Number 130 (Thursday, July 7, 2011)]
[Proposed Rules]
[Pages 40196-40199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-15502]





[[Page 40195]]



Vol. 76



Thursday,



No. 130



July 7, 2011



Part XX











Federal Deposit Insurance Corporation











-----------------------------------------------------------------------











Semiannual Regulatory Agenda



  Federal Register / Vol. 76 , No. 130 / Thursday, July 7, 2011 / 

Unified Agenda  



[[Page 40196]]





-----------------------------------------------------------------------



FEDERAL DEPOSIT INSURANCE CORPORATION



12 CFR Ch. III




Semiannual Agenda of Regulations



AGENCY: Federal Deposit Insurance Corporation.



ACTION: Semiannual regulatory agenda.



-----------------------------------------------------------------------



SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is hereby 

publishing items for the spring 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.



Proposed Rules



Credit Risk Retention (AD74)



    The Federal Banking Agencies are requesting comment on a proposed 

rule to implement the requirements of section 941(b) of the Dodd-Frank 

Wall Street Reform and Consumer Protection Act (the Act, or Dodd-Frank 

Act), which is codified as new section 15G of the Securities Exchange 

Act of 1934 (the Exchange Act). Section 15G of the Exchange Act, as 

added by section 941(b) of the Dodd-Frank Act, generally requires the 

Board, the FDIC, the OCC (collectively, referred to as the ``Federal 

Banking Agencies''), the Commission, and, in the case of the 

securitization of any ``residential mortgage asset,'' together with HUD 

and FHFA, to jointly prescribe regulations, that (i) require a 

securitizer to retain not less than five percent of the credit risk of 

any asset that the securitizer, through the issuance of an asset-backed 

security (ABS), transfers, sells, or conveys to a third party, and (ii) 

prohibit a securitizer from directly or indirectly hedging or otherwise 

transferring the credit risk that the securitizer is required to retain 

under section 15G and the Agencies' implementing rules.



Guidelines for Furnishers of Information to Consumer Reporting Agencies 

(AD40)



    The OCC, Board, FDIC, OTS, NCUA, and FTC (collectively referred to 

as the ``Agencies'') request comment to gather information that would 

assist in 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.



Defining Safe Harbor Protection for Treatment by the FDIC as 

Conservator or Receiver of Financial Assets Transferred by an Insured 

Depository Institution (AD53)



    The Federal Deposit Insurance Corporation (FDIC) proposes to adopt 

amendments to the rules regarding the treatment by the FDIC, as 

receiver or conservator of an insured depository institution, of 

financial assets transferred by the institution in connection with a 

securitization or a participation after September 30, 2010. The 

proposed rule would continue the safe harbor for transferred financial 

assets in connection with securitizations in which the financial assets 

were transferred under the existing regulations. The proposed rule 

would clarify the conditions for a safe harbor for securitizations or 

participations issued after September 30, 2010. The proposed rule also 

sets forth safe harbor protections for securitizations that do not 

comply with the new accounting standards for off balance sheet 

treatment by providing for expedited access to the financial assets 

that are securitized if they meet the conditions defined in the 

proposed rule. The conditions contained in the proposed rule would 

serve to protect the Deposit Insurance Fund (DIF) and the FDIC's 

interests as deposit insurer and receiver by aligning the conditions 

for the safe harbor with better and more sustainable securitization 

practices by insured depository institutions (IDIs).



Incorporating Executive Compensation Criteria Into the Risk Assessment 

System (AD56)



    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. section 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.



Special Reporting, Analysis and Contingent Resolution Plans at Certain 

Large Insured Depository Institutions (AD59)



    This proposed rule 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.



Alternative to the Use of Credit Ratings in the Risk-Based Capital 

Guidelines of the Federal Banking Agencies (AD62)



    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 

creditworthiness of a security or money market instrument, and (2) 

contain references to or requirements regarding credit ratings. In 

addition, the Agencies are required to



[[Page 40197]]



remove such requirements that refer to or rely upon credit ratings, and 

to substitute in their place uniform standards of creditworthiness. 

This proposed rule describes the areas in the agencies' risk-based 

capital standards and Basel changes that could affect those standards 

that make reference to credit ratings.



Risk-Based Capital Guidelines Market Risk (AD70)



    The Comptroller of the Currency (OCC), Board of Governors of the 

Federal Reserve System (Board), and Federal Deposit Insurance 

Corporation (FDIC) are proposing 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 proposed rule 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 proposed rule retains the current specific risk 

treatment for these positions until the Agencies develop alternative 

standards of creditworthiness as required by the Act.



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 (OCC), Board of 

Governors of the Federal Reserve System (Board), and Federal Deposit 

Insurance Corporation (FDIC) (collectively, the agencies) are proposing 

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 Act) and 

amend the general risk-based capital rules to provide limited 

flexibility consistent with Section 171(b) of the Act for recognizing 

the relative risk of certain assets generally not held by depository 

institutions.



Final Rules



Assessments, Assessment Base and Rates (AD66)



    The FDIC amended 12 CFR part 327 to: (1) Implement revisions to the 

Federal Deposit Insurance Act made by the Dodd-Frank Wall Street Reform 

and Consumer Protection Act regarding the definition of an 

institution's deposit insurance assessment base; (2) alter the 

unsecured debt adjustment in light of the changes to the assessment 

base; (3) add an adjustment for long-term debt held by an insured 

depository institution where the debt is issued by another insured 

depository institution; (4) eliminate the secured liability adjustment; 

(5) change the brokered deposit adjustment to conform to the change in 

the assessment base and change the way the adjustment will apply to 

large institutions; and (6) revise deposit insurance assessment rate 

schedules, including base assessment rates, in light of the changes to 

the assessment base. Except as provided, the proposed rate schedule and 

other revisions to the assessment rules would take effect for the 

quarter beginning April 1, 2011, and would be reflected in the June 30, 

2011, fund balance and the invoices for assessments due September 30, 

2011.



