Between August 2010 and June 2011, the Federal Reserve System completed at least 40 initiatives related to compliance with provisions of the Dodd-Frank Act. Some of the initiatives that the Board of Governors will work on between July and September 2011 to meet the deadlines of the act include the following:
Requests for Comments:
- Intermediate Holding Company Regulations for Nonbank Financial Companies Designated for Consolidated Supervision – This concerns when and how a nonbank financial company designated for consolidated supervision must establish an intermediate holding company to separate its financial activities from its commercial activities.
- Intermediate Holding Company Regulations for Grandfathered Unitary SLHCs – The proposed rule concerns when and how a grandfathered unitary savings and loan holding company (SLHC) that is engaged in commercial activities must establish an intermediate holding company to conduct its financial activities.
- Prior Notification by Large Financial Holding Companies for Large Nonbank Acquisitions –The rule would implement the requirement that nonbank financial companies supervised by the Board and bank holding companies (BHC) with $50 billion or more in assets provide the Board prior written notice to acquire a nonbanking company with $10 billion or more in assets.
- Applications by Nonbank Financial Companies to Acquire Bank Shares – This pertains to the requirement that a nonbank financial company seek the Board’s approval before acquiring more than 5 percent of the voting shares of any bank or bank holding company, thereby aligning this threshold with that currently applied to bank holding company acquisitions of bank shares.
- Financial Stability Considerations in BHC Act and Bank Merger Act Transactions – The rule would affect implementing the requirement that the Board consider the impact on financial stability of bank acquisitions or merger proposals under the BHC Act Section 3, the Bank Merger Act and notices to acquire a nonbanking company.
- Thrift Acquisition National Deposit Cap – The rule would apply the 10 percent national deposit cap to interstate bank mergers and acquisitions of savings associations or other nonbank insured depository institutions by BHCs, and savings and loan holding companies.
- Registration of Systemically-Designated Nonbank Financial Companies – The proposal would prescribe the forms and information requirements for a systemically designated nonbank financial company to register with the Board.
- Credit Rating Alternatives – The proposal would change existing rules to implement the requirements of section 939A of the Dodd-Frank Act relating to use of credit ratings in agency rules.
- Credit Rating Alternatives for Bank Financial Subsidiaries – The proposal, developed with the U.S. Department of the Treasury, would replace the investment-grade rating requirement for national and state member banks to invest in or control a financial subsidiary with an alternative standard.
- Minimum Leverage and Risk-Based Capital Requirements (Collins Amendment) – Following on a December 2010 proposed rule that would amend the advanced approaches capital adequacy framework consistent with the act, the Board will request comment on a proposed addressing other aspects of the Collins Amendment including minimum leverage requirements and risk considerations to be taken into account.
- Safe Harbor for Nonbank Financial Companies – Criteria would be established for exempting certain types or classes of nonbank financial companies from potential designation by the Financial Stability Oversight Council as systemically important.
Planned Issuance of Final Rules:
- Financial Market Utilities (FMUs): Risk-Management Standards, Advance Notice Requirements – The Board plans to issue a final rule to implement two provisions of the act related to supervision of FMUs designated as systemically important by the Financial Stability Oversight Council.
- Interest on Demand Deposits – The Board intends to issue a final rule repealing Regulation Q and allowing payment of interest on demand deposits at depository institutions.
- Swaps Margin Requirements – The Board and other federal bank regulatory agencies intend to issue a final inter-agency rule implementing the margin requirements for swap dealers, security-based swap dealers, major swap participants and major security-based swap participants under each prudential regulator’s jurisdiction.
- Intermediate Holding Company Regulations for Grandfathered Unitary SLHCs – The Board plans to issue a final rule governing when and how a grandfathered unitary SLHC that is engaged in commercial activities must establish an intermediate holding company to conduct its financial activities.
- Truth In Lending Act Escrow Administration – The Board intends to issue a final rule: expanding the minimum period for mandatory escrow accounts for first-lien, higher-priced mortgages, providing an exemption for certain creditors in “rural or underserved” counties, and implementing new escrow disclosure requirements for all residential mortgages.
- Credit Risk Retention – The Board, along with other Federal regulatory agencies, plans to issue a final inter-agency rule to implement the credit risk-retention requirements applicable in connection with the issuance of asset-backed securities.
Stay up to date on the latest in the Dodd-Frank rule-writing process at the St. Louis Fed’s Dodd-Frank Regulatory Reform Rules site.