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FDIC Law, Regulations, Related Acts

FEDERAL DEPOSIT INSURANCE CORPORATION     [Main Tabs]     [Index]     [Previous Page]     [Search] FEDERAL DEPOSIT INSURANCE CORPORATION REPORT BULLETIN NO. 1 March 31, 2009 550 Seventeenth Street, N.W. Washington, D.C. 20429 Order printed copies Supplement Highlights Supplemental Highlights * Temporary Liquidity Guarantee Program. The FDIC adopted a Final Rule to implement its Temporary Liquidity Guarantee Program. The Temporary Liquidity Guarantee Program, designed to avoid or mitigate adverse effects on economic conditions or financial stability, has two primary components: The Debt Guarantee Program, by which the FDIC will guarantee the payment of certain newly issued senior unsecured debt, and the Transaction Account Guarantee Program, by which the FDIC will guarantee certain noninterest-bearing transaction accounts. 73 Fed. Reg. 66160, November 7, 2008. See pages 3239--3248 * Assessment Dividends. The FDIC adopted a final rule to implement the assessment dividend requirements in the Federal Deposit Insurance Reform Act of 2005 (the Reform Act) and the Federal Deposit Insurance Reform Conforming Amendments Act of 2005 (the Amendments Act). The final rule will take effect on January 1, 2009. It is the follow-up to the temporary final rule on assessment dividends that the FDIC issued in October 2006, which expires on December 31, 2008. 73 Fed. Reg. 73158, December 2, 2008. See pages 2281--2282, and 2296.04-A--2296.04-C * Rules of Practice and Procedure. The Federal Civil Monetary Penalties Inflation Adjustment Act of 1990, as amended, requires all Federal agencies with statutory authority to impose civil money penalties (CMPs) to evaluate and adjust those CMPs every four years. The Federal Deposit Insurance Corporation (FDIC) last adjusted the maximum amounts of CMPs under its jurisdiction in 2004. The FDIC issued this final rule to implement the required adjustments to its CMPs, in consultation with the other Federal banking agencies and the National Credit Union Administration. 73 Fed. Reg. 73157, December 2, 2008. See pages 2151--2152.01, and 2159--2160.03. * Community Reinvestment Act Regulations. The OCC, the Board, the FDIC, and the OTS (collectively, the ``agencies'') amended their Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define ``small bank'' or ``small savings association'' and ``intermediate small bank'' or ``intermediate small savings association.'' As required by the CRA regulations, the adjustment to the threshold amount is based on the annual percentage change in the Consumer Price Index. 73 Fed. Reg. 78153, December 22, 2008. See pages 2786.01--2786.02 Recordkeeping Requirements for Qualified Financial Contracts. The FDIC adopted its final rule establishing recordkeeping requirements for qualified financial contracts (QFCs) held by insured depository institutions in a troubled condition as defined in this rule. The appendix to the rule requires an institution in a troubled condition, upon written notification by the FDIC, to produce immediately at the close of processing of the institution\'s business day, for a period provided in the notification, the electronic files for certain position level and counterparty level data; electronic or written lists of QFC counterparty and portfolio location identifiers, certain affiliates of the institution and the institution\'s counterparties to QFC transactions, contact information and organizational charts for key personnel involved in QFC activities, and contact information for vendors for such activities; and copies of key agreements and related documents for each QFC. 73 Fed. Reg. 78162, December 22, 2008. See pages 3249--3254 * Risk Based Assessments. The FDIC amended its regulations to increase risk-based assessment rates effective for the first quarter 2009 assessment period. This is in accordance with the Restoration plan for the DIF published on October 16, 2008, in the Federal Register. 73 Fed. Reg. 78155, December 22, 2008. See pages 2296.01--2296.02-D * Minimum Capital Ratios; Capital Adequacy Guidelines; Capital Maintenance; Capital: Deduction of Goodwill Net of Associated Deferred Tax Liability. The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS) (collectively, the Agencies) amended their regulatory capital rules to permit banks, bank holding companies, and savings associations (collectively, banking organizations) to reduce the amount of goodwill that a banking organization must deduct from tier 1 capital by the amount of any deferred tax liability associated with that goodwill. For a banking organization that elects to apply this final rule, the amount of goodwill the banking organization must deduct from tier 1 capital would reflect the maximum exposure to loss in the event that such goodwill is impaired or derecognized for financial reporting purposes. 