Major developments over the past week include the following:

The Economy


  • Federal Reserve discusses substantive issues leading to withdrawals of applications.
  • Federal Reserve to publish semi-annual report on actions on applications, including denials and withdrawals, beginning with first half of 2014.



  • House of Representatives votes to approve H.R. 3193, the Consumer Financial Protection and Soundness Improvement Act of 2013 (Feb. 27).


  • OCC announces four series of workshops for directors.
    • “Mastering the Basics Workshop: A Director's Challenge.”
    • “Risk Assessment Workshop: Directors, Where is the Risk in Your Institution.”
    • “Compliance Risk Workshop: What Directors Need to Know.”
    • “Credit Risk Workshop: A Director's Focus."
    • Information available at


  • Federal Reserve Board of Governors likely to begin votes on enforcement actions, per oral testimony of Chair Yellen before the Senate Banking Committee (Feb. 27).
    • Nature of actions to be voted upon is unclear.

Monetary Policy


Payday Lending

Physical Commodities

Too Big to Fail

Virtual Currency

  • Federal Reserve lacks authority to supervise Bitcoin, per testimony of Federal Reserve Chair Yellen before the Senate Banking Committee.

Volcker Rule

  • For chronology, see Appendix below.

Bank Closings

Congressional Hearings

Upcoming Events

  • Mar. 4
    • Senate Banking Committee nomination hearing.
      • Three Federal Reserve Governors: Stanley Fischer (as Vice Chair), Jerome Powell, and Lael Brainard.
      • Also nominees for HUD Assistant Secretary, NCUA Board.
  • House Financial Services Committee hearing, “The Growth of Financial Regulation and its Impact on International Competitiveness."
  • Mar. 5
    • House Financial Services Committee hearing, “Data Security: Examining Efforts to Protect Americans' Financial Information."
  • Mar. 6
    • Senate Banking Committee hearing, “MAP-21 Reauthorization: The Federal Role and Current Challenges to Public Transportation."
  • Mar. 18-19
    • Federal Open Market Committee
  • Mar. 20
    • Federal Reserve to release results of supervisory stress tests.
  • Mar. 26
    • Federal Reserve to release CCAR results.
  • Mar. 31
    • OCC Symposium, “Building on 150 Years: The Future of National Banking"

Regulatory Comment Deadlines

  • Mar. 7 – Federal Reserve: amendments to Regulation A, emergency lending authority.
  • Mar. 10 – SEC: Strategic Plan for 2014-2018.
  • Mar. 17 – CFPB: Regulation E, list of countries qualifying for safe harbor.
  • Mar. 24 – SEC: amendments to Regulation A.
  • Mar. 28 – OCC: heightened expectations for large national banks and federal savings associations.
  • Mar. 31 – Federal Reserve: amendments to Policy Statement on Payment System Risk and to Regulation HH (financial market utilities) to reflect international Principles for Financial Market Infrastructures.
  • April 1 – CFPB: supervision of larger international money transmitters.
  • April 11 – BCBS: Basel III: The Net Stable Funding Ratio.
  • April 15 – Federal Reserve: repeal of Regulation P.
  • April 16 – Federal Reserve: advance notice of proposed rulemaking on physical commodity holdings by financial holding companies.
  • April 21 – Federal Reserve: modification of definition of “creditor” in Identity Theft Red Flags Rule.
  • April 21 – Federal Reserve: repeal of Regulation DD.
  • May 2 – Federal Reserve: Application of Regulation CC to electronic checks and electronic returned checks.

Appendix - Volcker Rule

  • Trust preferred securities: prohibition in final Volcker Rule on investments in CDOs extends to investments in pooled TruPS (Dec. 19).
    • Issues:
      • Important accounting consequence for banks now holding pooled TruPS: prohibition means that the investments have suffered an other-than-temporary impairment and must be written down.
  • Chronology of events:
    • Dec. 10: final Volcker Rule released and available at
    • Dec. 19: agencies issue FAQs and related material available, at
    • Dec. 23: ABA and 4 banks file suit in D.C. federal district court to block application of Volcker Rule to TruPS holdings and seek emergency relief in D.C. Circuit.
    • Dec. 27: agencies issue statement that they are reviewing application of Volcker Rule to TruPS investment vehicles, partly in light of Collins Amendment.
    • Jan. 8-9: "Fairness for Community Job Creators Act" introduced to prohibit Volcker Rule from requiring banks to divest holdings of pooled TruPS and to prevent banks from having to take write-down.
      • S. 1907
      • H.R. 3819
    • Jan. 9: Senators Manchin and Wicker introduce S. 1912, a bill to "clarify that certain banking entities are not required to divest from collateralized debt obligations backed by trust preferred securities under the Volcker Rule."
      • Narrower relief than S. 1907 or H.R. 3819.
    • Jan. 14: agencies issue interim final rule authorizing retention of interests in and sponsorship of bank-issued CDOs backed by TruPS, available at
      • Prerequisites:
        • Underlying TruPS issued before May 19, 2010, by bank holding company with less than $15 billion in assets.
        • CDO established and interest issued before May 19, 2010.
        • Interest acquired on or before Dec. 10, 2013.
      • Comment deadline: 30 days after publication in Federal Register.
    • Jan. 15: ABA announces withdrawal of request for emergency relief in D.C. Circuit but reserves judgment on continuing litigation.
    • Jan. 15: House Financial Services Committee hearings, "The Impact of the Volcker Rule on Job Creators, Part I."
    • Jan. 29: European Commission counterpart proposal, see International.
    • Jan. 30: Agencies announce Mar. 3 as deadline for comments on interim final rule.
    • Feb. 5: House Financial Services Committee hearings, "The Impact of the Volcker Rule on Job Creators, Part II."
    • Feb. 12: ABA announces voluntary dismissal of U.S. district court complaint against regulators.