Community Banking

  • Quarterly banking profile for Q2 2013 released by FDIC and available at this link.
  • Community Development Investments newsletter (Aug. 2013) published by OCC and available at this link.
  • Focus on lending in Native American communities.

Securitizations

  • Second proposal on risk retention by sponsors of asset-backed securitizations released by agencies on Aug. 28 and available at this link.
  • "Significantly increase the degree of flexibility that sponsors would have in meeting the risk retention requirements."
  • "Qualified residential mortgage" definition the same as CFPB definition of "qualified mortgage."
  • Sponsor may use any combination of "eligible vertical interest" and "eligible horizontal interest" to meet 5% requirement.
  • Horizontal risk retention to be measured by fair value.
  • More flexible treatment for payments to a horizontal risk retention interest.
  • Premium capture cash reserve account requirement eliminated.
  • New exemptions for certain resecuritizations, seasoned loans, and certain types of securitizations with low credit risk.
  • New risk retention option for collateralized loan obligations.
  • Revised standards for risk retention by third-party purchaser of CMBS.
  • Exemption for transfer of a horizontal interest in a CMBS transaction after 5 years.
  • Participating agencies include Federal Reserve, HUD, FDIC, FHFA, OCC, and SEC.
  • Original proposal available at this link

Too Big to Fail

  • Model template for tailored resolution plans published by Federal Reserve and FDIC on Sept. 3; available at this link.
  • Option available to smaller and less complex banking organizations required to file a resolution plan.  

Bank Closings

  • None

Congressional Activity

  • House and Senate not in session; both to return Sept. 9, 2013.

Upcoming Events

  • Sept. 17-18: Federal Open Market Committee meeting.

Regulatory Comment Deadlines

  • Sept. 3 – Federal Reserve: capital rules—country risk classifications, traded securitization positions, technical amendments to definition of covered position, and clarification of timing for market risk disclosures.
  • Sept. 9 – CFPB, other agencies: Exemptions from appraisal requirements for certain high-priced mortgage loans.
  • Sept. 16 – CFTC: standards for compliance with compliance with core principles  of derivatives clearing organizations by systemically important derivatives clearing organizations.
  • Sept. 17 – SEC: Money market reforms.
  • Sept. 23 – SEC: Amendments to Regulation D.
  • Sept. 25 – Federal Reserve, FDIC, OCC: Stress Test Guidance for Medium-Sized Firms.
  • Sept. 27 – BCBS: Capital treatment of bank exposures to central counterparties; non-internal model method for capitalising counterparty credit risk exposures ◦Sept. 30 – FSB: Principles for an Effective Risk Appetite Framework
  • Oct. 4 – BCBS: Capital requirements for banks' equity investments in funds.
  • Oct. 11 – BCBS: Discussion paper, "Balancing risk sensitivity, simplicity and comparability."
  • Oct. 21 – Federal Reserve, OCC, FDIC: Supplementary Leverage Ratio.
  • Oct. 30 – Federal Reserve, OCC, FDIC, SEC, CFTC: Credit risk retention.
  • 60 days after publication – FRB, FDIC, OCC: Market risk capital rules