73 Fed. Reg. 79602, December 30, 2008. See pages 2248.01--2248.02, 6119--6120, 6120.17--6120.18 * Home Mortgage Disclosure. The Board published its final rule amending the staff commentary that interprets the requirements of Regulations C (Home Mortgage Disclosure). The staff commentary is amended to increase the asset-size exemption threshold for depository institutions based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers. The adjustment from $37 million to $39 million reflects the increase of that index by 4.49\% percent during the twelve-month period ending in November 2008. Thus, depository institutions with assets of $39 million or less as of December 31, 2008, are exempt from collecting data in 2009. 73 Fed. Reg. 78616, December 23, 2008. See pages 7289--7290, and 7297 * Reserve Requirements of Depository Institutions. The Board amended its Regulation D, Reserve Requirements of Depository Institutions, to revise the rate for earnings on required reserve balances and excess balances of eligible institutions and to provide that the rates may be revised by the Board from time to time. 73 Fed. Reg. 78616, December 23, 2008. See pages 7586.05--7586.06 * Reserve Requirements of Depository Institutions. The Board revised its interim final rule amending Regulation D, Reserve Requirements of Depository Institutions, to alter the formula by which earnings on required reserve balances and on excess balances of eligible institutions are calculated. The remainder of the interim final rule, including the period during which comments may be submitted, is unchanged from the interim final rule as published on October 9, 2008. 73 Fed. Reg. 67713, November 17, 2008. See pages 7586.05--7586.06 * Availability of Funds and Collection of Checks. The Board of Governors (Board) amended the routing number guide to next-day availability checks and local checks in Regulation CC to delete the reference to the head office of the Federal Reserve Bank of St. Louis and to reassign the Federal Reserve routing symbols currently listed under that office to the head office of the Federal Reserve Bank of Atlanta. These amendments reflect the restructuring of check-processing operations within the Federal Reserve System. 73 Fed. Reg. 77491, December 19, 2008. See pages 7418.23--7418.26 * Availability of Funds and Collection of Checks. The Board of Governors (Board) is amending the routing number guide to next-day availability checks and local checks in Regulation CC to delete the references to the Des Moines office of the Federal Reserve Bank of Chicago and to reassign the Federal Reserve routing symbols currently listed under that office to the head office of the Federal Reserve Bank of Chicago. These amendments reflect the restructuring of check-processing operations within the Federal Reserve System. 73 Fed. Reg. 70590, November 2, 2008. See pages 7418.23--7418.26 * Real Estate Settlement Procedures Act (RESPA): Rule to Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs. This final rule amends HUD's regulations to further RESPA's purposes by requiring more timely and effective disclosures related to mortgage settlement costs for federally related mortgage loans to consumers. The changes made by this final rule are designed to protect consumers from unnecessarily high settlement costs by taking steps to: improve and standardize the Good Faith Estimate (GFE) form to make it easier to use for shopping among settlement service providers; ensure that page 1 of the GFE provides a clear summary of the loan terms and total settlement charges so that borrowers will be able to use the GFE to identify a particular loan product and comparison shop among loan originators; provide more accurate estimates of costs of settlement services shown on the GFE; improve disclosure of yield spread premiums (YSPs) to help borrowers understand how YSPs can affect borrowers' settlement charges; facilitate comparison of the GFE and the HUD-1.HUD-1A Settlement Statements; ensure that at settlement borrowers are aware of final costs as they relate to their particular mortgage loan and settlement transaction; clarify HUD\N1 instructions; expressly state that RESPA permits the listing of an average charge on the HUD-1; and strengthen the prohibition against requiring the use of affiliated businesses. This final rule follows a March 14, 2008, proposed rule and makes changes in response to public comment and further consideration of certain issues by HUD. In addition, this rule provides for an appropriate transition period. Compliance with the new requirements pertaining to the GFE and settlement statements is not required until January 1, 2010. However, certain provisions are to be implemented upon the effective date of the final rule. 73 Fed. Reg. 68204, November 17, 2008. See pages 6991--7050.04     [Main Tabs]     [Index]     [Next Page]     [Search]