Highlights:
- Under the agencies' existing regulatory capital rules, certain assets that must be deducted from Tier 1 capital may be reduced by any deferred tax liability specifically related to the asset.
- In the attached NPR, the agencies propose to extend this treatment to goodwill acquired in a taxable business combination, thereby allowing a bank, bank holding company, or savings association to make the required deduction of goodwill from Tier 1 capital net of any associated deferred tax liability.
- The NPR also requests comment on whether there are other intangible assets currently required to be fully deducted from Tier 1 capital for which the agencies should consider a similar treatment.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Chief Accounting Officer
Related Topics:
Risk-Based Capital Standards
12 CFR Part 325
Attachment:
Notice of Proposed Rulemaking, Minimum Capital
Ratios; Capital Adequacy Guidelines; Capital
Maintenance; Capital: Deduction of Goodwill Net of
Associated Deferred Tax Liability (PDF Help)
Contact:
Christine Bouvier, Senior Policy Analyst (Bank
Accounting), at cbouvier@fdic.gov or (202) 898-
7289
Nancy Hunt, Senior Policy Analyst, at
nhunt@fdic.gov or (202) 898-6643
Mark Handzlik, Senior Attorney, at
mhandzlik@fdic.gov or (202) 898-3990
Printable Format:
FIL-100-2008 - PDF (PDF Help)
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2008/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters
may be obtained through the FDIC's Public
Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (1-877-275-3342 or 703-
562-2200).
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