Completed Action



Deposit Insurance Regulations (AD33)



    The FDIC adopted this final 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 rules, 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.



Community Reinvestment Act Regulations (AD45)



    The Office of the Comptroller of the Currency (OCC), Board of 

Governors of the Federal Reserve System (Board), the Federal Deposit 

Insurance Corporation (FDIC) and the Office of Thrift Supervision (OTS) 

(collectively, the Agencies) issued this final rule that would revise 

the rules implementing the Community Reinvestment Act (CRA). The rule 

would incorporate 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 rule 

also would incorporate 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 

nonminority-owned and nonwomen-owned financial institutions in 

cooperation with minority- and women-owned financial institutions and 

low-income credit unions.



Securities of Nonmember Insured Banks (AD64)



    The FDIC is revising its securities disclosure regulations 

applicable to state nonmember banks with securities required to be 

registered under section 12 of the Securities Exchange Act of 1934 

(Exchange Act). The final rule incorporates through cross reference 

changes in regulations adopted by the Securities and Exchange 

Commission (SEC) into the provisions of the FDIC's securities 

regulations. Incorporation by reference will assure that the FDIC's 

regulations remain substantially similar to the SEC's regulations, as 

required by law. The final rule provides general references to SEC 

regulations by title and part of the Code of Federal Regulations (CFR), 

rather than by specific references to sections and subparts of the CFR 

as are currently provided in part 335. This revision reflects changes 

to SEC regulations with respect to small business issuers and will 

provide general guidance to FDIC filers regarding the electronic filing 

of certain documents. The amendments to part 335 references to SEC 

regulations will greatly reduce the need for future revisions of part 

335, and the FDIC's regulations will be consistent with the SEC 

regulations through the cross reference stated in 12 CFR 335.101.



[[Page 40198]]



Deposit Insurance Regulations; Unlimited Coverage for Noninterest-

bearing Transaction Accounts (AD65)



    The FDIC is adopting a final rule amending its deposit insurance 

regulations to implement section 343 of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act (Dodd-Frank Act), providing for 

unlimited deposit insurance for ``noninterest-bearing transaction 

accounts'' for two years starting December 31, 2010.



Community Reinvestment Act Regulations (AD68)



    The Office of the Comptroller of the Currency (OCC), Board of 

Governors of the Federal Reserve System (Board), the Federal Deposit 

Insurance Corporation (FDIC), and the Office of Thrift Supervision 

(OTS) (collectively, the Agencies) are amending their Community 

Reinvestment Act (CRA) regulations to adjust the asset-size thresholds 

used to define ``small bank'' or ``small savings association'' and 

``intermediate small bank'' or ``intermediate small savings 

association.'' As required by the CRA regulations, the adjustment to 

the threshold amount is based on the annual percentage change in the 

Consumer Price Index.



Designated Reserve Ratio (AD69)



    To implement a comprehensive, long-range management plan for the 

Deposit Insurance Fund (DIF or fund), the FDIC is amending its 

regulations to set the Designated Reserve Ratio (DRR) at 2 percent.



Deposit Insurance Regulations; Unlimited Coverage for Noninterest 

Bearing Transaction Accounts; Inclusion of Interest on Lawyers Trust 

Accounts (AD72)



    The FDIC is adopting a final rule amending its deposit insurance 

regulations to implement an amendment to section 11(a)(1)(B)(iii) of 

the Federal Deposit Insurance Act (FDI Act), as added by section 343 of 

the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 

111-203), that includes interest on Lawyers Trust Accounts (IOLTAs) in 

the definition of ``noninterest-bearing transaction account'' for 

purposes of providing unlimited deposit insurance for such accounts for 

two years starting December 31, 2010.



Orderly Liquidation Authority Provisions of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act (AD73)



    The FDIC is implementing certain provisions of its authority to 

resolve covered financial companies under title II of the Dodd-Frank 

Wall Street Reform and Consumer Protection Act. The FDIC's purpose in 

issuing this Rule is to provide greater clarity and certainty about how 

key components of this authority will be implemented and to ensure that 

the liquidation process under title II reflects the Dodd-Frank Act's 

mandate of transparency in the liquidation of failing systemic 

financial companies.



Federal Deposit Insurance Corporation.

Valerie Best,

Assistant Executive Secretary.



         Federal Deposit Insurance Corporation--Final Rule Stage

------------------------------------------------------------------------

                                                           Regulation

       Sequence No.                    Title             Identifier No.

------------------------------------------------------------------------

444.......................  12 CFR 325 Alternatives to         3064-AD62

                             the Use of Credit Ratings

                             in the Risk-Based Capital

                             Guidelines of the Federal

                             Banking Agencies.

------------------------------------------------------------------------





FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)



Final Rule Stage



444. 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 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  .......................

Final Rule..........................   06/00/11  .......................

------------------------------------------------------------------------



    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. 2011-15502 Filed 7-6-11; 8:45 am]

BILLING CODE 6714-01-P