Leverage Capital Surcharge: regulators proposed higher supplementary leverage ratios for banking holding companies with more than $700 billion in assets or more than $10 trillion in assets under management. Eight organizations would be subject to proposed standard. Proposal is available here.
- Bank holding company: 5% supplementary ratio (2% above new 3% supplementary ratio for advanced approaches banks) to function as a capital buffer. Failure to meet ratio would result in limitations on distributions and discretionary bonus payments.
- Subsidiary insured depository institution: 6% in order to be deemed well-capitalized
Final Basel-based capital rules approved on July 9 by OCC and by FDIC as "interim final rule." Materials available here.
- See previous number for highlights.
- New capital requirements: guide and quick reference guide for community banks issued by OCC and available here.
OCC Workshops, Fargo ND, Aug. 13-14
- "Compliance Risk: What Directors Need to Know"
- "Credit Risk: A Director's Focus"
CFPB issues final rule amending 2013 Mortgage Rules, available here.
- Reg X servicing provisions
- Implementation dates for ARM servicing
- Exclusions from requirements on higher-priced mortgage loans
- Small servicer exemption
- Use of GSE/federal agency criteria in determining eligibility for QM status
- Determination of debt and income for purposes of originating QMs
Appraisal requirements: exemption of certain higher priced loans. Proposed rule issued by Federal Reserve, CFPB, FDIC, FHFA, NCUA, and OCC and available here.
- Exemptions cover loans of $25,000 or less, certain "streamlined" refinancing, and certain loans secured by manufactured housing.
- Comments due Sept. 9, 2013.
Senate Banking Committee leaders reach agreement on bipartisan FHA solvency bill. Joint Statement available here.
- Text to be released week of July 15.
House Fin. Serv. Comm. Chairman Hensarling announces "Protecting American Taxpayers and Homeowners Act of 2013." Discussion draft available here.
- Hearing on proposal scheduled for July 18. See below.
CFPB issuances, July 10, on harmful debt collection practices. Releases available here.
- Bulletin 2013-07: Prohibition of Unfair, Deceptive, or Abusive Acts or Practices in the Collection of Consumer Debts.
- Bulletin 2013-08: Representations Regarding Effect of Debt Payments on Credit Reports and Scores.
- Five sample action letters for use by consumers.
Too Big to Fail
- Nonbank SIFIs: AIG and GE Capital designated for consolidated supervision by Federal Reserve and enhanced prudential standards. Material available here.
- Glass-Steagall: Sens. McCain (R-AZ), Warren (D-MA), Cantwell (D-WA), and King (D-ME) introduce "21st Century Glass-Steagall Act." Text of bill is available here.
BCBS issues discussion paper, "The regulatory framework: balancing risk sensitivity, simplicity and comparability," available here.
- Comments due Oct. 13, 2013.
Swaps and Derivatives
- CFTC and EC announce a Path Forward on joint understandings on a package of measures on an approach to cross-border derivatives. Announcement available here.
- CFTC approves Final Interpretive Guidance and related Exemptive Order.
- "Examining Constitutional Deficiencies and Legal Uncertainties in the Dodd-Frank Act," Hearing before the House Fin. Serv. Comm., Oversight and Investigations Subcomm. Materials available here.
- "Examining How the Consumer Financial Protection Bureau Collects and Uses Consumer Data," Hearing before the House Fin. Serv. Comm., Financial Institutions and Consumer Credit Subcomm. Materials available here.
- "Reducing Barriers to Capital Formation, Part II," Hearing before the House Fin. Serv. Comm., Capital Markets and GSEs Subcomm. Materials available here.
- "Mitigating Systemic Risk through Wall Street Reforms," Hearing before the Sen. Banking Comm. Materials available here.
- FSOC closed meeting.
- Hearing, "Monetary Policy and the State of the Economy," House Fin. Serv. Comm.
- Hearing, "Shining a Light on the Consumer Debt Industry," Sen. Banking Comm.
- Hearing, "A Legislative Proposal to Protect American Taxpayers and Homeowners by Creating a Sustainable Housing Finance System," House Fin. Serv. Comm.
- Hearing, "The Semiannual Monetary Policy Report to the Congress," Sen. Banking Comm.
Regulatory Comment Deadlines
- July 15 – CFPB: 60-day Paperwork Reduction Act notice: Truth in Savings Act.
FHFA: Executive compensation
FHFA: Golden parachute and indemnification payments
July 22 – SEC: all Dodd-Frank Title VII proposed rules on security-based swaps and security-based swap market participants have been reopened for comment.
- Includes S7-43-10: End-User Exception to Mandatory Clearing of Security-Based Swaps
FHFA: Removal of references to credit ratings
CFPB: Modifications to 2013 mortgage rules
- Aug. 4 – Federal Reserve: Application of swaps push-out rule to uninsured branches and agencies of foreign banks.
- Aug. 12 – CFTC: Exemptive Order relating to cross-border swap activities.
- Aug. 21 – SEC: Cross-border security-based swap transactions.
- 60 days after Federal Register publication – Federal Reserve: data collection requirements for certain money market instruments
- Sept. 9 – CFTC, other agencies: Exemptions from appraisal requirements for certain high-priced mortgage loans.
- Sept. 17 – SEC: Money market reforms.
- Sept. 27 – BCBS: Capital treatment of bank exposures to central counterparties
- 60 days after publication – FRB, FDIC, OCC: Market risk capital rules
- Oct. 4 – BCBS: Capital requirements for banks' equity investments in funds.
- Oct. 11 – BCBS: Discussion paper, "Balancing risk sensitivity, simplicity and comparability."