[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.
------------------------------------------------------------------------
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
------------------------------------------------------------------------

    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