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| TO: |
CHIEF EXECUTIVE OFFICER |
| SUBJECT: |
FDIC Adopts FFIEC's Modified Policy Statement on Repurchase Agreements |
The FDIC Board of Directors has adopted the Federal Financial
Institutions Examination Council's (FFIEC) recently revised supervisory
policy statement on repurchase agreements. A copy of the policy statement
is attached. It provides guidance to insured depository institutions on
repurchase agreement activities, including guidelines for written
repurchase agreements, policies and procedures, credit risk management,
and collateral management.
The policy statement has three principal revisions. First, a new section
covering the requirements of the Government Securities Act has replaced an
obsolete section dealing with unregulated securities dealers. Second, the
policy statement has been streamlined and updated to generally cover other
laws and regulations. Third, the list of written repurchase agreement
provisions has been updated to reflect current market practice.
For more information, please contact Keith Ligon, Policy Section Chief in
the Securities, Capital Markets and Trust Branch of the FDIC's Division of
Supervision (DOS), on (202) 898-3618 or Kenton P. Fox, Senior Capital
Markets Specialist in DOS, on (202) 898-7119; or Leslie Sallberg, Counsel
in the FDIC's Legal Division, on (202) 898-8876.
|
Nicholas J. Ketcha Jr. |
|
Director |
Attachment: Feb. 20 Federal Register, pages 8645-8649.
Distribution: FDIC-Supervised Banks (Commercial and Savings)
NOTE: Paper copies of FDIC financial
institution letters may be obtained through the FDIC's Public
Information Center, 801 17th Street, N.W., Room 100, Washington,
D.C. 20434 (800-276-6003 or (703) 562-2200). |
