Federal Reserve

On Wednesday, April 7, 2010, Federal Reserve Chairman Ben Bernanke gave a speech at the Dallas Regional Chamber discussing the origins of the financial crisis, the Federal Reserve's policy responses, and both near term and longer term economic challenges facing the United States.  Chairman Bernanke emphasized the need for fiscal responsibility in order to secure financial stability and healthy economic growth.

Read Ben Bernanke's speech

Asset Backed Securities

Also on Wednesday, April 7, 2010, the Securities and Exchange Commission unanimously approved and released for public comment proposed rules overhauling Regulation AB and other rules that govern the offering process, disclosure, and reporting for asset-backed securities.  The proposed changes are intended to better protect investors.

Read the SEC's press release with links to the proposed rules

Transaction Account Guarantee Program

On Wednesday April 13, 2010, the Board of Directors of the Federal Deposit Insurance Corporation approved an interim rule extending the Transaction Account Guarantee component of the Temporary Liquidity Guarantee Program until December 31, 2010.  This extension extends the program six months from its original June 30, 2010 expiration date.  The current extension also allows for an additional 12-month extension without further rulemaking should "economic conditions warrant such an extension."  The Transaction Account Guarantee Program authorizes the FDIC to guarantee qualifying noninterest-bearing transaction accounts.

Read the FDIC's press release with links to the interim rule

Deposit Insurance Assessments System

Also on Wednesday April 13, 2010, the Board of Directors of the FDIC approved a Notice of Proposed Rulemaking to revise Deposit Insurance Assessments for large institutions.  The FDIC issued a press release stating that these large institutions "pose unique and concentrated risks to the Deposit Insurance Fund."  In addition to other changes, the revisions would eliminate the use of risk categories and long-term debt ratings, although supervisory ratings would still be used when measuring risk.  FDIC Chairman Sheila Blair stated that the proposed system "charges for risk when it is assumed, and it provides incentives for institutions to avoid excessive risk during economic expansions."