• FSOC Seeks Comment on Rules to Implement “Volcker Rule”

The Financial Stability Oversight Council (FSOC) is seeking public comment in advance of rules that will be proposed to implement Section 619 of the Dodd-Frank Act, which prohibits depository institutions from engaging in proprietary securities trading and from maintaining certain relationships with hedge funds and private equity funds (the Volcker Rule). Comments are due by November 5, 2010.

Nutter Notes: The Dodd-Frank Act requires the FSOC to conduct a study and make recommendations by January 22, 2011 to inform federal agency rulemaking on the Volcker Rule. The Federal Reserve, the FDIC, the OCC, the SEC and the CFTC are required to consider the findings of the FSOC study in developing regulations to implement the Volcker Rule.

  • Federal Banking Agencies Propose Changes to Call Report

The federal banking agencies on October 25 issued a request for comments on several proposed revisions to the Call Report that would take effect on March 31, 2011. The proposed reporting changes include a new breakdown by loan category of loans that are troubled debt restructurings, and the elimination of an exclusion from reporting restructured troubled consumer loans. Comments are due by November 29, 2010, and will be shared among all the agencies.

Nutter Notes: According to the agencies, the proposed Call Report changes are intended to provide data to meet safety-and-soundness needs and for other public purposes, and would assist the agencies in gaining a better understanding of banks’ credit and liquidity risk exposures, primarily through enhanced data on lending and other activities.