Financial Services Bulletin: New Rules at the Federal Reserve, SEC, FDIC and OCC
Federal Reserve Adopts Interim Final Rule regarding "Debt" for Small Bank Holding Companies and Adopts Final Rule regarding Tier 1 Capital for Bank Holding Companies
On Monday, June 13, 2011, the Federal Reserve Board adopted an interim final rule allowing small bank holding companies that are either S-corporations or organized in mutual form to exclude subordinated debt issued to Treasury under the SBLF, or Small Business Lending Fund, (as well as subordinated debt issued to Treasury under TARP) from treatment as "debt" for purposes of the Board's Small Bank Holding Company Policy Statement's debt-to-equity standard.
The Federal Reserve Board also adopted a final rule allowing bank holding companies that are S-corporations or organized in mutual form to include subordinated debt issued to Treasury under TARP, or the Troubled Asset Relief Program, in Tier-1 capital.
Read the Federal Reserve press release
SEC Announces Steps Addressing One Year Effective Date of Dodd-Frank Act's Title VII
On Friday, June 10, 2011, the Securities and Exchange Commission announced it is taking a series of actions to clarify requirements applicable to security-based swap transactions on and after July 16, 2011, the effective date of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act") and to provide the requisite relief. Title VII generally regulates over-the-counter derivatives. The SEC plans on (1) providing guidance regarding Subtitle B of Title VII, dealing with the new regulatory regime for security-based swaps, which is set to become operable on July 16, 2011; (2) provide guidance and relief regarding pre-Dodd-Frank Act provisions regarding security-based swaps; and (3) take other actions, such as extending certain temporary rules in order to facilitate the clearing of certain credit default swaps by clearing agencies.
Read the SEC press release
SEC Proposes Exemptions from Registration for Security-Based Swaps Issued by Certain Clearing Agencies
On Friday, June 10, 2011, in an effort to facilitate the clearing of security-based swaps, the SEC proposed rules exempting transactions by clearing agencies relating to security-based swaps from all provisions of the Securities Act, other than anti-fraud provisions. The proposed rules would also exempt security-based swaps from Exchange-Act registration requirements and from the Trust Indenture Act, should certain conditions be met. The proposed rules implement certain sections of Title VII of the Dodd-Frank Act.
Read the SEC press release
Federal Reserve, FDIC and OCC Adopt Final Rules Establishing Risk-Based Capital Floor
On Tuesday, June 14, 2011, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency jointly adopted a final rule establishing a floor for the risk-based capital requirements applicable to the largest banking organizations. The adopted rules implement Section 171 of the Dodd-Frank Act. Banking organizations subject to the capital floor are required to meet the higher of the minimum requirements under general risk-based capital rules and the minimum requirements under the advanced approaches risk-based capital rules.
Read the Federal Reserve press release© 2011 Perkins Coie LLP