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Category: Banking & Consumer Reg Policy

Agencies reviewing treatment of collateralized debt obligations backed by trust preferred securities under final rules implementing the “Volcker rule”

Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Securities and Exchange Commission

For immediate release

December 27, 2013

Agencies Reviewing Treatment of Collateralized Debt Obligations Backed by Trust Preferred Securities under Final Rules Implementing the “Volcker rule”

The Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission on Friday said they are reviewing whether it would be appropriate and consistent with the Dodd-Frank Wall Street Reform and Consumer Protection Act not to subject collateralized debt obligations backed by trust preferred securities to the investment prohibitions of section 619 of Dodd-Frank, otherwise known as the “Volcker rule.”

The agencies intend to address the matter no later than January 15, 2014.  The accounting staffs of the agencies believe that, consistent with generally accepted accounting principles, any actions in January 2014 that occur before the issuance of December 31, 2013, financial reports should be considered when preparing those financial reports.

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Commodity Futures Trading Commission, and the Securities and Exchange Commission issued final rules to implement section 619 on December 10, 2013.

Attachment (78 KB PDF)

SR Letter 13-25
 

Media Contacts:
Federal Reserve Board Barbara Hagenbaugh (202) 452-2955
FDIC Andrew Gray (202) 898-7192
OCC William Grassano (202) 649-6870
SEC Public Affairs (202) 551-4120

Federal Reserve Board seeks comment on proposed amendments to Regulation A regarding emergency lending authority

Release Date: December 23, 2013

For immediate release

The Federal Reserve Board on Monday invited public comment on proposed amendments to Regulation A (Extensions of Credit by Federal Reserve Banks) to implement section 1101 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 1101 amended the Federal Reserve’s emergency lending authority in section 13(3) of the Federal Reserve Act.

As required under the Dodd-Frank Act, the proposed rule is designed to ensure that any emergency lending program or facility is for the purpose of providing liquidity to the financial system, and not to aid an individual failing financial company.

The proposed rule has been developed in consultation with the Treasury Department. Comments on the proposal are due by March 7, 2014.

Attachment (PDF)

Comments on this proposal: Submit | View

For media inquiries, call 202-452-2955.

Board Votes

Agencies issue FAQ document regarding collateralized debt obligations backed by trust preferred securities under final rules implementing the “Volcker rule”

Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency

For immediate release

December 19, 2013

Agencies Issue FAQ Document Regarding Collateralized Debt Obligations Backed by Trust Preferred Securities under Final Rules Implementing the “Volcker Rule”

Three federal financial institution regulatory agencies today issued a FAQ (Frequently Asked Questions) document to provide clarification and guidance to banking entities regarding investments in “Covered Funds” and whether collateralized debt obligations backed by trust preferred securities (TruPS CDOs) could be determined to be Covered Funds under the final rules to implement section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The FAQs are intended to clarify that banking entities that have holdings in TruPS CDOs are not required to sell these holdings immediately under the final rules, but instead may use the conformance period to determine if they can be brought into conformance by the end of the conformance period, which is July 21, 2015.

The document released by the agencies provides an overview of some of the key legal issues banking entities should consider in determining whether holdings of TruPS CDOs are subject to the provision of the final rules implementing section 619, commonly known as the Volcker Rule. The issues identified and discussed in the document are whether a TruPS CDO qualifies in its current form as a Covered Fund under the final rules; whether it can be restructured or otherwise conformed to the final rules by the end of the conformance period of July 21, 2015; and whether a bank’s investment in the CDO constitutes an ownership interest.

The final rules were approved 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 and Exchange Commission, and the Commodity Futures Trading Commission on December 10, 2013.

FAQ Regarding Collateralized Debt Obligations Backed by Trust Preferred Securities under the Final Volcker rule (PDF)

Media Contacts:
Federal Reserve Board Barbara Hagenbaugh 202-452-2955
FDIC Andrew Gray 202-898-7192
OCC Robert M. Garsson 202-649-6870

Federal financial regulators extend comment period for proposed policy statement on assessing diversity policies and practices of regulated entities

Board of Governors of the Federal Reserve System
Consumer Financial Protection Bureau
Federal Deposit Insurance Corporation
National Credit Union Administration
Office of the Comptroller of the Currency
Securities and Exchange Commission

For immediate release

December 19, 2013

Federal Financial Regulators Extend Comment Period for Proposed Policy Statement on Assessing Diversity Policies and Practices of Regulated Entities

Six federal financial regulatory agencies announced today that they are extending the comment period for their proposed policy statement for assessing diversity policies and practices of the institutions they regulate to allow the public more time to analyze the issues and prepare their comments.

Commenters now have until February 7, 2014, to provide feedback on the proposed policy statement. Originally, comments were due December 24, 2013.

The proposed policy statement, issued pursuant to section 342 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is intended to promote transparency and awareness of diversity policies and practices within federally regulated financial institutions.

The agencies that issued the proposal are the Federal Reserve Board, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission.

Attachment (37 KB PDF)

Comments on this proposal: Submit | View

Media Contacts:
Federal Reserve Board Barbara Hagenbaugh 202-452-2955
CFBP Michelle Muth Person 202-435-7857
FDIC David Barr 202-898-6992
NCUA John Fairbanks 703-518-6336
OCC Stephanie Collins 202-649-6870
SEC Office of Public Affairs 202-551-4120